We know gift cards are an effective employee gift or reward and make a great addition to an incentive program for employers. In this space we rarely talk about how effective gift cards are in driving sales for retailers. First Data just released a new study which uncovered convincing evidence that gift cards provide major advantages to retailers too.
- Gift cards drive sales: Consumers spend an average of $20.79 more than the value of a gift card when they redeem. 31% of shoppers also buy at least one item they didn't plan to purchase.
- Gift cards attract new customers: 4% of gift card recipients report not having been to the store where their gift came from prior to the gift card redemption. 4% is not a huge share of the general population, but could be significant if that first time consumer became a valued, lifelong customer.
- Gift cards get consumers in-store: With so many retailers struggling to drive consumers into brick and mortar stores, gift cards prove to bring people in-store to shop. Gift cards are usually redeemed within 2-4 store visits of receiving a gift.
