Are gift cards good for business?
Everyone loves getting a gift card. Whether it’s a holiday, birthday, graduation or virtually another occasion, gift cards are always a popular choice. But gift cards can be exciting for more than the people using them. They can be a great benefit to your small business, too.
4 Reasons Gift Cards Are Good for Your Business
1. Improve Sales and Cash Flow
According to the small business marketing experts at ThriveHive, a person who comes to your store to buy a gift card for someone else spends an average of 38 percent more in the store. And once that gift card is in the recipient’s hands, you have the chance to build repeat business. Why? Because more than half of all gift cards are spent down through multiple visits, meaning you have multiple opportunities to sell something to that gift card holder.
When it comes to cash flow, think about this: gift cards add a new income channel that allows you to earn revenue before an actual sale is made. That’s a revenue boost that can help improve your short-term cash flow.
2. Increase Brand Awareness
You probably have people who love your company and recommend you to their friends. Why not give those “brand ambassadors” something they can really use to promote you?
When a loyal customer gives a gift card to someone else, that recipient now has an incentive to give you a try—with no risk and no expense. Your business benefits simply by letting your best customers do the brand awareness work for you.
To make it even better, you can use custom-designed cards that truly reflect your brand.
3. Offer Security
Paper gift certificates, long popular with small businesses, can be easily lost or faked. But many consumers are wary of identity theft and data breaches related to electronic payment methods like credit cards. That fear can keep some people from buying from a company they aren’t familiar with.
A gift card—with its preloaded funds that aren’t tied to any bank accounts—gives consumers a sense of confidence. If someone loses their gift card, the worst that happens is that someone else finds it and uses it. That’s a disappointment, to be sure. But it’s much better than someone finding your debit card or having your credit card information stolen by an online fraudster, for example.
For information on fighting gift card-related scams, check out our recent article.
4. Build Customer Loyalty
Customers who feel a strong connection with a brand will come back again and again. One way to build that connection is through membership programs and loyalty programs in conjunction with gift cards to provide a truly holistic experience. Loyalty cards attract repeat business, membership cards provide a sense of exclusivity, and gift cards are the icing on the cake.
Ready to Get Started?
Whether you have a few questions or you’re ready to jump in and start working on a custom-designed card that will drive more business, the Plastic Resource team is ready to help. Give us a call at 833-290-5684 or send us an email anytime.