They are a licence to shop, a ticket to browse and a promise - you acquire the perfect gift
Value Loaded Gift Cards are accepted by Retailers because they…
- can be used to track and program data
- give improved sales and insight into a customer’s shopping behaviour
- encourage customers into a store they would not normally enter
- are more likely to prompt spending to a higher value, e.g. 30% in USA
- are a sales item on display (in it’s own right)
- actually look like a product, so people who would normally never buy a voucher will buy a gift card
- give increased loyaltiy , guarantee future sales and represent a guaranteed return on investment
- can be marketed at remote or host locations
- increase sales to retailers, yet cost of handling are reduced
- have changed customers’ buying habits for the better
- are now regarded by retailers as a core product line
- result in fewer returns of items purchased
- can lead to customer spending additional funds to purchase the item they require
- are much quicker and convenient to transact at POS
Value Loaded Gift Cards are approved by Customers because they…
- are far more convenient - no purchasing the incorrect gift
- are an accepted medium in large chains
- can be used as ordinary debit cards
- are spender friendly - money not spent stays on the card
- are perceived to be more sophisticated and acceptable
- simplify gift giving
- increase customer satisfaction because they can purchase the item they like
- are easy to manage - credit card size, and more durable than paper
- easier to carry in your wallet or purse
Value Loaded Gift Cards market information…
Are not subject to fraud and can be displayed, because they hold no value until they are loaded can be cancelled promptly if lost.
Value Loaded Gift Cards are secure because they…
- Liquor Land NZ sales increased dramatically when they sold 10,000 Gift Cards in the first two weeks of release, which was 7 times more than their voucher sales
- Gift Card sales have grown by 22% pa in the USA since 1995
- about 27% of Gift Card sales are from host outlets in the USA
- average value loaded in Australia is $80
- 70% use the entire card value
- 30% use the entire card value with a month
- only 10% of card value is not redeemed on average
- over 80% discard their Gift Card when its value is depleted
- Men spend 25% more than Women
- Women are more likely to buy a Gift Card
- Cost in USA - $5.95 per card for value upto $300, $7.95 per card for over $300
- 48 of the top 50 retailers in the USA offer Gift Cards
- In the USA approx 60% - 6 out of 10 people purchased or received a Gift Card in 2003, up 22% on 2002
- Customers understand remaining value on card is not redeemable for cash
Gift Cards versus Paper Vouchers…
Vouchers…
- must be kept under lock & key
- are effectively cheque books in the hands of criminals
- can be duplicated and are hard to cancel
- require far more security precautions and paper work
- are time consuming to handle and result in “less than value” purchases
- are seen as “old hat” and not sophisticated
- can not be marketed at remote or host locations