What is a gift card, who needs it and why?
Let’s see what a gift certificate is, or in other words, a gift card is a document that confirms that a certain amount has been deposited at the store’s cash desk. It is usually issued in the form of a plastic card, packed in a gift envelope or postcard and provided with instructions for use.
Anyone who has bought a gift card can transfer it to any other person. The one to whom the card was presented has the right to present it in the store and receive the goods in an amount equal to its value.
Buyer – a great solution for a gift
Thus, a gift card allows you to make a great gift even to a little familiar person. Instead of giving an “on-duty” souvenir or bypassing dozens of shops in search of the “same” thing, you can simply present the certificate by giving the choice of a particular gift to the recipient himself.
This makes the gift card the ideal solution in cases where you need to please someone not close, but respected. Thus, among individuals, such cards are very popular as gifts for state and professional holidays, and companies often hand them to employees as prizes.
Entrepreneur – fast growth working capital
For an entrepreneur, the sale of gift cards is also very profitable – mainly because it artificially increases the company’s working capital. In fact, the funds received from the sale of cards are an interest-free loan, which is given to the store by the buyers themselves.
In addition, part of the sold certificates remains unused. The money paid for them remains in the store, increasing its budget.
Marketing department – sales increase
Finally, gift cards are an extremely effective tool for increasing sales. By releasing them, the company automatically expands the circle of its customers: even those who are not interested in the product themselves buy gift certificates (for example, men buy certificates for lingerie).
In addition, the issuance of cards increases the average amount of the check, since the recipients of the cards, while purchasing them, willingly pay extra.