Gift card market is now thought to be worth in Australia about $2.5 billion a year, here are some interesting facts about store based gift cards, we found while going through a clients information.
About 40% of the people that redeemed gift cards spent more in the shop then the gift card was worth. Not surprising if you think about it as say someone has a $25 gift card, if they buy something worth $23 and walk out they lose $2. So there is a significant temptation for them to spend more and not lose anything.
Time to redeem
The average purchase seems to happen about three months later; most are spent by about 9 nine months, which is great for the cash flow of the merchant. Plus as GST is only claimable after redemption, which means GST is payable on the purchase almost six months later.
About 15% over the last 12 months have not been redeemed. The merchant has made a windfall here.
How to make gift cards.
It is a simple function, got to the main menu on the point of sale software and click on "Gift Vouchers."
Follow the instructions and out will come a gift voucher.