Gift cards are a huge business. In fact, the global gift card market has an estimated value of $845.39 Billion for 2022 and is projected to hit $2021.64 Billion by 2027. The question is, why should you offer gift cards, and how can they benefit your salon or spa?
There are plenty of reasons why you should be selling gift cards. They offer easy and convenient gift ideas for your clients and can help your salon or spa by supporting and advertising your business without much effort. And, assuming you set the funds aside until the cards are redeemed, they also offer a financial cushion. Your business can earn interest on those funds and use them as collateral when applying for a loan.
In case that’s not enough to convince you to offer gift cards at your salon or spa, consider these interesting stats:
Gift Cards are a Popular Gift
Approximately 93% of Americans have given or received a gift card at some point in their lives.
Younger Shoppers Account for 65% of Gift Card Purchases
Millennials make up 37% of all gift card purchases, while Gen-Xers follow with 28%.
73% Purchase Gift Cards For Close Family Members
Gift cards are great gifts for anyone, but it makes sense that family members top the list, followed by close friends.
Gift Cards are the Most Requested Holiday Gift
The December holidays are when the most gift cards are sold, followed by birthdays and Mother’s Day. 50% of all gift cards are for Christmas, with the average holiday shopper spending over $210 on gift cards. January is the top month for gift card redemption, extending the holiday shopping season for you.
Your Business Remains in Sight
Most consumers store their gift cards in their wallets, which keeps your business on their minds whenever they open it.
Unredeemed Cards Hold a Value
Unused gift cards account for billions of dollars each year. On average, American households have $300 in unused gift cards. 51% forget to redeem their gift cards, while 45% have not used the entire amount available. If roughly half of all gift cards remain used or partially used, that means there’s a cash surplus that stays in your business.
59% – 72% Exceed the Value of the Gift Card When Shopping
When shoppers redeem their gift cards, it’s not uncommon for them to spend 20-50% beyond the card’s value, which translates to more sales for your business.
Sources: QuerySprout, Research & Markets, Revel, GiftCards
So, are you ready to start offering gift cards for your salon or spa?
Leave a Reply