According to studies, gift card sales topped $42 billion this year, a figure only poised to climb higher over time. What’s more—the average gift card recipient spends an average of $38 more than the amount of their gift. Gift cards (which can be digitally delivered, applied to a plastic card, or printed as a physical gift certificate) are a customizable, branded, cost-effective way to boost sales. Here are six unexpected benefits of gift cards and how Vagaro can help you take advantage of this retail gem!

1. Get New Customers


Did you know that 43% of people who receive gift cards say they went to a business they’d never visited before because of the gift card? Depending on the denomination, recipients may even make multiple visits to your business to use the balance.  That’s great news for you! But here’s a statistic that’s even better: 55% of new customers who visit your business because of a gift card will come back! While your original connection to the customer might start with a gift card, it doesn’t have to end there.

2. Build Your Brand


If you use your branded logos, images and graphics on your gift cards, you ensure your business will stay top-of-mind. When someone gives a gift card for your business, they become your unofficial “brand advocate.” Essentially, a gift certificate lets a new client try your business risk-free, because payment is already taken care of. You can also use gift cards for donations to build your local brand visibility. Think of the gift card as a powerful marketing tool that can also be printed out or electronically delivered directly to their inbox!

3. Create Marketing Opportunities


When someone purchases a gift card, you create two touchpoints: the giver and the receiver, who are both entered into your database for gift card delivery. That opens a new way for you to reach out with sales, special offers, promotions, and loyalty program updates using Vagaro’s email marketing tools suite. Gift cards are a great “anytime” upsell—they’re not just for last-minute holiday or birthday gifts. Whether the customer purchases the card to use themselves on a day they need a “pick-me-up” or gifts it to someone else, this strategy serves to strengthen loyalty and reach new clients. What could be better?

4. Reduce Fraud


Gift cards are electronically assigned and allow for partial redemption. Thus, balance remainders are stored digitally, eliminating cash backs. Vagaro’s gift card management reduces fraud risk by letting you see IDs assigned to gift cards, purchase location and date, buyer, and the original recipient. You’ll also be able to track the initial and remaining balance, card expiration, status, as well as any modifications. 

5. Generate Useful Data


When you run a gift card report, you’ll be able to see useful data that’ll help you better understand your market. Not only will you have an idea of how quickly or frequently a gift card recipient uses the balance, but you’ll also see whether it passed through more than one recipient. You can track products and services purchased and whether the full balance was used, helping you identify spending patterns. Which in turn, empowers you to serve customers more effectively.

6. Compete with National Stores


If you want to sell physical gift cards as well as digital cards (which can be customized and printed as gift certificates), you can order gift cards from the Vagaro Store. For these, you’ll also need either the USB card swiper or the bar code scanner. Having branded gift cards next to check-out is an easy upsell that’s cost-effective and doesn’t take up much space. Physical gift cards help you compete with chain stores and “gift card malls,” encouraging customers to shop local and support small business! The gift card that’s easiest to buy is what shoppers usually purchase. With that in mind, make sure that you’ve got gift cards listed in your online store!

Customized, Branded, Cost-Effective: Vagaro Gift Cards


Gift cards (digital or physical) do double-duty as an effective marketing tool that helps you build your brand, attract new customers, and increase sales. They also offer convenience, flexibility, and easy payment. They’re simple to set up and scalable for any size business. Personalized Vagaro gift cards are integrated with our marketing tools and provide both electronic and social integrations. So, if you’re looking to increase your overall cash flow, build brand recognition, and get new customers in your doors, gift cards are the answer! The question is, what are you waiting for?

Gift cards, here I come!


Header Image: Mia Montemayor via Vagaro

Gift Card icon by Icons8