How to Double your Retail Traffic

It was once limited to those who had no imagination. "Get them a gift certificate", was the cry heard from those that had no clue what to get someone.

Then they grew in popularity and they are extremely valuable to retailers. Here's why:

With a gift card, or gift certificate you have doubled the number of times someone will visit your store. The first trip to buy the gift often results in them buying something for themselves too.

Then the return trip by the recipients of the gift card often results in additional money being spent above and beyond the amount of the gift card.

(Plus there is also a percentage ranging from 15 to 45% of gift cards that never get redeemed, which is free money in the store owners pocket.)

For more on this subject, check out this report:

Cash, Gift Cards Most Popular Graduation Gifts
Bigger isn't always better when it comes to gift giving, especially as graduation season approaches.

According to the National Retail Federation's 2008 Graduation Consumer Intentions and Actions survey, conducted by BIGresearch, small-in-size items like gift cards (32.2 percent) and cash (56.8 percent) will remain the most popular graduation gifts, while traditional favorites like apparel (10.8 percent) and electronics (11.6 percent) will be given by fewer.

In addition to gifts, many consumers also plan to give a greeting card (35.6 percent) to graduates. According to the survey, Americans will spend $4.4 billion on graduation gifts this year with nearly one-third (32.4 percent) purchasing at least one gift this year.

The average consumer buying graduation gifts plans to give a gift to two graduates this year and will spend an average of $52.12 on each present. "Graduation is a time for celebration and there is no better way to wish a graduate luck in the next chapter of their life than by giving them a leg up financially," said NRF President and CEO Tracy Mullin.

"Cash or a gift card is the perfect gift for graduates who may be moving away from home, starting a new job, or heading to college in a few months." Parents and other family members not only support their graduate through their education, they will also spend the most on graduation gifts this year.

Consumers between the ages of 35-44 plan on spending an average of $106.79 on gifts, followed by those ages 45-54, who expect to spend an average of $101.38. (Source: National Retail Federation, 05/09/07)

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