Why sell gift cards?
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Open doors to new customers |
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Retention! Retention! Retention! |
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Cardholders expect retailers to offer gift cards |
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Increase profits |
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If you don’t sell gift cards to your customers others will sell them and will take your business with them |
You might not know...
Gift Cards; not just for the Holiday Season
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Birthdays are the #1 occasion for gift card purchase |
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The “Spring Holiday Season” includes Mother’s Day, Father’s Day and Graduations |
Gift cards capitalize on impulse purchases
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Switching from paper certificates to plastic cards can result in 200% growth in related sales because they are more visible and widely publicized everywhere. |
Gift card facts and statistics
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TenderCard processed gift and loyalty programs for over 36,000 merchants in 2007 |
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In 2007 TenderCard processed approximately 2,000,000 transactions representing almost $100,000,000 in issued and redeemed cards |
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51% of consumers who receive gift cards spend more than the card’s initial value National Retail Federation (NRF) |
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53% of consumers want a gift card as a holiday gift Forrester Research |
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Gift cards make up 31.3% of graduation presents National Retail Federation (NRF) |
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The gift card industry has grown to be a $35.5 billion industry and will surpass $5 billion by 2010 MarketResearch.com (“Packaged Facts” report 2006) |
Loyalty facts and statistics
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Consumer spending is 6% higher for companies that offer loyalty card programs (Loyalty Monitor study by Total Research Corp. and Custom Marketing Corp) |
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Increase average purchase and visit frequency by over 25% |
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Gift and loyalty can be on one card |
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Track purchase behavior for marketing purposes |
Put stored value to work...
Merchant benefits
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Increased sales |
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Retain full face value – no cash back |
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Consumers often spend more than the card’s face value |
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Merchant retains any unused balance (subject to state laws) |
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Security |
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 Cards have no value until activated |
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 Plastic cards are harder to counterfeit than paper certificates |
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Reduced costs |
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 More efficient and cost-effective than paper |
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No “back room” accounting |
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 Reports generated electronically by TenderCard |
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