As online shopping continues to rise, brick-and-mortar stores are continuing to look for ways to stand out. It is no secret that gift cards are a great way to incentivize purchases and drive business. According to a report by the National Retail Federation, 88% of adults received a gift card last year, and 43% used it within the first week of having it.
If you were never convinced about the benefits of launching a gift card program for your company, continue reading for more information. The following might change your perception and help to grow your business. This blog post will cover why you should consider implementing a gift card program in your business.
Top Reasons to Implement a Gift Card Program for Your Business
Consumers love gift cards
According to recent public data, the number one reason why consumers love gift cards is that they serve as a “one-size-fits-all” type of gift. However, there are additional reasons why gift cards are so popular. They are easy to buy and can be purchased during any time of the year. This makes gift cards flexible, convenient, and a great option for all individuals.
Gift cards are thoughtful gifts that can be used in any way the recipient chooses. Consumers can also receive gift cards as rewards for completing surveys, participating in focus groups, or achieving certain health or wellness milestones from their employers. These are all standard ways that gift cards are distributed to different groups of people.
Great way to build brand awareness and drive sales
If your brand is new, giving away gift cards is a great way to get your name out there. If a consumer tries your product or service but doesn’t have enough money to purchase it, they can always use their gift card to complete the purchase and leave your business satisfied.
You can also get your gift cards in the hands of new customers by hosting a contest or giveaway. You can then track how many people used the gift card to make purchases and calculate an ROI. If your brand is already established, gift cards are a great way to keep your current customers happy.
You can offer gift cards as rewards for completing surveys, participating in focus groups, or achieving certain health or wellness milestones. Additionally, can also offer gift cards to customers who refer others to your business. This is a great way to increase referrals, boost your customer acquisition, and increase your customers lifetime value.
Gain better insights into the behavior of your consumers
Gift cards are easy to redeem and will provide a wealth of information to your employees. You’ll be able to see where your customers live, what stores they visit, and what times they prefer to shop.
This information can help you understand the needs and wants of your consumers and help you to make more insightful business decisions. You can also offer gift cards in different denominations so that your customers can make purchases based on their income levels. This will allow you to test different gift card amounts to see what works best for your brand.
Increase foot traffic and improve branding through exclusive promotions
You can offer exclusive promotions to customers who use a gift card to make a purchase. For example, you can offer a free service, product, or discount on your first visit after using a gift card. This is a great way to increase foot traffic and improve brand recognition for your business.
By giving away freebies, you’re showing your customers that you appreciate their gift card purchases. You can also implement a gift card exchange program if a customer has a gift card they cannot use or trade it in for a discount on their next purchase.
A low-cost way to acquire new customers
Gift cards are an effective way to acquire new customers without spending much money. You can offer gift cards in exchange for referrals. This allows you to acquire new customers without spending money on advertisements.
It’s also a low-cost marketing strategy that allows you to test different offers to see what works best for your brand. You can also offer gift cards to customers participating in focus groups and surveys. This is a another great way to get new customers for your business again without spending money on advertisements.
Benefits of Implementing a Gift Card Program for Your Business
For a good reason, gift cards are indeed a popular holiday present. They’re simple to buy and wrap and allow the receiver to select their own gift. But did you know that gift cards may also be an important marketing tool for smaller companies? Read on to know much more about the advantages of providing gift cards to consumers.
- Among the most obvious advantages of selling gift cards is how they can assist bringing in new clients. If someone gets a gift card from a store as a gift, they will most likely return to spend it. They may also end up picking up a couple of additional products while they’re in the store.
- Gift cards can help keep existing consumers returning to your establishment. If consumers appreciate their shopping experience and the things they sell, they are more likely to come back if they have a gift card to utilize. Furthermore, offering loyalty benefits or discounts on new purchases when consumers utilize a gift card can motivate them to return and buy with you again.
- Gift cards also can assist boost sales during quiet periods, such as soon after Christmas or summer. Customers who are given gift cards but do not have time to spend them immediately will surely come into your shop to redeem them, giving you a much-needed boost in sales during these down times of the year.
With all of these advantages, why should a business owner reject this payment model? Some people have expressed concern about the cost of set-up charges or regular processing.
That objection, however, is illogical because those costs, like any worthwhile company expense, should be considered an expenditure that will return benefits once the product begins selling.
Conclusion
Gift cards are a great way to drive sales and reward customers. If your brand is new, gift cards are a great way to get your name out there. If you’re already established, gift cards are a great way to keep your current customers happy. Gift cards are easy to redeem and will provide a wealth of information to your employees to make further decisions.
You can also offer gift cards in different denominations so that your customers can select the amount they they would like to purchase. You can also implement a gift card exchange program or offer gift cards in exchange for referrals. This is a low-cost way to acquire new customers and a low-cost way to reward your current customers.
