Why Every Retailer Needs a Gift Card Program

A gift card program isn’t just a nice-to-have—it’s a powerful tool for driving sales, attracting new customers, and building brand loyalty. If you haven’t launched one yet, now’s the perfect time. Gift cards go beyond convenience; they’re a proven growth accelerator, helping retailers boost revenue, improve cash flow, and expand their customer base.

Still wondering if a gift card program is worth it? Let’s explore why it’s an absolute must for every retailer.

1. They drive higher spending 💸

One of the biggest reasons to offer gift cards? Customers spend more when using them. On average, shoppers spend 20-30% more than the value of their gift card. That means every gift card sale leads to increased basket sizes and higher revenue.

Plus, when customers don’t fully redeem a gift card in one go, they’re more likely to return for another visit—giving you multiple chances to upsell.

2. The bring in new customers 🚀

A gift card isn’t just a purchase—it’s an invitation. When someone buys a gift card, they’re introducing your brand to a new customer who may not have shopped with you before. And the impact is massive:

🔹 63% of gift card recipients are introduced to a brand they haven’t tried before. 
🔹 22% of those recipients become regular customers of the brand. 

Without a gift card program, you’re missing out on a steady stream of new shoppers walking through your (physical or digital) doors.

3. They create a B2B revenue stream 🎯

Retailers often focus on consumer sales, but corporate gift cards are a goldmine. Businesses buy gift cards in bulk for employee incentives, customer rewards, and loyalty programs—representing a whole new revenue channel.

Corporate gift card sales:
✔️ Provide high-volume orders with minimal marketing effort
✔️ Tap into repeat business, as companies regularly purchase gift cards
✔️ Expand your brand reach into new customer bases through workplace incentives

If your brand isn’t part of the corporate rewards landscape [brand hub page], you’re leaving easy money on the table.

4. They improve cash flow 💰

With traditional retail sales, customers pay at checkout. But with gift cards, you get paid upfront, regardless of when (or if) the card is redeemed. That means instant revenue, which can be reinvested into marketing, stock, or business growth.

Even better? Some gift cards never get fully redeemed, creating extra margin for your business without any additional costs.

5. They build brand loyalty 😍

Gift cards don’t just bring in new customers—they also keep existing ones engaged. Many shoppers buy gift cards for themselves as a way to budget their spending, especially for brands they love. A digital gift card, stored in a mobile wallet, acts as a constant reminder of your brand.

And when a customer redeems a gift card, they’re likely to:
🔄 Return to your store
🛍 Spend more than the card’s value
📢 Recommend your brand to others

Gift cards turn one-time shoppers into repeat customers—and repeat customers into brand advocates.

6. They're expected by customers ✅

Today’s shoppers expect brands to offer gift cards. Whether they’re buying last-minute gifts, looking for flexible payment options, or spending reward points, gift cards are a modern retail essential.

Gift cards aren't optional, they're essential

A gift card program isn’t just another product in your inventory. It’s a sales driver, a customer acquisition tool, and a cash flow booster all in one. Whether you operate online, in-store, or both, gift cards create new revenue streams and keep your brand front of mind.

If you don’t have a gift card program yet, now’s the time to start. And if you’re not sure where to begin, Jigsaw can help.

🚀 Let’s chat about launching a gift card program that drives real results for your business.