How to Use Gift Cards to Boost Holiday Sales and Cash Flow

The holiday season brings higher foot traffic, stronger buying intent, and a surge in gifting. For small and medium businesses, this period also requires careful cash flow planning and smart revenue strategies. Gift cards offer a reliable and scalable way to generate upfront revenue, attract new customers, and encourage repeat visits well beyond the holiday rush.

For businesses using POS systems such as Clover or Square, a well-executed gift card program becomes a natural extension of everyday sales while strengthening long term customer relationships.

Why Gift Cards Perform Exceptionally Well During Holidays

Holiday shoppers actively look for flexible and thoughtful gifting options. Gift cards meet this need while delivering a clear business impact.

Businesses using gift cards typically see
• A 25% increase in new customers
• A 35% overspend beyond the card value
• A 20% uplift in seasonal revenue

This combination supports immediate sales goals while setting the foundation for future growth.

Strengthen Cash Flow When It Matters Most

Gift cards generate revenue at the time of purchase, even though redemption happens later. This early inflow supports inventory planning, staffing decisions, and operational expenses during peak season. With funds arriving before the service or product is delivered, businesses gain stability and flexibility at a critical time of year.

At the same time, every gift card extends brand visibility as customers share your business with friends, family, and colleagues.

Encourage Repeat Visits and Long-Term Retention

Customers who receive gift cards tend to return more frequently. Many businesses experience a 20 to 25 percent increase in repeat visits from gift card users, driven by positive first impressions and ease of redemption.

Each return visit reinforces brand familiarity and increases the likelihood of continued engagement, turning a holiday gift into an ongoing customer relationship.

Increase Average Order Value Naturally

Gift card redemptions often lead to higher ticket sizes. Customers commonly add items or upgrades beyond the original gift card amount, resulting in a 30 to 40 percent increase in total spend.

This behavior raises revenue per transaction without requiring additional promotions or discounts.

Attract New Customers Through Gifting

Gift cards act as personal recommendations. Up to 70% of recipients visit a business they may not have discovered on their own. These first time visits open the door to loyalty programs, repeat purchases, and word of mouth referrals, all of which are especially valuable during competitive holiday periods.

Plastic Gift Cards for In Store Engagement

Custom branded plastic gift cards work especially well for physical locations and multi store businesses.

They allow customers to
• Purchase and redeem cards across all participating locations
• Recognize and remember your brand through consistent design
• Trust secure balance tracking with real time updates and fraud protection

This physical presence keeps your brand visible and encourages in store return visits.

Digital Gift Cards for Speed and Convenience

Digital gift cards align perfectly with modern shopping habits, particularly during last minute holiday purchases.

Customers appreciate the ability to buy and send cards instantly, whether online or in store. Businesses benefit from faster setup, no physical inventory, and wider reach across digital channels.

Digital gift cards support both acquisition and retention while simplifying operations.

Centralized Reporting for Smarter Decisions

Managing gift cards becomes significantly easier with unified reporting.

With RewardUp, businesses gain real time visibility into gift card sales, redemptions, and outstanding balances across all locations and online channels. Detailed insights reveal purchasing trends, peak sales periods, and customer engagement patterns, helping teams refine promotions and maximize revenue.

Start Offering Digital Gift Cards Today

Gift cards support holiday sales, stabilize cash flow, and build lasting customer relationships. With fast setup, seamless POS integration, and clear reporting, they become one of the most effective tools for seasonal growth.

Start offering digital gift cards today
Set up in minutes and grow loyalty for a lifetime with RewardUp.

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