Why a Small Business Should Have a Gift Card Program
Every decision matters, especially when you are a small business owner.
Who to hire, what marketing strategy to deploy, what location to choose, to name a few, all have an important impact on your potential for future success. You want to maximize your chances of making a profit so you can build a thriving business. But even with the perfect location, great website, trendy Facebook page etc. in place are you truly ready to maximize the chances of making sales?
If you want increased profit then you really need a gift card program. Getting a gift card program is in fact instant and easy. If you do not know this then you may be missing out on the substantial business that gift cards generate. Read on to find out why you, as a small business owner, should really consider starting a gift card program stat!
Increase Sales and Create Lift
72% of gift card recipients (that is those who have come to your location after receiving a gift card for your brand) spend more than the original gift card value when they redeemed their card. Typically they spend 60% more than the value of the card. Additionally a recent study noted that 25% of those who redeemed their gift card at a brand bought an item they had not originally intended to buy when they entered the brand location. 55% of shoppers visited a store more than once to spend their gift card amount, fostering valuable repeat visits. Gift cards will increase your sales and drive profit. If you spend money on social media campaigns, training staff or decorating your location all in the hopes to increase sales then why not spend on a gift card program that is almost guaranteed to do so? Experienced gift card providers will also have a small business gift card program, such as Givex’s Givexpress which is quick to implement and more affordable than other programs.
Gift Certificates Aren’t Gift Cards
You may still be offering paper gift certificates and think that these are suitable substitutes for a plastic or e-gift card program. They are not. In addition to being highly susceptible to fraud (the paper certificates can be photocopied and re-used) they are most often kept away in a box for security reasons, where no one can see them unless they are asked for. This undermines the likelihood of your customers giving a gift from your brand as they do not see the gift certificates in a display or at the POS (as gift cards can be displayed) prompting them to buy. Gift cards in contrast can be safely displayed because they don’t have any value until they are activated by your employee. For customers gift cards also feel more premium and current, adding to the professional image of your business. Typically businesses that switch from paper gift certificates to plastic gift cards sell 35% to 50% more gift cards than gift certificates.
Stay With the Trend
Online shopping is a trend that is here to stay. With e-gift cards you give tech-savvy online shoppers a way to easily give your products or service as a gift online. Consumers want convenience, which is why so many of them shop on the go from mobile devices – ease of use and limited time commitment needed. E-gift cards fit very well into this model. They are very flexible in that they are always with the consumer and cannot be lost or forgotten, increasing ease of use. They can be bought last minute before a holiday or a birthday and be delivered right away. E-gift cards come with a lot of benefits – they drive customer acquisition, create lift, and let your customers order beyond shipping deadline cut offs. Use them to attract tech-savvy customers.
Bring in Two Customers for the Price of One
With a gift card you bring in at least two customers to your brand location – the gift giver and the gift recipient. Gift cards are a great way to publicize your business. They are given by your loyal customers to friends and family with whom they wish to share your service or product. Pretty much free advertising! 11% of gift card recipients had never or rarely visited the merchant’s location before receiving a gift card to that brand. You can use this opportunity to wow both the giver and recipient with excellent customer service, product/service knowledge, an up to date inventory and loyalty rewards to encourage purchases and repeat visits.
An Easy Choice
These days consumers still value convenience when shopping. Gift cards and e-gift cards take out the hassle, worry and guess work out of gift giving. They can be bought irrespective of the recipients schedule or specific wants from a loved brand. Time harried consumers can pick them up in a snap via your website or physical location. Make shopping with you easy with gift and e-gift cards.
Givex makes starting a gift card program quick, affordable and hassle-free. Contact us to see for yourself how easily we can start your gift card program today!