Why You Should Sell More Gift Cards
If you’ve never considered gift cards as a serious stream of income, you might want to reconsider your position. Safe, secure and extremely versatile, they’re the ideal solution for all kinds of situations.
There are many reasons why gift cards could help you become more profitable as a business; here’s a look at just a few of them.
Extend your customer base
Even though you may well have a solid base of loyal customers, every store is always looking to consolidate and expand to reach new audiences. One easy way to achieve this is by selling your existing customer’s gift cards.
If they give the gift cards to friends, family or work colleagues who aren’t familiar with your store, you have the chance to convert the recipient into a regular customer. The gift card gets them through the door, or onto your website, and hopefully, they’ll be so impressed with your products, services, and set-up that they’ll want to return. If they’re really blown away by your store they may even purchase gift cards themselves in the future, a further opportunity to reach new people!
Claim a share of the market
The market can be very competitive at peak times of the year, such as Christmas, so it can be difficult to stand out from the crowd. Gift cards are a great way to be able to claim your share of the sales, even if the items you sell aren’t something that would normally be purchased for that season.
Studies suggest that at least half of all consumers buy at least one gift card over the holidays. If you make sure that your gift cards are visible and on display, and with an eye-catching design you could find that it’s a winning strategy.
Receive more revenue
Gift cards can be a great way to not just attract new customers to your store, but also to increase the amount of revenue you actually receive. As well as the cost of the gift card being purchased, there’s also the potential to earn more dollars when it’s redeemed.
Research shows that recipients like to spend the value of their gift card all at once, rather than leaving an outstanding balance. In the majority of cases, this meant that the item they purchased exceeded the value of the gift card. In fact, one study showed that in 71% of cases the individual spent more in the store than was held on their gift card.
This means that selling gift cards almost guarantees that you’ll receive further revenue on top when the recipient comes to spend it.
Gift cards are an all-round winner
Gift cards are great for businesses because it provides instant revenue and eliminates the inconvenience of buyers returning unwanted gifts. They’re convenient and secure for customers and offer a solution for when they’re not sure what merchandise to buy. Gift cards are an all-round winner and a strategy that every business should seek to optimize.
