4Reasons why small BUSINESSES

GIFT CARDSHOULD HAVE A

PROGRAM

Gift cards accounted for more than $129 billion in consumer spending in 2015.

With spending on gift cards expected to reach $160 billion by 2018, small

businesses have the opportunity to cash in on profitable trend while aligning themselves to gifting occasions and

competing with national brands.

Small businesses also have an added advantage selling gift cards in that they can

be more personal than big box brands –giving a pre-paid card to a business that is unique and local shows the recipient that

the giver put some thought into the purchase. But the benefits don’t end there.

Keep swiping to learn four reasons why you should get on board the gift card train.

INCREASE1. AVERAGE TRANSACTIONS

The majority of gift card holders spend

nearly 40% more than the face value of the gift

card they receive. Essentially, when a customer uses a gift card at your store, it

typically leads to higher sales.

2 GUARANTEED. REVENUE

Unlike physical items that customers may purchase as gifts, gift cards cannot be

exchanged or returned, which means that those dollars will stay in your bank account. And when shoppers don’t spend their gift

cards, that also adds to your revenue. This is called “breakage” and in 2015, $973 million

in gift cards went unused. For small business owners, these qualities are an effective strategy for maximizing profitability and

reducing the possibility of lost sales.

3 BRING IN . NEW CUSTOMERS

At a very basic level, a gift card program has the

potential to bring in at least two customers to your store – the giver and the receiver,

either of which may have never thought to shop at

your business until they went to buy or spend the gift card. Studies show that 11% of gift card recipients receive gift cards for businesses they rarely or never visit. And

another 33% changed their purchasing behavior to

redeem the card.

4 ALIGN YOUR BRAND. WITH GIFTING OCCASIONS

The most popular time of year to buy gift cards is

during the holiday season (shocker). But people also

purchase gift cards for other special occasions such as

birthdays, weddings, showers and to show

appreciation for friends and colleagues. When you offer gift cards that match these occasions, people will start

to think of your business when they’re looking to buy

a gift.

If you’re just starting to offer gift cards, keep in mind that most customers won’t

immediately think of your business a place to buy them. But this can be quickly fixed by

communicating that information to shoppers. Marketing your gift card program can be as easy as putting up signage in your store, printing a message at the bottom of

your receipts or posting a reminder to social media.

If you don’t currently have the capability to offer your customers gift cards, visit www.emgway.com for

information on how you can get a gift card program started with EMG.