The surprising benefits of gift card programs
There are a number of elements that you must proactively consider when thinking about implementing a gift card program. Before deciding to move ahead, as a smart retailer, you will want to identify the value for your business and your customers. Does my small or medium-sized retail business need gift cards? Do they really generate more revenue? Will my customers use them? We address these very valid concerns by providing some insights that could lead to some clear and some surprising benefits for your retail business.
Gift cards work double duty as a marketing tool
We often tend to think of gift cards as another product to sell amid a vast array of goods available. However, don’t ignore the fact that gift cards are also multi-taskers. They double as a marketing tool that can enhance and modernize your business image. In-store, gift cards can maximize your store’s visibility with displays featuring branded signage at strategic locations in your floor plan.
Introducing gift cards into your offer is as easy as integrating a module into your current POS system and then once you’ve sold the card, it keeps on working for you. Every time gift cardholders open their wallets, they can see your brand and think of your store. So here’s an idea—get your logo, business name, website, and contact information on there.
You will definitely sell some gift cards at the counter when customers come in to your store to shop for a gift and find the gift card options more convenient. And your loyal customers will choose to buy your gift card over any other because they want their friends to share the shopping experience that only your store can offer.
Get the word out to your online customers and make sure to create a gift card section that is prominently featured in the main navigation on your website.
Access to a gift card program is closer than you think
Closer and easier because, if your business is currently using a complete POS, a gift card module can simply be added on, to provide you with an efficient and cost-effective solution.
Add-on gift card modules offer advantages for your business, your customers and your employees. Your business benefits from easy loading or transfer within the sales transaction, ordering, custom branding, and tracking card balances and unredeemed cards.
Your customers get ease of payment with a quick scan, potential rewards if gift card purchases tie-in to promotional campaigns such as BOGOs or discounts, and when they have to give a gift, they will appreciate the practicality and broad appeal of a gift card.
As for your employees, they will like the fact that selling and redeeming a gift card requires little to no training. Modern POS gift card modules provide step-by-step instructions to take the cashier through the sale or redemption process.
Gift cards create brand ambassadors
When it comes to your retail business, a gift card program can be your brand’s strongest supporter and can extend the reach of a single shopping experience to a vast network of consumers.
Potential customers can become real customers when they are drawn into your store to retrieve the value of your gift card. These new customers are introduced to your brand, your products, and your unique customer experience. And your business is introduced to a previously untapped source of loyal, returning customers!
Loyal customers can become brand advocates because they want to share their bond to your business with their network of friends and family. Your loyal customers will purchase gift cards as an easy go-to gift and as a way to introduce their friends to the experience of shopping in their favourite store.
Every redemption can generate more revenue
Finally, and perhaps most importantly, gift card programs provide a substantial if often overlooked potential for overspend. Statistically, when redeeming a gift card, almost three fourths of customers
will spend on average 20% more on a transaction than the value of their gift card. That means there’s a significant amount of revenue potential that comes along with a gift card program because
they consistently up-sell themselves.
You will definitely sell some gift cards online and at the counter when customers come in to your store to shop for a gift and find the gift card options more convenient. But there are many other ways that you can make more and save more money with a gift card program.
If you are considering implementing a gift card program in your store and would like more information, talk to an industry professional who will provide expertise on the right solution for your retail business.
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Ask us all your questions and find out how we can help you.