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Underused Advertising: Gift Cards Deliver

November 19, 2006

I was browsing through jewelry websites when I came across…Free Gift Certificate with every purchase. Gift certificates are now apart of the past and instead are still being used over Private Label Gift Cards. Why not encourage loyalty, boost traffic flow, and grow revenue, while providing a branding opportunity for your own jewelry store. It’s an immediate advertisement and a reminder of your existence.

Cardtrak states gift card sales hit $74 billion in 2006, compared to $64 billion in 2005. By 2007, the figure may top $90 billion. In addition according to the National Retail Federation:


  • More than two-thirds of consumers (75.5%) will buy a gift card this season.
  • More than one-half of consumers (52.3%) want to receive a gift card as a present.
  • The average consumer will spend (15.6%) of their holiday budget on gift cards.

How will you as a retailer benefit from spending the money to create your own Private Label Gift Card?


  1. The average consumer when making a jewelry purchase using their gift card spends more than the gift card amount.
  2. With gift cards, you can cut down on returns to the stores by not giving cash back.
  3. The cards can be refilled or exact amounts can be depleted. With gift certificates, any unused portion was generally given back as cash to the consumer.

  • The old adage, you have to spend money to make money is true but with today’s competitive markets, we must spend that money wisely. I don't mind spending the money if there is a worthwhile return. I’ve found that with Private Label Gift Cards, the returns are great, more than offsetting the cents, I will have spent per card. I also found that the cards help gauge my consumers buying habits, which will help me to personalize marketing campaigns to each consumer. If you know what your customer is looking for and offer them that product, chances are they will buy it from you, and appreciate your help in saving them time.

    Valutec is a company that I am familiar with and offers gift cards at a reasonable price. Take a look and if you need any more information on Private Label Gift Cards, I can email you an entire folder of zip files containing URL’s that talk about the benefits of Private Label Gift Cards.


    • Posted by Shanu Singh Guliani on November 19, 2006 | Comments (0)


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