4 Reasons to Offer Gift Cards to Your Customers

2 min read

Gift cards are the #1 most requested gift during the holiday season.

With over 83% of consumers purchasing gift cards in 2021, they truly make the perfect gift for any occasion; especially when you are not sure what to get someone or do not want to disappoint.

Yet, a large number of small businesses in Canada do not offer gift cards to their customers.

How to offer gift cards for your business

  1. Choose an appropriate gift card system
  2. Buy wholesale gift cards to resell to customers
  3. Follow government guidelines and regulations
  4. Provide training to your employees
  5. Promote gift your cards to customers

Find out more details from our in-depth guide to gift card programs for small business.

To prepare for an upcoming holiday season, here are the top 4 reasons why you should offer gift cards for your business today:

Why offer gift cards for your business


1. Boost sales

The great thing about gift card sales is they are guaranteed sales. They are paid for in advance of an actual inventory purchase.

And studies show that shoppers will spend 83% more than the original gift card value. In fact, 72% of customers spend more than twice the value of their gift cards when shopping.

As well, they are almost always non-refundable meaning your business has more cash flow to cover everyday operating expenses.


2. Generate traffic

Gift cards also guarantee at least 2 customer interactions: the person who buys the gift card and the person who spend it.

And most Canadians don’t shop alone, so if a gift card recipient comes into your store, they’ll likely bring a friend. Not to mention, eGift card recipients will visit your online shop at least a few times; once to activate their card, another to check their balance, and at least once to browse your site and check out your products and services.

Gift cards allow your business to bring more customers in by catering to their wants.


3. Increase brand awareness and loyalty

What’s a better more inexpensive way to advertise your brand than by selling wallet-sized billboards. Gift cards are constant reminders to visit your business and put “free” money to use.

And with gift cards being the #1 most requested gift, you want people who are loyal to your business to have more reasons and more opportunities to shop at your store. Gift cards also generate more repeat business.

55% of consumers use their gift cards more than once which means more foot traffic and more upselling opportunities.


4. Reduce fraud

First, cardholder information is far less likely to be stolen when a purchase is made using a gift card.

As well, gift cards cannot be duplicated and forged like paper gift certificates. This means there is less fraudulent activity when more gift cards are sold. Not to mention, there is little to no risk of a chargeback or fraudulent return as any return will go directly back on the gift card to be used in store.

Since gift cards are almost always non-refundable, someone won’t be returning their gift for cashback either.


Read more tips to boost your retail sales and build brand loyalty.


Zakry Chami
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