A great way to acquire new customers while retaining the loyal ones is to set up a gift card program. The many benefits of the gift card are often overlooked by merchants. For retail stores and special-service businesses, such as bookstores and day spas, gift cards are extremely effective marketing tools that can be displayed at the cash register or front desk for easy access. Below, find more benefits of gift cards.
1. Attract New Customers
Gift cards are usually effective at a business accepting credit cards for products or services that most people want or need – at an electronics store, for example, which carries items that many customers wouldn’t normally buy. Gift cards encourage people who might not otherwise visit your business to take a look around and likely return to make additional purchases.
2. Increase Brand Awareness
When your gift card is designed to match your company logo and brand, it essentially works as a marketing tool in the customer’s pocket. As people purchase more gift cards to give to their friends on birthdays and holidays, your brand continues to be dispersed among new customers.
3. Improve Sales
Although gift cards are often set to a specific amount, many customers will end up spending more. The gift card encourages customers to enter the store and browse products. Once they’ve started shopping, it is likely that they’ll end up finding a product that costs slightly more than the gift card’s value. Paying only a fraction of the price is still better than paying in full, and your customer will leave satisfied.
4. Reduce Fraud
The use of an electronic gift card allows for partial redemption, leaving the rest of the balance stored on the gift card and eliminating cash backs. You can also use gift cards for store credit, eliminating fraud that occurs when customers try to make expired returns for cash. Issuing gift cards in place of cash encourages more sales.
The gift card option is a merchant processing service that you shouldn’t pass up. Learn more about how you can start a small business gift card program today!