As a retail business owner, you are motivated by the sale. You know that relationship building and marketing are crucial to your business, and you’re always looking for ways to strengthen those strategies. Gift cards can be an incredibly impactful way to achieve these business goals by increasing your revenue, brand awareness, and customer retention.
Here are six ways that gift cards spark business growth for retailers.
1. Gift Cards Promote Customer Loyalty
There are several opportunities to incorporate gift cards into a customer loyalty promotion. And a well-planned gift card strategy can turn one-time customers into lifelong patrons.
For example, you may consider running a holiday campaign, offering gift cards at a discount—which will drive sales while rewarding your customer. Or, when an organization asks for a donation, you may consider donating a gift card in-kind instead of offering cash—creating an opportunity for them to come back and shop with you.
Gift cards can even be a way to apologize to a customer who has had a bad experience, encouraging them to spend at your store in the future, and giving them the chance to have a better experience without spending more.
However you approach customer loyalty, gift cards make a fantastic go-to tool.
2. Gift Cards Increase Your Website Traffic
When customers know that they can purchase physical and virtual gift cards directly from your website, they can visit your site when they need a last-minute gift. The recipient of the card will, in turn, visit your website to learn more about your products and services, exploring their options.
Along with other online gift card promotions—email and social media marketing campaigns, for example—offering gift card sales on your website gives your audience one more reason to visit.
3. Gift Cards Carry Holiday Sales Into the New Year
According to the National Retail Federation, gift cards have continued to be the most coveted wish-list item for the past 13 years. In the NRF’s 2019 survey, 59% of those surveyed reported having requested gift cards for the holidays. Higher gift card sales can help you bridge the gap for the weeks and months after the holidays when fewer people are shopping
4. Gift Cards Help You Manage Refunds
Returns and refunds are inevitable. When they happen, you can use gift cards to keep that money circulating within your business. This way, when a customer makes a return, they can make a purchase with you down the road—and they may even spend more than the gift card’s amount.
5. Gift Cards Improve Brand Awareness
When your gift cards align with your branding, they can be an excellent way to improve your brand awareness. Having your logo and messaging circulated among your customers and their friends and family (or even their coworkers and acquaintances) can go a long way in exposing new customers to your brand. You can achieve this goal with a custom gift card design.
To go the extra mile: Custom gift card presenters can go even further to help you get your name out there!
6. Gift Cards Increase Your Revenue
Of the five previous gift card benefits we’ve discussed in this article, they each contribute to an increase in your revenue. Gift cards offer various new business opportunities, allowing you to promote your business and use the funds generated from gift card sales to invest in your future.
Are you ready to spark growth in your retail business? Contact us today to schedule a consultation.