Every year consumers load over $100 billion onto gift cards. Here are some of the ways that accepting gift cards can help your business thrive.
1. Build your brand
Offering gift cards with your personalized business logo is a perfect way to build and enhance your brand visibility and to generate more first-time customers. Every year over 90% of US consumers purchase or receive a gift card. This is a great marketing tool for building exposure to new and existing customers and for strengthening customer loyalty.
2. Give customers incentive to spend money at your business, and create repeat customers
When someone is given a gift card to use at your business, as opposed to being given cash, that customer has a strong incentive to spend it at your business. In fact, 55% of gift card users visit more than once to deplete the balances on their cards. Not only do gift cards make it easier for customers to spend money at your business, it gives them a valuable and compelling reason to return and spend more.
3. Generate revenue in advance of sales
Selling gift cards is a great marketing strategy that is significantly easier to track than traditional advertising practices, and it assures that customers will spend money in your store. According to giftcards.com, 70% of consumers will spend more than the value of the card. There is also very little risk involved for the business, as the business gets paid in advance for any products or services rendered when a gift card is purchased, and that revenue is realized whether the card is used or not. Depending on your state’s laws, you may even be able to keep the remaining balance on gift cards.
4. Opportunity for promotional campaigns
By selling gift cards at your business, it opens up the opportunity for additional promotional strategies. For example, you could offer a free $20 gift card when a customer spends $50 or more. This is also a great way to reward your most loyal customers.
If you sell gift cards, make sure to showcase them in a highly visible place that customers have to walk by. For example, placing gift cards next to the cash register will lead to more impulse buys from customers.
Want to learn more about how selling gift cards can help your business? Call us today at 504-434-0998 and you can start selling gift cards!