Is a gift card system really worth it for my business?

Investing in new gift card software deserves careful thought. Before buying an online gift card system, businesses want to be sure it's really worth it. Here's some help with that decision

An online gift card system is the perfect tool for anyone who wants to sell their digital and physical gift cards more effectively. Gift card software saves work and boosts sales – our customers tell us so again and again!

On average, customers who shop with gift cards spend around 16% more than customers who don't use gift cards. Especially in the middle of the pandemic, selling gift cards online was a great support for businesses of all sizes and industries. By offering online gift cards and coupons, many of our customers improved their cash flow and gave their own customers an additional way to support them, even during the lockdown. Online gift card sales in Germany grew by 140% compared to the previous year.

Still, we don't want to talk anyone into a product they won't benefit from. If you generate little revenue with your gift cards and hardly have any work because you sell so few, a gift card system may not be the best solution for you. But when does a gift card system pay off? Let's shed some light on that question.

There is no fixed number of gift cards sold above which a gift card system pays off

There's no one-size-fits-all answer. We can't name a number of gift cards sold per month above which a gift card system is definitely worth it. It differs from case to case and depends on several factors:

• How high is the average gift card value?
• Do you sell particularly many gift cards at certain times, such as before Christmas or for Mother's Day?
• Are there ways to increase the number of gift cards you sell?

To give you a better idea, here are a few examples:

Let's go through these examples. Even with the gurado Max plan at 89 euros a month, the hotel in the first example would spend only one percent of its gift card revenue on the gift card system. That's a share that's easy to absorb, don't you think?

But don't let the high gift card revenue in this example put you off if you sell far fewer gift cards yourself.
If you do the math, you'll quickly see that even the ice cream parlour in the second example would only have to spend six percent of its gift card revenue on the gurado Starter plan at 29 euros a month. Of course, here the question is more likely to arise: is it worth it?

In addition – at no extra cost – the ice cream parlour can also send coupons to its customers or even offer a small loyalty program with rechargeable digital customer cards for a few hundred of its most loyal customers. These tools can, for example, increase the average basket value, and the more the most loyal customers buy, the more they are rewarded.

The cost of the gift card system shouldn't be the only decision criterion

In the end, every business has to decide how much of its profit it wants to spend on a gift card system. Personally, we think six percent is still a very small share – especially as there's no commission. And don't just look at your current sales: think about how a gift card system can take them to the next level. Read our blog article "Seven tips for selling more gift cards online".

Especially when you sell a large number of gift cards, a gift card system saves a lot of time and work. That's thanks to automated gift card management: no more manual lists, and gift cards and invoices are sent out automatically.

What's more, selling online helps you reach new customers: people who don't live in your town and can't buy a gift card in person – or last-minute shoppers who realize on their grandmother's birthday that they don't have a present.

If you can't sell gift cards online, you miss out on these customers.

The many gift card design and customization options that a gift card system offers also make your gift cards more attractive. Read our article “How to design your gift cards the right way”.

On average, our customers see an increase in sales of around 30 percent by using the gift card system. That way, 50 gift cards sold quickly become 65.

You could rightly say: “If I only sell ten gift cards, three more a month won't make much difference.” But keep in mind that these 30 percent are only an average. Before you rule out a gift card system, you should ask yourself why your sales figures are low. Perhaps your gift card sales still have great potential and you can increase them by far more than 30 percent.

Gift card marketing increases your sales figures

Of course, you may be in an industry where gift cards simply don't make good presents. If not, though, it's worth taking a fresh look at your sales and marketing first.

• Do your customers even know that you also offer gift cards or tickets?
• Do you promote your services – and your gift cards in particular – enough?
• Is your gift card page prominently linked on your website?
• Do you use a newsletter and other emails to tell your customers about your gift cards or coupon campaigns?

The gurado blog will keep publishing articles on gift card marketing to help you sell more gift cards. Why not start with our article "How to draw attention to your gift card shop" or "Boost your gift card sales for Mother's Day”. Many of the tips given there work well for other occasions too.