How Giving Away Gift Cards Locally Can Grow Your Revenue

If you’re looking for a smart, cost-effective way to attract new customers, here’s a strategy that’s working wonders for local businesses: handing out gift cards in your community.

At first glance, it might sound like giving away money - but in reality, it’s one of the most powerful tools for generating interest, driving traffic, and turning curious passersby into loyal customers.

Let’s dive into why this works, and how you can start using it today.

It's a No-Risk Invitation to Try Your Business

One of the biggest hurdles for attracting new customers is getting them through the door for the first time. A gift card removes the risk. Instead of asking someone to take a chance on you, you’re giving them a reason to explore your business with no pressure to buy.

Whether it's $10, $20, or more, the perceived value can make a big difference. It says: “We think you’ll love it here - let this be your introduction.”

People Talk About Unexpected Generosity

We’ve all had moments where a small, unexpected gesture made our day. Giving someone a gift card, whether at a local event, via a community group, or just out on the street, creates a positive, shareable experience. And word spreads fast. People tell friends, post on social media, and remember brands that surprise them in a thoughtful way.

Most Customers Spend More Than the Card Value

On average, Wrapped brands see customers spend 2-3x the value of a gift card on redemption. That means a $20 card doesn’t just get someone in the door - it often leads to a larger sale. Plus, if they enjoy the experience, they’re more likely to come back, tell their friends, and become part of your regular customer base.

It Shows You Care About the Community

Gift card giveaways aren’t just about boosting sales. They’re a chance to show that you support your community. Whether you’re sponsoring a local fundraiser, donating cards to a school raffle, or rewarding community volunteers, these acts position your brand as generous and local-first.

In a world where people love to support businesses that give back, this kind of goodwill goes a long way.

You Can Measure the Results

One of the best parts? You can actually track the ROI of this strategy. In Wrapped, you’ll be able to see how many people redeem them, how much they spend, and whether they return. Our comprehensive reporting features gives you a clear view of how your local outreach efforts are performing and how much value you're generating in return.

Creative Ways to Distribute Gift Cards

Not sure where to start? Here are a few tried and tested ways that Wrapped customers get gift cards into the right hands:

Partner with schools or clubs – Donate cards for raffles, to sports clubs, or to thank volunteers.

Sponsor local events – Set up a booth and hand out cards to attendees.
Surprise locals in high foot-traffic areas – A friendly staff member handing out $10 gift cards can spark tons of interest.
Collaborate with other businesses – Add your gift cards to their customer thank-you packs or welcome kits.
Support charities and community drives – Offer gift cards as rewards or auction items.

Key Takeaway: Small Gesture, Big Impact

Handing out gift cards in your community isn’t just a nice thing to do - it’s a strategic marketing move. It helps you connect with real people in meaningful ways, spark curiosity, and turn a small gift into long-term business growth.

So next time you’re planning your marketing budget, don’t underestimate the power of local generosity. It just might be the most effective (and feel-good) investment you make.

Want Help Launching a Local Gift Card Campaign?

If you're looking for tools to design, track, and distribute beautiful branded gift cards, both digitally and in-store, we’d love to help. Reach out to the Wrapped team to explore how Wrapped can support you to create a seamless, integrated gift card solution that delights customers and drives revenue.