Customers passing through your liquor store POS (point of sale) are using a growing list of payment types to make their purchases. One option that you can’t overlook is the popularity of gift cards. Supported by the right gift card solution, convenient and easy-to-use gift cards are a growing choice among consumers. The National Retail Federation (NRF) Annual Holiday Spending Survey found 61% of consumers request gift cards as gifts, the most popular item on Americans’ wish lists for 11 years in a row.
Gift cards are especially popular among the millennial generation. A recent study by the Wharton Schools’ Baker Retailing Center and The NPD Group found the share of wallet of gift cards is higher among millennials than other age group, probably because they appeal to their sense of practicality and provide convenience.
4 Reasons Why Your Liquor Store POS Should Support a Gift Card Solution
With the millennial generation now the largest demographic of consumers in the U.S. and with their spending power continuing to increase, meeting their demand for gift cards — as well as the demand for gift cards from shoppers in other age groups — makes good business sense. Consider these four reasons:
- Gift cards can be used as an alternative form of payment
According to the Center for Generational Kinetics, about 5 million millennials don’t have a checking account because of their “distrust for banks.” A gift card gives them the option to carry and pay with a card instead of using cash.
- Gift cards are purchased for self-use as well as gifting
Gift cards aren’t always gifts. Millennials and other cost-conscious consumers may take advantage of promotions associated with gift cards or deals that give them a “bonus” card when making a gift card purchase. These incentives enable consumers to save money on future purchases.
- Gift cards can work hand-in-hand with your loyalty program
Gift cards are a great reward for your loyalty program members and one that will pay off for you in the long run. Gift cards encourage shoppers to return to your store, and because statistics show consumers usually spend more than the value of the gift card when they redeem it, they can lead to additional sales.
- E-gift card use is growing.
According to research by the Retail Gift Card Association (RGCA), consumers are increasing interested in e-gift cards. Millennials and other tech-savvy customers can incorporate digital gift cards into their mobile wallets so they can use their smartphones to make payments. This aligns with millennials’ preference for mobile technologies that allow them to access deals and offers anytime, anywhere — without having to remember a plastic card.
The rise of the millennial generation as an economic force has brought about new trends and changes that retailers need to keep pace with to be successful into the future. The growing demand for gift cards, including gift cards from boutique and niche retailers, is something you can’t overlook. Ensure your liquor store POS and gift card solution will let you meet this demand and stay competitive.
Gift card solution integration can be a challenge, however, so be sure to partner with a trusted solution provider, with experience with liquor store POS, that can help you put the right system and processes in place to benefit your business and to meet customer expectations.