7 Great Things About Gift Cards
Written by Allan Lacoste, in Category Marketing and Advertising
Businesses operate in a highly competitive world. Every day, a competitor is working to take business away. Given the cutthroat nature of the market, finding ways to improve sales and connection with the local community is essential to long-term success. One way to accomplish this is to offer gift cards for sale. Companies that sell gift cards achieve tremendous advantages in building the customer base and revenues.
1. People Want Them
According to giftcardgranny.com, almost 93% of Americans have given or received a gift card. They make easy gifts for last-minute purchases, stocking stuffers, or gifts for teachers. And since they let people purchase what they want, people request them often.
2. Immediate Revenue
A store or restaurant gains revenue the moment someone purchases a gift card. They are never returned, so that money is available before the holder uses it to purchase anything.
3. Drive Traffic
A person holding a gift card for a business can only use it at that business. This helps drive traffic higher, giving more opportunities to close sales and increase revenue.
4. Unused Balances
Rarely will a purchase come to exactly the value on a gift card. If any of the balance goes unused, that becomes pure profit for the business that issued it.
5. Sales Beyond Card Value
For those who do not leave an unused balance, purchases in-store go above the value of the card. The existence of a gift card in someone's wallet or purse means additional sales for the business.
6. Customer Data
When a business offers a reloadable gift card, it provides access to valuable customer data associated with the card. This helps to generate the ability to perform more targeted marketing aimed at the people who shop at that business.
7. Marketing Value
Finally, a gift card keeps the name and logo of the business offering it with the consumer, providing free marketing in the process. Every time that person or someone nearby sees the logo, it places it in their mind.
Gift cards provide value far beyond the cost to the business of having them printed and produced. Businesses should coordinate with their payment processing services providers to ensure gift card solutions are available and implemented. The potential gains are too big to ignore.