The Holiday Gift Card Season is underway and will intensify from Black Friday through Christmas. Merchants still have time to put best practices in place to maximize gift card sales, increase profits, and attract new customers. According to Blackhawk Network, consumers are planning to spend nearly half of their holiday budget on gift cards this year. And for the 14^th year in a row, gift cards are the most requested holiday gift per the National Retail Federation.

Here are Factor4’s Top 5 Tips:

1. Offer Gift Card Promotions 

More than 40% of shoppers report using promotions and discounts more often for all purchases this holiday season due to inflation. Value is a top consideration. Offering a gift card with purchase promotion provides two gifts for the price of one. For example, buy a $50 gift card, get a $10 gift card for free. Another popular promotion is a gift card sale. For example, Buy a $50 gift card for $45 or Buy a $100 gift card for $80. Gift card promotions can be offered in-store and online for maximum results.

2. Sell Gift Cards Online 

Holiday eCommerce is expected to grow by more than 15% this season. To expand sales and attract new customers, merchants must sell gift cards online. Factor4’s online gift card solution enables merchants to sell eGift and plastic gift cards just like the big brands but at an affordable price. Offering eGift cards provides the convenience that consumers desire and enables merchants to capture those last minute holiday sales. Merchants can offer plastic gift cards for customers who want to provide a tangible gift. Our fulfillment services make it easy for merchants to sell plastic cards online.

3. Display Gift Cards In-Store

One of the simplest ways to increase gift card sales is to display gift cards at the point-of-sale. Merchants should also include gift card signage at the entrance and throughout the store. Asking customers if they would like to add a gift card to their purchase will further increase sales.

4. Provide Gift Card Packaging

Gift card packaging makes gift cards complete gifts. 84% of consumers would purchase a gift card if it came with free packaging and 55% are more likely to buy a gift card if additional packaging is available for purchase.  Merchants will gain gift card sales by providing free packaging and can generate additional revenue by selling specialty packaging such as gift card bags. Free packaging pays for itself because it provides convenience and value.

5. Promote Gift Cards on all Marketing Communications

Merchants should include information about their gift cards (and gift card promotions) in all marketing communications including emails, social media, and mailers. Utilizing email and social media are free and can be used to drive customers to merchants’ online gift card page to generate more gift card sales. 

As always, Factor4 is available to help merchants implement these best practices. Factor4 offers numerous products and services to help our partners and merchants with all their holiday gift card needs. Those include Gift Card Fulfillment, Pre-Designed Holiday Gift Cards & Gift Card Holders, Same Day Shipping, and 24/7 Customer Support. Contact us at sales@factor4.com to learn more.