What are the benefits of gift cards for small businesses?
As a small business, you may be wondering whether it’s worth going to the trouble of organizing gift cards for sale. However, if you don’t have them you might be surprised to discover just how many opportunities you’re missing out on.
Gift cards have many benefits for small businesses and have the potential to really add revenue. Here’s a closer look at just some of the reasons why gift cards are important for any small business.
Increased spending
When you sell a gift card to a customer, there’s not just the chance of increasing traffic to your store, there’s also the possibility that you could up getting a higher value sale too.
The majority of gift card recipients will spend more than the value of the card, instantly increasing sales. Studies suggest that this overpayment can be pretty significant too, with as much as two-thirds of gift card recipients spending around 40% more.
An easy way to advertise
Marketing and advertising are a necessary evil if you want to build your brand but very often it can feel like you’re spending a lot of money and not getting back much in return.
Gift cards are a simple and easy way to get your name out there, and the best part of it is that you won’t have to spend a single cent! Every time the customer gets their wallet out, they’ll be reminded of your store when they see your gift card. It’s a great form of product placement without spending out for a giant billboard advert.
Expand your presence
It’s never been easier or more economical to have your own custom gift cards which show off your business name and branding. But you don’t need to confine these to your own store; an excellent opportunity for distribution exists by arranging for them to be sold elsewhere.
Think of your target market and the places they’re likely to visit and then find suitable outlets to sell your card. This could be grocery stores, malls or convenience stores; with your card sitting side by side alongside some of the leading brands, you’ll benefit from the association and could reach far more customers than before.
Fewer returns to deal with
One of the most inconvenience issues a store has to handle is the return of unwanted merchandise. If a gift doesn’t quite hit the mark, the recipient may well return the goods to your store.
A gift card neatly sidesteps this issue by putting the choice into the hands of the recipient. They don’t have to deal with a gift they don’t really like and instead, can simply visit your store when they’re ready to buy something they love.
This offers benefits for the customers, both the recipient and the giver, but it also is a big advantage for you as you will avoid the saga of merchandise returns.
Gift cards benefit every business
The above points should convince you that gift cards are an essential for every business and can offer real advantages in the market. With different shapes and designs, as well as custom gift cards too, it’s never been easier to make your presence known.
