Gift cards are have been adopted by many businesses as a way to boost revenue and foster customer relationship within the company. If a company sells Gift Cards to its customers, it means that the customers are being encouraged to patronize more and also, invite their family and friends by gifting them with the same Gift Card.
Gift Cards have so many benefits over the conventional cash system and also the credit and prepaid cards. With Gift Cards, you would avoid unnecessary bank charges while enjoying some discounts that may apply for using the Gift Card.
Companies brand their Gift Cards in numerous monetary amounts to giving room for affordability. Imagine selling only $200 Gift Cards in your company, what if a majority of your customers can’t afford it?
This is the reason many Gift Cards are branded in various amounts so that everyone can have a taste of the benefits of Gift Cards. However, statistically, there is an average amount of Gift Card that people often buy and use. This is the bone of contention in this article.
Why Do Businesses Sell Gift Card?
1. Boost Brand Awareness
The logo of your business on the card is enough advertisement to boost your brand, even without the media, your brand is being advertised. When people buy your business Gift Card and send it to friends anf family, they are additionally creating awareness If such business indirectly.
2. Increase Revenue by Selling and Accepting Gift Cards
Even though gift cards are often set to a distinct amount, many customers end up spending more than the Gift Card can buy. They enter the shop to buy a specific thing but as they examine the shop, they may find some other new things that can catch their attention.
3. Fraud Should be Reduced
The use of a gift card enables partial redemption, while the rest of the balance remains on the gift card and no cash backs. You can also use gift cards for store credit, which helps to reduce fraud caused by customers attempting to make expired returns for cash.
What is the Average Amount of Gift Card?
Given that businesses issue their Gift Cards on numerous monetary amounts to make it affordable to all, there is an amount that people tend to buy on average. This is the amount of Gift Cards that these companies focus on and issue them more often than the others.
It is glaring that for most businesses, $100 is the average amount of Gift Card customers buy while their customers spend $213 on the average with their Gift Card