Top 4 Reasons Why Gift Cards Are Awesome for Your Business
More and more businesses these days are offering gift cards in addition to their regular product offerings. With the holidays right around the corner, your small business should seriously consider adding gift cards to your product catalog. We all know the feeling of scrambling at the last minute to find the perfect gift for someone, only to leave with something mediocre simply because we ran out of time. Gift cards make it easy for the gift giver to purchase gifts quickly, and recipients love them because they allow them to buy something that they really want, rather than feeling guilty for not liking the gift that someone selected for them. As an entrepreneur, your retail business would be foolish not to offer gift cards this holiday season, and here’s why:
1. Increase Visibility for Your Brand
You likely spend tons of money on marketing campaigns each year in an effort to get your brand in front of consumers. With gift cards, it’s like getting free publicity. The recipients of the gift cards will see your brand name and logo every time they open their wallets. This way, your business will always be at the forefront of their minds when it comes time to actually make a purchase. If you make that first experience with your brand an enjoyable one, you may even gain a new customer for life, with no marketing necessary.
2. Gain New Customers
Gift cards can be a great way to generate new business for your retail store. If the customer is not already familiar with your brand, he or she will be after spending that gift card. In many cases, customers bring along a friend when they go out shopping, so there’s an opportunity to convert that customer into a loyal one as well. As an added bonus, the customer with the gift card has come to your store with the specific purpose of making a purchase, rather than just to browse, so you now have a captive audience. If you wow them with your products and services, you can expect them to return again in the future.
3. Boost Your Sales
When a shopper is making a purchase with a gift card, they typically end up spending more than the value of the gift card, often as high as 30 percent more! After all, they want to use up the full value of the gift card, which often requires additional purchases. When you add in the potential future sales to this same customer, this provides an incredible opportunity for the growth of your business. Even if a gift card customer only comes in that one time, your business still generated sales that it wouldn’t have otherwise.
4. Opportunities for Promotions
With gift cards, your small business is in a unique position to come up with some clever promotions. For example, you could offer a discount for gift card purchases, like allowing customers to pay $90 for a $100 gift card. You could also offer small gift cards as a reward for making purchases over a certain dollar amount. This way, you provide added value for your current customers while opening your business up to the possibility of gaining new customers.
These are just a few of the many benefits associated with offering gift cards to your customers, and the gift card model can be adapted to virtually any retail or service business. With the holidays nearing, now is the time to act to get your business ready to sell gift cards. Don’t let the holiday season pass your business by!