Key Takeaways:
- Retail gift card programs drive repeat sales, attract new customers, and increase brand loyalty.
- Setting up a gift card program through your POS is simple and highly customizable with modern systems like KORONA POS.
- Gift cards are both a marketing tool and a revenue stream — helping retailers grow even during slow seasons.
- Proper setup, staff training, and marketing are key to maximizing ROI.
Retailers are always looking for ways to boost sales and customer retention — and few tools deliver like retail gift cards. Whether you run a single boutique or manage multiple storefronts, gift cards can expand your customer base and increase average order values.
In this guide, you’ll learn how a retail gift card program works, why it’s essential, and how to launch one effectively through your POS system. You’ll also see how KORONA POS helps streamline setup, management, and reporting for your business.
What is a Retail Gift Card Program?
A retail gift card program allows customers to purchase prepaid cards that can be redeemed later for goods or services. For retailers, this creates immediate revenue and brand exposure while encouraging repeat visits and customer loyalty.
How Do Retail Gift Card Programs Work?
Gift cards are loaded with a set balance and tracked digitally through your POS. When customers redeem them, the balance updates automatically — reducing human error and preventing fraud. Systems like KORONA POS integrate seamlessly with barcode scanners and online stores to simplify accounting and redemption.
Types of Gift Card Programs Retailers Offer
Retailers can choose from several types of gift card programs, each designed to fit different business models and customer needs. From closed-loop cards for in-store use to digital options that boost online sales, selecting the right program can significantly enhance customer engagement and brand loyalty.
Type #1: Physical (Plastic) Gift Cards
Perfect for in-store shoppers, physical cards make great holiday gifts and can be displayed near registers for impulse purchases.
Type #2: eGift Cards
Digital versions that are delivered instantly via email or text — ideal for online stores or last-minute gifting.
Type #3: Reloadable Cards
These cards can be reloaded, encouraging repeat visits and building customer loyalty over time.
Type #4: Promotional Cards
Offered during marketing campaigns (“Spend $50, get $10 back”) to increase short-term sales.
Type #5: Multi-Store or Franchise Cards
Useful for retailers with multiple locations — customers can redeem these cards across your entire network.
Season | Average Sales Spike | Best Practices |
Holidays (Nov-Dec) | +35% | Promote physical gift cards, offer gift bundles |
Valentine's Day | +15% | Digital cards work well for last-minute gifting |
Mother's/Father's Day | +10% | Combine cards with special promotions |
Back-to-School | +5% | Target students & parents with eGift options |
Step-by-Step Guide to Creating a Retail Gift Card Program
Launching a retail gift card program is easier than you might think — especially with the right point of sale (POS) system. Follow these simple steps to design, implement, and manage a program that boosts sales, attracts new customers, and builds long-term loyalty.
Step #1: Choose the Right Gift Card Type
Decide which type of card aligns with your sales channels and customer preferences — physical, digital, or hybrid.
Step #2: Pick a Reliable POS Platform
A good POS should let you issue, track, and redeem cards without hassle.
The KORONA POS system integrates gift cards with inventory, reporting, and customer data — perfect for multi-location retailers in cities like Austin or Chicago.
Step #3: Design Your Gift Cards
Design branded cards with your logo and color scheme. Partnering with Plastic Printers ensures durability and professional quality.
Step #4: Set Rules and Policies
Establish expiration terms, refund policies, and reload options — and make sure they comply with federal and state regulations.
Step #5: Train Staff and Launch
Ensure your team knows how to sell, redeem, and promote gift cards. Train them through your POS dashboard for consistency across all locations.
Free printable templates and checklists to help you manage retail operations with ease
Are There Regulations with Gift Cards?
Yes. The Credit CARD Act of 2009 mandates that most gift cards cannot expire within five years of issuance and restricts certain fees. Always verify local regulations before launch.
What Are the Benefits of Using Gift Cards?
Gift cards offer a convenient and flexible way for customers to give and receive gifts, allowing recipients to choose exactly what they want. For retailers, they can boost sales, attract new customers, and encourage repeat purchases, making them a powerful tool for business growth.
1. Custom Gift Cards Are the Most Popular Gift
Studies show that gift cards are the #1 most requested present, making them a reliable year-round product.
2. Plastic Gift Cards Increase Customer Spending
Recipients often spend 20–40% more than the card’s value — boosting sales margins.
3. Gain New Customers with Retail Gift Cards
Gift cards serve as personal recommendations, introducing your brand to new audiences.
4. Custom Gift Cards Raise Brand Awareness
Your branding appears in wallets, inboxes, and social feeds, offering free and lasting exposure.
5. Gift Cards Can Be Used During a Time of Crisis
When foot traffic slows, prepaid cards can stabilize cash flow and help retailers weather economic downturns.
6. Gift Cards Integrate with Loyalty Programs
When paired with point-based loyalty systems, gift cards deepen engagement by rewarding repeat customers.
7. Gift Cards Strengthen Retail Marketing
Gift cards fit naturally within modern retail marketing strategies — from seasonal campaigns to referral incentives. They also enhance customer experience in retail stores and can support larger retail marketing efforts. For long-term scalability, they’re a proven tactic to grow your retail business.
Tips for Running a Successful Retail Gift Card Program
Running a successful retail gift card program takes more than just offering cards at checkout—it’s about strategy, design, and ongoing management. Below are key tips to help you maximize sales, build customer loyalty, and keep your program running smoothly year-round.
Tip #1: Promote Across Multiple Channels
Advertise cards in-store, online, and on social media to reach diverse audiences.
Tip #2: Offer Limited-Time Incentives
Use promotions like “Buy $50, Get $10 Free” to boost both gift card and merchandise sales.
Tip #3: Track Performance Metrics
Monitor redemption rates, purchase values, and repeat visits with KORONA POS reporting tools.
Tip #4: Combine with Loyalty or Referral Programs
Integrate gift cards with different types of loyalty programs to encourage repeat shopping.
Tip #5: Simplify and Automate Operations
Use retail operations software to automate tracking, accounting, and reports for multi-location management.
Tip #6: Integrate with Loyalty Programs
When paired with point-based loyalty systems, gift cards deepen engagement by rewarding repeat customers.
Pro Tip!
Use POS reporting to identify which gift card type drives the highest redemption and sales — then promote that type heavily during peak seasons.
Examples of Successful Retail Gift Card Programs
Many major retailers have mastered the art of using gift cards to drive sales and customer retention. The following examples highlight how both global brands and small businesses have leveraged gift card programs to strengthen customer relationships and boost revenue.
Example #1: Starbucks
Starbucks’ app and physical gift cards have revolutionized prepaid retail — generating over $1 billion in outstanding balances that encourage repeat visits.
Example #2: Sephora
By linking gift cards to its loyalty program, Sephora turns casual gift buyers into long-term customers.
Example #3: Local Boutique Chain
A Michigan-based boutique using KORONA POS launched branded gift cards integrated with its retail store equipment, leading to a 25% holiday-season sales lift and higher brand visibility.
Pro tip!
Study how top brands like Starbucks or Sephora integrate gift cards with loyalty apps — you can apply similar strategies at a smaller scale.
Get Gift Cards with KORONA POS and Plastic Printers
Ready to launch your retail gift card program? KORONA POS, in partnership with Plastic Printers, makes it easy to design, track, and manage your cards from one dashboard. Boost customer loyalty and drive recurring revenue today.
Get started with KORONA POS today!
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