Consumers Craving Gift Cards

The National Retail Federation tells us that gift cards are again finding favor with consumers who enjoy the flexibility of selecting their own merchandise at participating stores. The NRF says that gift cards are preferred by 55.2% of adults as a holiday gift. They choose this gift ahead of clothing, books, DVDs and electronics.

Christina Veiders, Managing Editor of Supermarket News, writes how retailers, realizing that the old idea still has some life, are using gift cards as not only a sensible gift idea, but also as a means of sales promotion. The technology behind gift cards takes an old idea, the gift certificate, and gives it new life because they are cheaper to produce, easier to track and provide a long lasting branding opportunity. Consumers love the convenience.

After taking a dip last year because of retail bankruptcies, gift cards are again experiencing growth. After market stabilization and some needed legislation, retailers are taking advantage of the trend for promotional purposes. Some grocery chains are offering savings on the grocery bill for the purchase of a certain value card. This makes a good tie-in to their loyalty card programs. Others are offering fuel discounts or tying using the cards as an incentive to buy certain items.

There are very few ideas in the business world that are truly win-win. For enhancing the customer experience and proving effective and efficient for retailers, the gift card seems to hit this lofty goal.