Small businesses are constantly looking for ways to boost income, and one of the most effective ways to increase sales and drive revenue is to introduce a gift card program. People always need that special gift for a friend or loved one, but often have trouble finding the perfect present and don’t feel comfortable giving cash. And that is where the plastic gift card is a wonderful invention. It is a more thoughtful gift than cash but the receiver still gets to choose something they really like or need.
There are many ways a gift card program can improve your business and increase turnover.
Gift cards generate income
Every gift card sale represents a transaction and in this way, a gift card program generates income. Once a person buys that gift card you have, in effect, made a sale and generated cash flow for your business. This means that regular sales of gift cards add to the stability of your business income. These sales generate cash in hand and, even though the cash doesn’t convert into revenue from an accounting perspective until the gift card has been redeemed, it is money in the bank that can generate interest. A gift card program also limits the number of chargebacks by reducing credit card transactions, thereby saving you money as well.
Gift cards are a great marketing tool
A gift card program is a great marketing tool for any business, big or small, and helps spread brand awareness by introducing new customers to your products and bringing new customers through your doors. The purchaser of the gift card will usually choose it for someone that they know will enjoy your specific products or services. Let’s be realistic, you don’t buy your friend a gift card for a hardware store if they don’t enjoy DIY. And of course, if the receiver of the gift card is a new customer, and enjoys the experience of shopping in your store, they will be back, again and again, thanks to that one gift card purchase. To make the most of this marketing opportunity and build your brand, include your logo, business name, website and contact details on the plastic gift card. Printing and design services at Quickcards are efficient and they provide a high-quality product you can be proud of.
Gift cards increase income
Gift cards also create what is known in the gift card industry as “breakage”. This represents the average gift card balance that is never redeemed by the customer. This is typically 10 to 15 percent of the gift card’s value and represents income that can be offset against labour and inventory costs. And of course there are also gift cards that will never be redeemed but they are not a loss for your business because they have already generated cash flow for you. Another advantage of a gift card program is that it allows you to capture what is known as “the difference”. According to studies, nearly 72% of shoppers using a gift card will spend 20% more than the value of their card on their purchase. This means more money in your till.
And remember gift cards don’t only work for stores that sell physical products. If you’re in the service business, you can also have a gift card program where the card can be exchanged for services like manicures, pedicures, a carpet shampoo, a consultation with a dietician, or almost anything you can imagine.
Introducing a gift card program for your business can be quick and easy. If you already have a point of sale (POS) system to manage your sales, there will often be built in software to support a gift card program or the capacity for an add-on. Then all you need to do is acquire the physical gift cards from a gift card provider, like Quickcards, who specialize in printing plastic gift cards and your gift card program will be up and running in no time at all.
