Sell Gift Cards To Encourage Sales at Your Business
Gift cards are the kind of presents that people of all ages and backgrounds will appreciate. They have become popular even when there are no festivities of any kind being celebrated. Other special occasions where one will find it appropriate to offer gift cards are baby showers, graduations and birthdays. The person who offers the card feels confident in his gift because no matter how small and simple it might seem, cards have a very strong impact on the receiver. Consumers are not the only people who appreciate gift cards. Small businesses are now appreciating why it is important for them to sell gift cards.
Solid Reasons for a Business to Sell Gift Cards
The first obvious reason why a business would be interested in selling a gift card is the sales profit. Each of the customers who are card holders probably has a small balance on their cards. Therefore, they may keep coming back to a store in order to utilize the full amount of the card. Another good thing about gift cards is that they do not value away from the products like coupons. They can be used over multiple purchases making it easy to sell additional products.
Small businesses that sell gift cards increase its brand awareness. A customer who receives a gift card will appreciate it and relish the opportunity to try something new and appealing. A business should not rely on the traditional method of word of mouth as a means of brand recognition. By providing gift cards, a business owner lets others share their love of his products.
When it comes to the locations where gift cards can be sold, the list cannot be exhausted. From online marketplaces to convenience stores, a business can increase its potential reach to a huge audience with minimal effort. For creativity purposes, one can also include an attractively written logo of the company inside the gift cards. This extra appeal gains more exposure for the business and increases brand awareness.
Gift Cards To Help You Build Customer Loyalty
A business will go to great lengths in order to retain long-term loyal clients. Customers will more likely buy products and services from a company they feel they share a strong bond with. That is why it is extremely vital for a business to ensure it has built personal brand connections with its customers, both new and existing. Loyal customers will want to keep coming back to a store to reach a certain targeted amount, increasing customer loyalty.
It is common to see people rushing to purchase gift cards just before a holiday season such as Christmas or Valentine’s Day. Customers often feel pressured to find something special and unique to give a loved one during such times. A business that fails to provide its customers with gift cards during such season may be losing out on huge sales.
A business may offer both electronic and physical gift cards and still reach out to many customers who are in a rush to meet deadlines. Some of the customers might also be traveling to far places for the holidays, so when the prompt sale of these gift cards boosts sales.
Reduce Fraud Cases
Customers feel a great sense of security when using gift cards. Identity theft has become a coon issue and it is understandable why most consumers are afraid of falling victim. In view of the surging cases of credit card theft and data breaches, many customers are reluctant to try out new retailers and small businesses. Before buying bulk gift cards, a person needs to ensure that he has bought from a card company that offers the latest technology in order to minimize such incidences. Electronic gift cards have an automatic update of balances every time a customer makes a purchase. This significantly reduces the risk of fraud or misuse through cash-back misuse. A customer who uses gift cards feels more secure when making purchases. This also helps a business protect itself from fraudsters.
A Business Thrives
Studies show that each year consumers spend over $100 billion into gift cards. A business that sells gift cards a business thrives in the following ways:
- Enhance brand visibility: the best way for a business to generate first-time customers is through adding a personalized business logo on the gift card. It is a clever trick to enhance brand visibility without sounding too promotional. 90% of Americans consumers buy or receive a gift card. This shows that gift card is a great marketing tool and gives a business more impetus to strengthen customer loyalty.
- Offer incentives: customers will spend more at a store that sells gift cards to them. It gives a strong incentive for a person to spend. Card users will come back often to a business premise in order to deplete the balance on their gift cards. As a result, customers will spend more each time they drop by.
- Generate revenue in advance: most of the advertising practices available are hard to track. However, selling gift cards makes it easier to track sales since consumers will always find themselves paying more than the actual value of the card.
- Creates opportunities for promotional campaigns: selling gift cards opens up various opportunities for a business to engage in promotional strategies. For instance, if a business offers a $20 gift card for a customer who spends more than $50, he is able to required loyal customers who reach that target.
The Take Home Point
Gift cards are increasingly becoming popular. It has often been said that the best kinds of gifts are sometimes the small ones. They offer an opportunity for the giver to express his feelings and the receiver feels well appreciated. Try to sell and receive gift cards at your business and enjoy all the benefits that come with it. Tough economic times call for smart ways to attract new customers while building customer loyalty and this is one way of doing so.