When the pandemic began to cause shutdowns, did you see social media posts from local restaurants and retail stores asking you to buy gift cards? Probably so. That’s because gift cards were, and still are, an excellent way to give merchants a boost in their revenue to help them stay afloat. The effect that gift cards have on a business’ revenue is often underestimated.
Gift cards are a way to increase revenue instantly while providing several other benefits. Here are just a few ways that gift card sales help merchants that need a boost through COVID-19.
How Merchants Benefit from Gift Card Sales During the Pandemic
1. Loyal Customers Can Support their Favorite Businesses
Having gift cards available allows your loyal customers to easily support your business throughout the pandemic and beyond. They can purchase a gift card now and use it for their holiday shopping, give it to a loved one, or give it to someone they know who is struggling due to layoffs. Your business can further encourage customer loyalty by offering discounts to gift card holders.
2. Gift Card Circulation Improves Brand Awareness
When your gift cards and gift card presenters are designed in alignment with your brand, they can be used as a marketing tool. It’s one more way to get your brand out there, and it gives businesses an additional product to market to customers. Merchants can promote their gift card sales heavily amid the pandemic to boost traffic—especially online visits, as many customers are still working from home and leaving their homes less frequently. These robust gift card campaigns can make a significant impact on merchants’ sales now and in the future, as gift card recipients often spend more than the amount on their card.
3. Customers Usually Buy More Than the Gift Card Amount
Think about the last time that you spent a gift card. Did you spend only what was on your card and not a dollar more? The answer is likely no. The item you wanted may have cost more, or you saw other products you liked as you browsed the menu, the store, or the website.
Gift card sales during the pandemic will not only help merchants increase their financial stability in the moment but well into 2021. The sales that merchants make now will increase their revenue throughout the holiday season and beyond. As merchants have been promoting gift card sales heavily since March, we will see customers spending those cards over the next several months. Once those customers redeem their gifts, they will inevitably spend more than their card’s amount, increasing revenue further for a longer period of time.
4. Gift Cards Attract New Customers
Possibly one of the most incredible benefits of gift card giving is that your customers can share your business with their friends and family. We all have that one place that we know our parents, siblings, or friends would absolutely love, and how amazing is it that we can share that love with a gift card? And just think, that gift card recipient may just become your next loyal patron.
Are you looking for ways to increase your revenue amid the COVID-19 pandemic? Contact us today to discuss gift card services and solutions.