Why businesses are cycling back to gift cards after the pandemic
Why businesses are cycling back to gift cards after the pandemic
Gift card sales soared by 117% during the lockdown, according to a report by KPMG and our own experience tells us there has been a huge uptick in searches for staff gift cards rewards. Some people suggested gift cards were a temporary boom as employers struggled to reward, thank or recognise with traditional gifts during the midst of COVID-19 – but this isn’t the case. Why are gift cards so popular for businesses?
We asked our latest brand partner, Halfords to help shine a light on why gift cards are coming back at speed.
People want experiences – and to share them too.
While our shops are a place to come and experience the thrill of a new bike or finally getting that gadget for the long drives we can now do again – we are seeing a huge interest in gift cards given to employees to create experiences and memorable moments. That family bike ride to unwind and reconnect after a hard week. The MOT sorted that’s been weighing on your mind.
Experiences are often seen as jet skiing or racing around a track, but they can also mean small micro moments where the pains and stresses of the day to day are lifted. Outside of Halfords Gift Cards, we see this is true across all retailers. Gift cards give colleagues the freedom to spend money on something that matters. We all know the feeling that a cash bonus too often ends up disappearing into everyday expenditure, and gift cards stop this happening.
What is interesting is whether you give £10 or £100, staff can – and often do – top up their gift cards. Research has found that 66% are happy adding more cash to get the products they want.
Employees want to show they care about wellbeing
The cost-of-living crisis is leaving many of us struggling, particularly with everyday expenses such as travel and transport. Unfortunately, that leaves nothing left for any extra comforts that can make life worth living.
With a gift card you’re providing something more personal than cash, and you’re offering them the opportunity to spend on something that they not only want, but need. For people who get the Halfords Gift Card, that means things like MOT’s and Servicing for the cars, oil, bulbs, batteries, wiper blades, a bike, safety equipment for their bike or their children’s bike.
Gift cards are flexible for today’s workforce
In the past, gift cards were physical cards you’d issue to staff to use in-store. While this option remains popular, gift cards are increasingly issued online. Your customer or colleague will receive a gift card with a code and they can use the gift card online, or in-store by printing out the page or showing the customer service agent the eGift Card barcode on their phone.
This is ideal for an increasingly remote workforce who may have moved away, want to now shop online instead of instore, or if you simply want to give them a digital option as part of your CSR goals or because you no longer have an office presence.
Gift cards are a much wanted treat.
According to the Gift Card and Voucher Association, 98.6% of all recipients spend their gift card within a year. Compared to some gifts you may have received in the past that have ended up in landfill, that’s a real win all round. Giving a gift card means you can be sure everyone is enjoying your investment – and there’s no better feeling than that!
Get into gear and pick up a Lifestyle voucher for your team today – allowing them to redeem at Halfords on those essentials, or something fancy.
You can purchase today here.