Gift cards are versatile and make as good an employee reward as they do a sales driver to promote your brand.
First Data has released its 2014 Consumer Insights Survey, and it shows that gift cards can do as much for sales numbers as they can for motivating employees toward organizational goals. Here are two key components from the survey.
- Overspending: In 2012, consumers were spending an average of $20.79 more than the value of the gift cards they were given. This year the number has increased to $23.41, that's an 11% increase in two years. If consumers keep increasing overspend added onto gift card values, the potential for incremental sales growth is real. If you're selling in bulk to employee rewards programs, the incremental overspend is more predictable- and scalable.
- Incentives: Incentives drive loyalty, loyalty drives repeat purchasing. The cyclical pattern can be a goldmine for brands. 32% of respondents to First Data's survey indicated that they made a purchase because of an incentive, 40% spent more than planned because of an incentive. Loyal customers purchased an average of just over 2 gift cards per year, driving the cycle of incentives and gift card related additional purchasing.
First Data's survey is full of actionable insights based on consumer opinion. But in the small sample we just reviewed, it is clear that gift cards can have a real impact on purchasing and should have a real impact on 2015 planning and strategy. Gift cards have revenue potential, and the investment will yield returns.
