Gift giving is a universal way to show interest, appreciation and gratitude as well as strength bonds with others. This article has shown the psychological benefit from gift giving and analyzes why people prefer the gift card rather than gift in kind. This is why the Gift Market grows every year with double digit. Retailers, if not yet started their gift business, should start Now. This document has shown the business benefits can be enjoyed by Retailers to start their gift card program. And more importantly, Gift Card is also the way for Retailer to convey their “Love” message to all of their beloved customers.

1. CERIDIAN STORED VALUE SOLUTION
Why people
love gift
giving
“Better to give than to receive, we are improving our
psychological health and inner beauty”
DOLOR SET AMET

2. C HAPTER 1
Why people love gift
giving
“Giving a gift is a universal way to show interest,
appreciation, and gratitude, as well as strengthen
bonds with others”

3. Psychology behind Gift
Giving
“ There is an enormous sense of satisfaction when seeing the ex-
pression on the face of someone you’ve given a gift to. A way to
express feelings, giving reinforces
Smiling from the heart no matter give or take
Receiving the most awaited gift from somebody
2

4. Why people prefer gift in cash
rather than in kind

5. Economic theory on gift
giving This is why Gift Card Market is growing every year
- “People prefer to receive gift card to buy what he/she
really wants”
“According to the theory of consumer choice the con-
sumer (i.e., the receiver of the gift) knows more about
what will maximize their utility than the gift giver does.
Accordingly, if
we really care The girl cries because she receive the gift
which is not she wants
about allowing
the receiver of
People who receive the gift card will have get more
the gift’s ability happiness than receiving the hard gift because the
to maximize receiver will 100% know what they really love.
their utility, we
should only
give gift card as
cash
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6. Empirical research on customer preference on Gift cards and Gift in kind
How important are each of the following Extremely
considerations when buying a gift card? Important
The ability to let the gift receiver select something they 91%
want
The ability for a gift receiver to select the size, color or 84%
model of choice
The ability to have an alternative if I can’t decide what 76%
to get
The ability to give something other than cash or check 73%
The ability to provide a special treat such as a meal or a 68%
movie
The ability to give a last minute gift 63%
Over 91% of customer want to give their gift receiver to
pick what they really want and wider of choices.

7. C HAPTER 2
Why
Retailers
need to sell
Gift Card “Retailers offer gift cards because they
are profitable product and consumers
love to buy them”

8. S ECTION 1
Gift Card business to Re- Bespoke the brand image by featuring the merchant logo
tailer
S UM M AR IE S
1. Steady Sales - All Year Around
2. Long Term Business Growth
Selling
3. Customer Acquisition & Cross
4. Brand Recognition and Loyalty
5. Unbeatable ROI
7

9. Gift Cards Not only Increase Sales But Also Steady Sales
Sales Increase not only during holiday season but year
around
More Steady Sales - People Prepaid for Products
Cards for “Birthday”; “Anniversaries” ; “Baby Showers” ;
“Graduations” the list go on
Lessens the validity cash between months
8

10. Long Term Growth Engine
Immediate and long term effect of Gift Card Program
Sales Growth Engine - Long Term Effect
1st year : Avg 350% growth ;
Unlike other retail product with the nature of short life cycle, Gift Card are 2nd year : Avg 200% growth ;
a growth engine for many retailers 5th year : CAGR 67%
=> Gift Card Product Line would be 2%~7% of total sales
9

11. The most cost effective tool for cross selling and customer acquisition
Gift Card is powerful for up-sell and cross-sell
The most Cost effective tools for Customer Ac-
quisition
80% of gift card recipients have received the card to a store
where they never shopped, 1/3 of those will become repeat
shopper
10

12. Brand Recognition and Brand Loyalty
Bespoke the brand image by featuring the merchant logo
Continuously remind customer of your
Brand
Type to enter text
They are a walking billboard carried in wallets for everyone to see
Customer keep return visiting to your store
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13. Revenue Stream of Gift Card
Lift your sales
Unbeatable ROI
Impressive ROI for Gift Card Program
Typically, customer purchase goods worth 80%
more than value of Gift Card
Breakage and Interest Earning
Typical Cost : <1% of total sales
Total ROI : Avg > 750
Breakage : Avg 2%~8%
Interest Earning : 30 days to 60 days
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14. Emotional attachment on Gift Card
“Every Great Company would have different philosophy but would
share the same in common - “Love”
Gift Giving is the most common way to express “Love”.
For those Retailer, not yet start their gift business, should leverage the
Gift Card business to help their beloved customer to love each other
and to convey this message to all the world.
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15. About Ceridian Stored Value
Solution

16. World Leading Prepaid 20+ experience in Prepaid Solution
Solution
“ We are a World Leading Prepaid solution service
company, serving different customers in different retail
industry all over the world”
AC HI EV EM EN T SU MM ARY
oss 45 countries
1. Global Provider: 650+ clients acr
Billio n transaction processed
2. 550 MM+ card production ; 1.2
else
3. More Top 100 retailers than anyone
Ceridian SVS has been the pioneer since 1992 in providing
prepaid solution service for 650+ customer worldwide in
which 6 of top 10 retailers in USA 15

17. SVS clients are all over the world and in different retail industry
16

18. About Author : Kelvin Tai
“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution”
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