4 Ways Gift Cards Can Help Businesses Overcome Economic Challenges

Restaurants and retailers have learned dozens of lessons from the challenges of the past few years. Whether it was a pandemic, inflation, or other economic challenges, owners had to find new and creative ways to navigate consumer spending habits. One important takeaway from these challenges is that gift cards are an excellent way to give merchants a boost in their revenue during challenging economic times. 

Here are a few insights that highlight how gift cards remain a reliable way for businesses to generate revenue despite economic uncertainty: 

  • 73% of consumers plan on maintaining their same gift card purchasing habits into 2022. (Source)
  • Only 23% of consumers said they are purchasing fewer gift cards due to inflation. (Source
  • 17% of consumers have purchased gift cards to counteract higher prices in 2022. (Source)

4 Ways Gift Cards Can Help Businesses During Economic Challenges

As inflation continues to hit consumers, they are looking for ways to get more for less, and it’s time for businesses to take notice. Here are four specific ways that gift cards provide a stable way to generate revenue in challenging economic times: 

1. Gift Cards Provide a Way to Generate More Loyalty with Customers
Having gift cards available allows your loyal customers to easily support your business during seasons of economic uncertainty. They can purchase a gift card now and use it for their holiday shopping, give it to a loved one, or give it to someone they know who is struggling due to layoffs. 

Your business can further encourage customer loyalty by offering discounts to gift card holders. This is a valuable incentive for those who are looking to use gift cards to offset rising costs. 

2. Gift Cards Increase Brand Awareness & Keep Your Business Top-of-Mind
When your gift cards and gift card presenters are designed in alignment with your brand, they can be used as an effective marketing tool. It’s one more way to get your brand and logo out into the world, and it gives businesses an additional product to market to customers. 

It’s also a valuable way to keep your business top-of-mind for consumers. There are many scenarios in which consumers are wondering where to eat or shop on a given weekend. Having your branded gift card in their wallet can push an unsure customer into choosing your business over another.

3. Customers Usually Spend More Than the Gift Card Amount
Think about the last time that you spent a gift card. Did you spend only what was on your card and not a dollar more? The answer is likely no. The item you wanted may have cost more, or you saw other products you liked as you browsed the menu, the store, or the website.

As merchants began promoting gift card sales in the early days of the pandemic, customers began spending those cards over the next several months. As customers redeemed their gifts, many of them spent more than their card’s amount, increasing revenue further for a longer period of time.

4. Gift Cards Help You Attract New Customers
Possibly one of the most incredible benefits of gift card giving is that your customers can share your business with their friends and family. We all have that one place that we know our parents, siblings, or friends would absolutely love, and how amazing is it that we can share that love with a gift card? And just think, that gift card recipient may just become your next loyal patron.

Whether it’s a pandemic, inflation, or recession, your business will face difficult economic seasons. Gift cards provide a way to overcome those challenges and generate revenue even when customers aren’t spending like they normally do. Contact us today to discuss gift card services and solutions.