More and more companies these days are offering gift cards to incentivize both their clients and employees. Gift cards offer a cost-effective way to grow your business. Even though marketing tactics are constantly changing, gift cards have remained a great way to improve your company.
Should your company start offering gift cards?
Read this guide to learn why many companies prefer to give Gift Cards!
Related: Personalize your gifting with Digital Co-Branded Gift Cards
(1) Gift Cards Can Boost Revenue
Gift cards are extremely cost-effective to produce. And, if you don’t want to cover the cost of producing physical gift cards, you can offer digital gift cards instead.
Many people prefer digital gift cards, as they’re easy to keep track of and don’t result in any plastic waste. When someone receives a gift card, they tend to spend over the card limit, as they see the gift card as “free money,” so they’re more willing to treat themselves to a little something extra.
Plus, when someone has a gift card, they’re more likely to spend it on something they normally wouldn’t buy. So, not only can gift cards help boost your revenue stream, but they can also help diversify where the revenue is coming from.
For example, someone who has a restaurant gift card may feel more inclined to order dessert and drinks with their meal when they normally wouldn’t, knowing that the gift card covers the extra charge.
(2) Gift Cards Can Build Brand Awareness
Another excellent aspect of gift cards is that they can help build brand awareness. Traditional plastic gift cards often tuck neatly into one’s wallet. Any time a customer opens their wallet, they’ll be reminded of your brand.
Additionally, when someone takes the gift card out of their wallet, others will notice it, which can further help build brand awareness.
(3) Capture More Holiday Sales
Many people get stressed out trying to choose the perfect gift for their loved ones during the holiday season. With so many present options, gift cards provide the perfect solution for the overwhelmed and indecisive.
A holiday shopper can easily pick up a gift card from your store, so they don’t have to think about the perfect present to buy their loved one.
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(4) Get Two Customers for the Price of One
Often, the gift card recipient is different from the gift card purchaser. Typically, someone will purchase a gift card from your store and give it to someone else, giving you two customers for the price of one.
Many times, the person buying the gift card will also buy another item along with their purchase. They also may give the gift card to someone who might not normally shop at your store, giving you the opportunity to reach a new customer base.
And as we mentioned above, people tend to spend beyond the limit of the gift card, so you can boost your revenue while also expanding your customer base.
Related: Physical Gift Cards
(5) Gift Cards are Easy to Track
Another excellent thing about gift cards is that they’re easy to track within your point-of-sale system. You can track your gift cards alongside your regular transactions, making it easier to better understand consumer behavior.
You can also track when gift card purchases tend to be higher, so you know to push them more during these periods when customers are more likely to buy.
(6) Gift Cards Reduce Fraud
Fraud and identity theft are growing concerns for many consumers, especially as we increasingly offer more personal information through our purchases.
Gift cards have no personal information attached to them, so you never have to worry about your identity being stolen when using a gift card. Plus, it’s nearly impossible to duplicate a gift card, so you don’t have to worry about fraudsters trying to steal from your company by using fake gift cards.
(7) Gift Cards Build Customer Loyalty
You can use gift cards in tandem with reward programs to build customer loyalty. For example, you can give gift cards away to customers after they spend a certain amount of money on your products or services.
If you have a dispute with your customer that results in them being unsatisfied, you could give them a gift card as a peace offering.
(8) Gift Cards Can Result in Pure Profit
Another excellent aspect of gift cards is that they can sometimes result in pure profit. Occasionally, someone will completely forget that they have a gift card and throw it away without even realizing it.
This results in pure profit for your business.
(9) Gift Cards are Great for Employees, Too!
Gift cards can keep your employees happy as well as your customers. You can give gift cards to employees to show them your appreciation for all of their hard work. A gift card gives an employee the perfect opportunity to treat themselves to something special.
Additionally, employees tend to remember gift cards more, as they provide tangible experiences to look back on. Gift cards are also easier to talk about with friends and colleagues than cash bonuses.
Cash bonuses can be awkward to discuss, as there is a lot of stigma surrounding them. Gift cards don’t come with this stigma; many of your employees will gleefully share their excitement about receiving a gift card.
Gift cards are an excellent, low-cost investment for your business. They help spread the message about your brand, build your customer base, and boost revenue.
Gift cards can also be tailored to fit any budget.
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