Gift cards are often a punchline in holiday jokes as they tend to be thought of as a last-minute option for some or are the gift that lazy people purchase who don’t put any consideration into what to buy friends and family. The truth is that gift cards are a pretty compelling business tool in your arsenal as they can provide your company benefits beyond the initial sale.
Having No Gift Cards Could Mean Less Repeat Business and New Sales
Gift cards may be an easy way to bring in initial revenue, but they are also a promise for future business. The people that buy a gift card for themselves are telling your business that they plan to be back later to make another purchase. Those that give out gift cards as gifts are potentially introducing new customers to your store or service. According to the 2017 Prepaid Consumer Insights Study completed by First Data Corp, 44% of respondents went to a new store because of a gift card they received. Making these customers feel good about their purchase and your service can help to turn them into repeat customers.
When a person has a gift card that they purchased for later or received as a gift, they are more than likely going to spend at least the value of the gift card. In fact, the 2017 Prepaid Consumer Insights Study found that recipients of a gift card spent an average of $38 more than the value of the gift card. This can make offering gift card sales an easy way to increase the size of a sale.
Marketing and Branding
Gift cards are a great marketing tool as they can bring in new and loyal customers to spend money. They are also an excellent tool to be used for branding purposes. Keep your brand front and center in the minds of your customers. This can be a great way to introduce your brand to new clients.
When it comes to gift cards, there’s also the potential for abandoned gift cards. Not every gift card is a hit with the receiver. In some cases, your gift card will never be used, and this can also contribute to your bottom line.
Thinking of offering business gift cards for your company? Contact us today to learn more about how we can help your business take advantage of gift card benefits.