Unlock Hidden Growth
Discover the powerful Return on Investment of a Gift Card Program. This interactive tool translates the detailed ROI analysis into a dynamic model for your business. Adjust the sliders to see how small changes can lead to significant profit.
Your Business Inputs
Projected Annual Return
$14,464
Projected Net Profit
$2,400
Total Program Cost
Where Does the Value Come From?
The return on investment isn't from a single source. It's a combination of powerful financial levers. This chart shows the contribution of each key driver to the total gross profit generated by the program. Interact with the sliders above to see how changing your business inputs affects this breakdown.
Profit from Overspend
The high-margin profit generated when customers spend more than the gift card's value.
$4,914
Value from New Customers (LTV)
The total lifetime value from new customers acquired because they received a gift card.
$8,500
Profit from Breakage
Revenue from unredeemed card balances. Note: This is heavily regulated.
$3,000
Value of Float
Interest earned on the cash held from gift card sales before redemption.
$450
Understanding the Key Value Drivers
Overspend: The Primary Profit Multiplier
Overspend (or "uplift") is the single most powerful revenue generator in a gift card program. A majority of customers treat the card like a discount on a larger purchase, not just as cash. They consistently spend significantly more than the card's face value.
- ✓ On average, customers spend $35 more than the card value.
- ✓ 65% of customers overspend.
- ✓ Gift card users are 2.5x more likely to pay full price, protecting your margins.
New Customers: Your Most Efficient Marketing Channel
A gift card program transforms your loyal customers into a highly effective sales force. When they give a card as a gift, they are personally recommending your brand, resulting in new customer acquisition at a fraction of the cost of traditional advertising.
52% of cards are purchased as gifts for others.
49% of recipients try a new business because of a gift card.
Results in 125 new high-value customers for your business.
The Loyalty Flywheel: Compounding Growth
Gift cards and loyalty programs create a powerful, self-reinforcing cycle. Gift card recipients are highly likely to join your loyalty program, and loyalty members are highly likely to buy more gift cards, creating a "flywheel" that continuously drives acquisition and retention.
1. Member Buys Gift
61% of loyalty members are more likely to buy gift cards.
2. New Customer Acquired
The gift introduces a new person to your brand.
3. Recipient Joins Loyalty
66% of recipients are more likely to join your rewards program.
4. Cycle Repeats
The new member is now more likely to buy gifts, perpetuating growth.
Sensitivity Analysis: Plan for Any Scenario
A single number doesn't tell the whole story. This analysis shows how your ROI can change under different market conditions or legal constraints. Click a scenario to load its assumptions into the calculator and explore the impact.