Here’s How Gift Cards Increase Revenue

Gift Cards are powerful sales tools that drive revenue when used properly. If a merchant is just issuing gift cards as gifts when customers request them, then that merchant is missing out on opportunities to increase sales. One of the most successful gift card promotions is a Gift Card with Purchase program (GWP).

GWP Example: Spend $50 and get a $10 gift card to use towards a purchase of $30+ made within the next 30 days.

A Gift Card with Purchase program has the flexibility to bring revenue to a business when that business needs it most. For example, a restaurant can use GWP to bring customers in on slow nights or a retailer can use GWP to increase sales in slow months. It’s also a great way to generate sales of specific products. For example, a medical office or spa can use GWP to increase sales of skincare or health-related products. It’s effective for businesses that do not discount their products.

A Gift Card with Purchase program offers several benefits:

  • Has low start up costs since it’s not real money loaded onto the cards; it’s promotional dollars that only count when the gift cards are redeemed towards products/services. (customers actually pay for the GWP)
  • Increases average ticket because the threshold is set above a merchant’s average sale amount and customers will spend more to get the gift card.
  • Brings customers back to the business to make additional purchases.
  • Enables merchants to retain customers and build brand loyalty.
  • Can be implemented quickly by just ordering quick-ship cards and promoting GWP on social media, via email and with instore signage.

Factor4 has helped merchants of all sizes and types implement successful Gift Card with Purchase programs. Our GWP merchants generate a high average return of 30% to 40%. We help businesses structure the GWP that will work best for their specific business. To learn more or find out about our special pricing on quick-ship GWP Gift Cards, contact Factor4 at or 484-471-3963.

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