Customers and small companies may both benefit from gift cards. For consumers, they provide a more considerate option for giving than cash; for companies, they assist combat slow periods (I’m looking at you post-Christmas) and attract both new and returning customers.
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Consider it. Every consumer who visits your store or looks for a gift card online and is unable to discover one does not recommend your company to others and instead takes their business elsewhere. You forfeit your potential for immediate and future financial gain. Over time, this may mount up quite a bit.
If you don’t presently support gift cards, you should because doing so will simply result in money being lost. Gift cards serve as both a marketing and revenue-generating tool at the same time.
Thus, to sum up gift cards:
Present a different offering to your clientele.
frequently bring in additional patrons, offering the chance to establish lifelong new clients.
Facilitate the sharing of your business by your consumers.
assist you in competing with bigger companies and shops.
Boost your revenue and earning capacity.
Everything you need to start taking gift cards and expanding your business with them is in this article. You’ll be sure about how to handle gift cards in the best way after reading this, from selecting what kind to different marketing concepts.
Why are gift cards so beneficial to companies?
Let’s discuss the why in greater detail before moving on to the how.
1. Sales of gift cards are skyrocketing
The gift card market in the United States grew at a Compound Annual Growth Rate (CAGR) of 29.1% from 2015 to 2019 and is expected to increase at a rate of 18.1% between 2020 and 2024, according to Research and Markets. Furthermore, by 2024, the market for e-gift cards is projected to reach $101,979.2 million.
You must take advantage of that enormous market. A gift card is the ideal upsell for loyal clients. You should make it simple for customers who adore your product to recommend it to others.
It’s also important to note that gift cards are becoming less symbolic in culture. Gift cards are becoming more than simply an impersonal present; they’re becoming a means of introducing someone else to a different aspect of society. Gift cards are no longer the only way that big corporations provide gifts at the last minute thanks to the growth of “craft” enterprises and little, impactful brands.
Present cards now say things like, “Hey, check out this amazing Thai restaurant on the east side,” rather than, “Hey, here’s a gift card because I forgot about you.”
And my goodness, that change has a ton of commercial potential!
2. Supporting gift cards increases your sales margins.
Gift card holders frequently spend their money on higher-margin products. They are more inclined to purchase anything new rather than something off the clearance rack if they already have “free” money.
Higher margins for you and your company follow from this.
3. Not every gift card is utilised
Since you’ve already gotten the money, the statistic that says 10% of gift cards are unused works to your advantage.
4. Gift certificates attract new clients.
Of course, some give them to their friends who are addicts, but the addicts themselves send gift cards to their favorite stores and merchandise to those they wish to enjoy the experience with.
New contacts equal new clients, which means there are more chances to grow a more devoted and sizable clientele.
Gift cards may also be used in creative marketing campaigns such as kickback incentives, where you give a buddy a $50 gift card and they pay you $10 back, etc.
5. The ability to compete against larger canines
Selling gift cards gives you the opportunity to take on retailers by enabling customers to send more individualized gifts to their friends and family.
6. Counteract the post-holiday slump
For a lot of B2C enterprises, particularly retail, January is a bad month. After the holiday rush, there’s usually a sharp decline in returns. During such lean months, supporting gift cards help you retaliate by attracting fresh talent.
How to purchase gift cards for small businesses
Where do you obtain gift cards, then?
Generally speaking, though, via a merchant services provider. These businesses offer “merchants” a range of services, such as internet gateways, merchant accounts, and payment processing.
Verify that your MSP places a high value on longevity and openness. They should earn your business on a monthly basis and it should seem like a relationship. There are several MSPs in this business who attempt to smuggle in dubious contracts and exorbitant management fees. Refrain from letting them defeat you!
We provide gift cards that effortlessly link with your current point of sale system, opening up a plethora of beneficial business opportunities. Additionally, your reporting dashboard will conveniently display all of your data, whether you are a current Tidal user or have switched to our merchant service suite.
Your data is consolidated there.
Thus, you may monitor gift card sales and see their annual fluctuations just like you would with any other product category. It’s also rather simple to understand how supporting gift cards affects your bottom line because you can reload, pay, track, and redeem coupons straight from your point of sale.
In addition, we provide affordable rates and design support with cutting-edge templates that you may select from and alter.
