4 Reasons to Focus on Selling Gift Cards Now
Have you ever looked at the rack of gift cards inside Meijer, Kroger, Walgreens and other major retailers around the country and wished that your brand could be there too? LEAD Marketing Agency’s Gift Card Sales and Distribution Department gets your brand placed into these retailers and a whole lot more.
Think it’s just for the big boys? Think again.
We’ve seen our regional and local clients double and triple their gift card sales revenue through the programs that we design and manage for them. And not only can we get you inside the major brick and mortar stores, we’ll show you how to maximize your sales online.
Sell a gift card … Gain money.
At its most basic form, that is what the transaction is. Essentially when you sell a gift card, you’ve gained a pre-paid reservation. Who doesn’t want to be paid up-front for their products and services? $46 billion was spent on gift cards in 2016.
- $28 billion on others
- $11 billion on themselves
- $7 billion by employers to employees
REASON # 2
What would you pay to have your brand delivered at eye level, to thousands of people who are actively shopping, daily?
I don’t know either. But there is a little acronym called CPM (cost per thousand) that is used in the ad business to quantify the value of delivering impressions to a thousand people.
Brands pay hefty CPMs for impressions in traditional ad platforms like billboards and digital display ads. And they should. They are valuable.
But gift card racks inside of major retail stores, not only deliver a very desirable CPM to a highly valuable target, they directly generate sales.
More than 60% of gift cards sales are bought for others.
If your program is managed correctly, you can increase revenue by making sales to people who normally may not purchase your product.
REASON # 3
What does it say about your brand when it is seen at a Walgreens, in close proximity to Starbucks, Home Depot, and Amazon?
It says that you are a credible brand too. It amplifies your status. It gives your brand the opportunity to be recognized and considered by consumers just as they would consider blue-chip brands. It increases your brand equity.
REASON # 4
It Ain’t Going Away.
The global gift card market is going nowhere but up. According to Persistence Market Research, it is likely to more than double by 2024, to $698 billion.
As a matter of fact, gift cards have become an acceptable substitute for more traditional gift options and increasingly expected and eagerly used, especially among ‘older’ Millennial adults,” according to Packaged Facts, a consumer research division of MarketResearch.com.
Additionally, the corporate sector is ramping up their demand for gift cards as they use them more and more for incentives and rewards for employees.
Face it. In our increasingly busy and less personal world, we have become accustomed to receiving gift cards. We actually like it. In many cases we prefer it. It is convenient.
So, why aren’t you 100% focused on increasing the sale of gift cards for your brand?