10 Reasons Gift Cards Are Popular Items Today

August 26, 2020

Businesses are constantly coming up with ways to improve their service to consumers, while, of course, ensuring sales and profits. One such strategy that has risen to popularity in recent years is the production and distribution of gift cards.

Gift cards serve as prepaid debit cards that contain funds for customers’ future use. Typically, a gift card can only be utilized at the shop that created it. Most businesses these days offer this option. There are even websites that give these away as prizes, from Target gift cards to ones that you can redeem at restaurants.

Here are five reasons why gift cards are popular items today:

  1. Support Favorite Stores

One of the primary driving forces behind the popularity of gift cards is these can help consumers show their support to their favorite brands. As mentioned above, gift cards may only be used in-store. When customers purchase them, they already have the intent of getting their goods and services from that same company.

For buyers, it can be a challenge to find a brand that embodies and promotes the same values. That’s why they’ll do all that they can to support their favorite store when they find it.

  1. Maximize Discounts And Other Perks

Another reason why consumers enjoy using gift cards is that these often come with exclusive perks, like discounts and other rewards. This is an ideal method for people who are trying to improve their credit scores since they can get more value for the money that they spend. Plus, it’s in cash, which means that you won’t accrue more debt.

These are the common types of discounts used for gift cards:

  • Contractual – This one involves deducting a percentage or set amount from the buyer’s total payables. For instance, some gift cards automatically entail a 20% discount once you’ve surpassed the minimum purchase price.
  • Order-Specific – Other gift cards also promote certain products or services by giving customers a discount when they buy these goods using this payment method.
  • Buy One, Get One – Another way that businesses clear out their inventory is to offer buy one, get one promos. This is useful when purchasing household necessities, such as soap, toothpaste, dishwashing liquid, and pantry stocks.
  • Free Shipping – Online shopping has also boomed in popularity these days. One downside, however, is that you have to pay a shipping or delivery fee for your purchases. Fortunately, you can eliminate this additional cost by finding a gift card that offers free shipping or, at the very least, a discount.
  1. Enjoy Payment Convenience

The best thing about a gift card is that it serves as an electronic wallet. With this, you won’t have to bring lots of cash. Instead, you can simply hand the card to the cashier and swipe your way through the transaction.

The evolution of the process also means that you no longer need the physical card per se. Some companies use apps where you have a digital wallet. Every time you complete a purchase, the amount gets deducted from your balance. This arrangement is ideal for online shopping and has significantly improved convenience for consumers in terms of payment methods.

  1. Shop With Safety And Limits

During the early days of the gift card industry, one of the main problems was that a buyer could lose the physical card as easily as cash. Misplacing the card without using the balance in it was as good as throwing away money since you weren’t able to enjoy the amount through the equivalent products and services.

Fortunately, most gift cards nowadays have found a solution to this issue. Some cards use additional authentication, such as connecting the card to your mobile number. Others use vouchers in-app, which minimizes the risk of losing your money.

There are bank-branded gift cards, which allow you to register with the issuer and get added protection from loss or theft. In the event that you lose your card, the funds can be frozen and replaced.

Gift cards also protect buyers from overspending because of their debit nature. These help you make prudent choices when shopping since you can make it a goal to stick to the inherent amount limit or, if you want to use up the entire balance, you can pay for the minimal excess in cash. 

Moreover, parents can use gift cards to teach their kids about how to handle financial responsibilities. They can use these to monitor their kids’ spending habits as well. 

  1. Give Freely And Without Worries

Even in today’s modern society, some people are still uncomfortable about giving cash as gifts because of the negative implications that the act entails. Gift cards can mitigate the risk of offending your family and friends since these are not considered as crass as money. Nonetheless, gift cards still offer recipients the same benefits as paying through cash.

Moreover, you can even make the act more personal by researching your loved one’s favorite store and giving them gift cards from that company. With this, you can be sure that they’ll enjoy using your gift and spend it on things that they truly like.

The following are great gift card sources that you should consider:

  • Restaurants – A significant advantage of giving gift cards from restaurants or cafes is that everybody needs to eat. You can treat your loved one to a couple of meals or drinks in their favorite establishment. 
  • Retailers – Retailers are also an excellent choice since they can use your gift to purchase necessities. There are a lot of companies to choose from, so you won’t have a problem with personalization.
  • Electronics Stores – This type of stores offer a multitude of products and services. If you have gamer or techie friends, you can surely find gift cards from electronics stores that they can use to buy gadgets or video games.
  • Beauty Shops – You may also have relatives or friends who are makeup enthusiasts. Most renowned beauty shops offer gift cards for their merchandise.

Benefits Of Gift Cards To Businesses

Meanwhile, the popularity of gift cards can also be attributed to businesses’ adoption of these items. Here are the reasons why these are valuable for companies, too:

  1. Foster Customer Loyalty

You can offer gift cards as rewards for current customers who spend a minimum amount in your store or those who refer their family and friends to your membership program. Another way to go about this is to raffle these off on your social media promos to improve follower engagement and encourage them to continue buying merchandise from you.

  1. Build Brand Awareness

You can also take advantage of gift cards for your marketing campaigns to build brand awareness. The key to this strategy is to make sure that you promote your gift cards and make them visible everywhere. This way, you build up the interest of potential customers, which will make them intrigued enough to try your products and services. 

Some strategies to level up your gift card campaigns include the following:

  • Inform Customers Directly – Promote your gift cards through your email and social media campaigns to let buyers know that you’re offering this type of payment option. You can even send them an exclusive gift card to make them feel that they’re valued as a loyal customer.
  • Maximize For Upselling – You can also use gift cards to upsell. One example is to offer a USD$20-gift card after they spend a certain amount. Most people will definitely want to reach the minimum price to avail of the opportunity. It’s like a rebate on their purchase, but you’ll be ensuring that they use it only in your store.
  • Enhance Its Design – An eye-catching gift card can help you increase your sales because it builds people’s curiosity with its visual appeal. Once you’ve piqued their interest, you can, then, market to them directly and have them purchase your cards.
  1. Boost Holiday Sales

Holidays, like Valentine’s and the Yuletide seasons, are crucial for businesses since these are times when consumers are more open about spending lavishly on gifts. Gift cards can help you boost your sales even more. With the right strategy, you can maximize their use to increase your profits during peak seasons.

  1. Improve Cash Flow 

Gift cards help with your company’s cash flow as well since consumers buy them for future use. This way, you’ll have their money already while still retaining your inventory of products and services.

  1. Monitor And Generate Valuable Data

Similar to how parents can monitor their kids’ spending with gift cards, business owners can also keep track of which items click the most with customers who buy gift cards. With this, you can understand your market and come up with more ways to serve them effectively.


Gift cards are useful for both consumers and companies. For the latter, these allow them to support their favorite shops, as well as enjoy discounts and other exclusive perks, among others. Businesses, on the other hand, can maximize gift cards for their marketing campaigns to foster customer loyalty and build brand awareness.

Leave a Reply

Your email address will not be published.