DataCandy Blog

The Holiday Gift Card Rush: Your Fall Prep Guide

Written by Michelle Wong | Oct 10, 2025 1:59:59 PM

The holiday season is the busiest time of year for retailers, and gift cards are at the heart of it. It’s easily accessible for both the giver and the receiver and let’s be real, it’s a great gift because it allows the recipient to purchase whatever they want or need from the particular retailer—no headaches attached. 

In fact, year after year, gift cards top the list of most-requested holiday presents. What does that mean? It’s a golden opportunity to attract new customers, build loyalty, and keep revenue flowing well into the new year.

So how can your business prepare way ahead of time to maximize the holiday gift card rush? Let’s break it down.

 

Why Gift Cards Matter (Even More) During the Holidays

Gift cards aren’t just convenient stocking stuffers—they’re revenue multipliers. Here’s why:

  • Immediate cash flow
    • Gift card purchases bring in revenue before the product or service is even redeemed. During the holiday season, that revenue goes up even more—gift card sales tend to be higher in the months leading up to the holidays.
  • Higher spend
    • 61% of customers often spend more than the value of the gift card, increasing your average order value. Now that the volume of gift cards purchased have increased during the holiday period, the volume of customers that spend more than the value of the gift card also increases. Result? More revenue again. 
  • Customer acquisition
    • Given the rising popularity of gift cards as a holiday gift for a multitude of reasons (i.e. less stressful than choosing a physical gift, helps subsidize household expenditure), it introduces your brand to a potential new customer who may have never walked through your doors otherwise.
  • Extended loyalty
    • When tied to a rewards program, gift card use encourages repeat visits long after the holiday season.

 

TL;DR: The reasons why gift cards matter are amplified during the holiday seasons. More people buying gift cards = more people using gift cards and spending more.

Shoppers are planning earlier each year, with many starting their holiday purchases as soon as October. So, why wait until the rush when you can launch your gift card campaigns earlier?

 

 

 

How to Get Ahead of the Holidays 

The holiday gift card rush often peaks on December 23rd, but last-minute planning leads to missed opportunities. So if you start promoting early, you’re top of mind when people come around to buying gifts. 

 

1. Offer Early Bird Promotions

Give your customers a reason to buy early! Early bird offers like “Buy a $100 gift card, get a $10 bonus gift card for yourself” drive sales and provide an incentive to purchase. 

Those gift card deals you see during Black Friday and Cyber Monday? 

 

 

Why not start easing those in before the shopping craze begins? You’ll be one step earlier, allowing you to secure those sales ahead of other businesses.   

 

2. Bundle Loyalty With Gift Cards

Have a loyalty program? Perfect. Now you have another way to incentivize a gift card purchase. Award bonus points when customers buy gift cards e.g. “Buy 2 gift cards worth $50 or more each and earn an extra 500 points!”. 

And here’s where you can really play with the marketing: frame it as holiday spending that pays you back. Customers are already buying gift cards for friends and family—position the bonus points as “free money” they’ll get to use in the future, turning a necessary purchase into clear value and savings down the line. 

With DataCandy, you can integrate gift card purchases into your loyalty strategy to drive retention. 

 

3. Optimize the In-Store and Online Experience

During the holiday rush, convenience is everything. Make sure your customers can purchase gift cards seamlessly, whether they’re shopping in-store or online. Although 93% of Canadians express a preference for digital gift cards due to immediate delivery and ease of use, gift card sales from DataCandy clients show a stronger customer preference for in-store gift card purchases (86%) and physical gift cards (86%). The option of both physical and digital gift cards lets you cater to a broader customer base.  

  • In-store
    • Position gift cards near the checkout counter to capture impulse buys. Consider using eye-catching displays and signage to draw attention (e.g. floor-standing displays or countertop racks).
  • Online
    • Offer digital gift cards that can be purchased and delivered instantly. Perfect for last-minute shoppers and those seeking the convenience of online transactions. 

Bonus Tip: Enable customers to store and redeem gift cards directly from their smartphone wallet. A frictionless mobile experience makes gift cards easier to buy, track, and spend. 

 

4. Plan Post-Holiday Promotions

The true value of holiday gift cards extends into January and beyond. When customers redeem their cards, it’s the perfect opportunity to drive repeat visits.

 

Final Thoughts

The gift card rush is one of the most reliable ways to boost revenue during the busiest shopping season of the year. But with the right preparation, it can also become a long-term loyalty driver. By promoting early, bundling gift cards with loyalty rewards, and planning for post-holiday engagement, your business can capture short-term sales and lay the groundwork for lasting customer relationships.