How Gift Cards Increase Your Sales
Gift cards are an often overlooked way to create repeat customers and increase sales.
As a small business, you have a lot to think about, lots of items to account for, going in and out of your establishment. We often see that small businesses don’t focus enough on the most profitable square foot of selling space in their buildings.
What is this space you ask? Well, that’s your gift card sales space. Too many merchants do not even display their gift cards much less have their staff remind patrons about them. The result is when a person needs a gift card, they usually just go the grocery store and buy it there. But it doesn’t have to be that way.
My advice to you is to think about your gift cards as profitable products because they are.
Top 3 Benefits of Selling Gift Cards
- CardHub estimates show that more than $44 billion in gift cards are never redeemed. That’s money for nothing. Even if the gift card is redeemed, at the very minimum, you are getting a bit of cash flow float from each gift card sale until the card is redeemed.
- Second, it’s like your customers are pre-paying for a product. This is great from an inventory and cash flow management perspective, giving you and your business access to interest-free money today to grow for tomorrow.
- Third, you are basically guaranteeing yourself a future sale, and many times that future sale comes in the form of two. Your patron buys a gift card today, and often when that gift card returns either with a new patron or the original purchaser, they are bringing a shopping or eating buddy. Kazam! Three sales!
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“Your patron buys a gift card today, and often when that gift card returns either with a new patron or the original purchaser, they are bringing a shopping or eating buddy. Kazam! Three sales!”
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Starting or restarting a gift card program
1. Location, Location, Location
First, keep your gift cards visible. People can’t buy something that they don’t know exists.
Secondly, make sure that gift card recipients can find your store based on the information on your gift card. Depending on how easy it is to search for your store online, you definitely want to include your physical and web address as well as your phone number on your gift card.
2. Brand Awareness
When creating your gift card, think about representing your brand well. Many times it’s cheaper to get a subpar card that you can throw a black logo or name on, but think about it, this is your brand, your business; show it well. I always recommend making your card reflect the image that you’ve painstakingly created. As one option, Vantiv offers customizable gift cards that are easy to create.
3. Support Staff
Support your brand with professional staff and onsite action. Nothing bugs customers more than getting attracted into a new business via gift card and finding sub-par service and/or apathetic staff. That business, by not addressing the finer points of supporting their customers just prevented themselves from earning a loyal client, because they didn’t take the time to make sure their marketing efforts would pay off. Yes, gift cards are part of your marketing plan. Make sure your staff is trained well to represent your brand and treat customers like their livelihood depends on them, as it typically does anyway.
Order your gift cards now to make sure that you’re well stocked for the holidays.
As always, we are here to help. Let us know if you have any questions.

Total Merchant Supply is a POS Dealer based in NC & SC.