There’s no denying it: People enjoy giving and receiving gift cards. Gift cards are the top request on holiday wish lists, for eleven years running. They are the most popular gift for birthdays. By this year, the total volume of gift cards is expected to reach $160 billion. Given the increasing popularity of gift cards among consumers, businesses often use gift card promotions as a strategy to increase traffic and turn new customers into repeat customers. And there’s a lot of compelling evidence for why it works.

The Value of Gift Cards

The word “gift” is significant, as most people use gift cards to purchase something indulgent and out-of-the-ordinary, according to two researchers, Chelsea shoppingHelion and Thomas Gilovich, who study how people perceive and spend gift cards. According to their research, most people don’t spend gift cards on everyday items as it “feels like a misuse of the card.” At BirthdayPak, this sentiment rings true in our Facebook reviews from recipients who use words such as “a treat” and “a great gift” to describe receiving their gift cards to restaurants and high-end retailers.

According to a Prepaid Consumer Insights study, “recipients perceive gift cards to be significantly more valuable than a traditional gift.” So much so that they would prefer a gift card at a lower amount rather than a gift that was more expensive.

Why Gift Cards Are Good for Business

The numbers speak for themselves. According to a 2017 Consumer Insights study:

  • 44% will visit a store they wouldn’t have normally
  • 53% will visit a store more often
  • $38 average overspend (up $10 from 2016)
  • 75% have overspent the value of the card

In addition, studies referenced in this whitepaper “found that typical response rates to gift card promotions are four to seven times higher than typical response rates for coupon-based marketing.” And because gift card promotions are used less frequently than coupons, gift cards stand out among other forms of advertising. As BirthdayPak is sent via mail, it too sees higher than average response rates compared to traditional direct mail. Again, these points validate the perceived high value of gift cards.

How Does BirthdayPak Stack Up?


BirthdayPak mailed a staggering 788,000 pieces across the country in 2017 alone, and each BirthdayPak contained an average of $160 in gift cards. With such volume, BirthdayPak can attest to seeing similar trends as detailed in the surveys. While a variety of factors are considered when looking at the rate of return, many businesses of various sizes have seen a return on their investment. The retention rate is also very telling. In the restaurant category alone, the business partner retention rate is more than 82%, and other categories, such as day spas, come in at a close second.

Do you want to learn more about how gift card promotions can be a valuable source of revenue and drive business? Visit or call 888-544-3872.  Interested in an exciting franchise opportunity that provides work-life balance? Connect with us by visiting, calling 888-206-0083 or emailing