7 Reasons SMBs Should Have a DGP (Digital Gifting Program)


What’s the main reason your small- to medium-sized business should have a digital gifting program? It allows you to sell one of the most popular items on the market. Gift cards may be small in size, but the opportunity is big:

The global gift card market is expected to reach $750B by 2026.1

Don’t you wish your brand was set up to get your slice of that pie? Well, as the global leader in branded payments, Blackhawk Network is here to help. But if you’re not yet convinced, here are 7 more reasons you should develop your own digital gifting platform:

Reason 1: Additional Revenue!

For some brands and retailers, a promotional calendar starts and stops with the winter holidays. But there are promotional opportunities all year long, which means these brands and retailers are missing out on dozens of opportunities to increase loyalty, drive sales, find additional revenue or accomplish almost any other business goal.

The Big Opportunities

Our typical customer’s gift card program brings in an additional 2–5% of their company’s total annual revenue.2 But that varies greatly by industry:

  • Grocery, C-Store and Fuel: .5–1.5%
  • Travel & Entertainment: 1–2%
  • Big Box Retailers: 1–2.5%
  • Casual Dining: 5–10%
  • Quick-Serve Restaurants/Coffee Chains: 1–20%

Reason 2: Your Customers Will Spend More

When people bring their gift cards to your store (online or brick-and-mortar) to use as payment, they typically spend more than the value of the gift card. In fact—for fine dining, fast casual or drug stores—80% will spend more.3

Reason 3: Capture Last-Minute Shoppers

When your shoppers procrastinate, you can save the day (and gain their long-lasting appreciation). Not only can they pick up a physical gift card on the way to an event, but they can buy eGift cards and send them anywhere in the world almost instantly.

This is especially relevant for holiday shopping—22% of all holiday gift card sales take place at the last minute.4

Reason 4: Get Your Piece of the eGift Card Growth

eGift card sales are growing at a rapid pace. During the last holiday season, sales of eGifts increased more than 80%.5 But this shouldn’t be a surprise; more people are going touchless and eGifts are faster and easier for gifting and for self-use.

Reason 5: People Love Gift Cards

Why would you not want to sell the most popular gift item? How popular are gift cards?

They’ve been the #1 most requested
holiday gift for 15 years in a row. 6

Reason 6: Gift Card Promotions Work Better

Promotions work. You know that. But according to our research, gift card-based promotions outperform promotions that use discounts, coupons or special offers. Plus, your gift cards can be used to drive almost any business objective:

  • Increase overall revenue
  • Increase foot traffic
  • Increase basket size
  • Drive repeat trips
  • Sell off excess inventory
  • Drive business during slow periods
  • And more

Reason 7: Gift Cards are Good for Your Brand

As a foundation of your overall payments strategy, gift cards can do wonderful things for your brand every day:

  • Versatile sales drivers
  • Daily advertisement for your brand in your customers’ hands
  • Powerful customer service tools

How Can We Help?

Of course, you don’t have to be a gift card program expert to get your program going (or expand your current program). All you have to do is talk to a Blackhawk Network gift card expert. We can help you get started, or manage your entire program from start to finish—whatever you need.

How Can We Help You?

If you’re ready for a conversation, click here or call 1300.883.667


[1] Global Gift Cards Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2018 to 2026, ResearchandMarkets.com, 2018

[2] Blackhawk Network Sales Team Insights, 2021

[3] First Data Prepaid Consumer Insights Study, Fiserv, 2018

[4] Blackhawk Network Sales Team Insights, Winter Holidays, Valentine’s Day, Mother's Day and Father's Day

[5] Blackhawk Network Data Analysis, 2021

[6] 2021 Holiday By the Numbers, NRF

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