Why Do Businesses Need Gift Cards?
Gift cards are the number one item on Americans’ wish lists. In fact, 57% of adults prefer receiving gift cards and 77.3% of holiday shoppers indicate that they will buy at least one gift card. Customer interest in gift cards continues to rise, and it is crucial that your business carries and promotes gift cards.
Gift cards let loyal customers refer other potentially like-minded customers to a business. The consumer who purchases the car will usually promote a product, service or brand that a business offers as part of the gift-giving process. The cash on the card is a great incentive for the recipient to visit the issuing merchant and test drive a product or service. If they don’t like it, the business is only out of the cost of producing the card, which they usually can absorb with the margin of the purchased product. If they do like the business, the customer may become a returning customer or spend more than the value on the card.
Gift cards usually come in neat amounts ($25, $50, or $100) however, sales tax typically makes spending exactly that amount hard to do. Most customers will find something they like and pay a little extra. Around 60% of consumers who receive gift cards spend an average of 20% or more than what is on the card.
Gift Card Options from Total Information Solutions
Selling and redeeming gift cards is easy with NCR Counterpoint! Design the cards to fit your business, or have our professional designers create a card for you. Display the cards in sleek displays at point of sale and redeem with the click of a button! Cards are reloadable and opportunities for use are endless.
Promoting Your Gift Cards
You’ve got the slick gift card display at your point of sale, you sell them on your website but you are struggling to see a lift in overall gift card purchases. Try some of these simple gift card promotion ideas to increase gift card sales.
Create a package
If you want to establish significant gift card sales at your business, you need to sell an experience. Try offering a unique experience with a gift card, from a prix-fixed meal, to a day of guided fishing offering an opportunity to purchase different types of packages helps the buyer feel like they are providing a more personalized gift.
Clean up Your Website
Do not underestimate the role that convenience plays in the purchasing of gift cards. While not everyone buys their gifts online, most people at some point will be browsing the web for gift ideas last minute. Including banners, or information about your gift cards on your homepage with easy, user-friendly navigation is key to driving gift card sales-especially during the holiday season.
Use Gift Cards as Promotional Items
You can drive customers to your business with gift card related promotions. For example, give customers a $10 gift card for every $50 they spend. Or offer a promotion where people can purchase a $25 gift card for $20.
Market gift cards as “the perfect gift for (fill in the blank)”
Don’t know what to get a teacher/client/employee/neighbor? Gift cards are suitable for just about any recipient so make sure to emphasize that in your marketing message.
Utilize social media to promote gift card sales. Offer a gift card giveaway to encourage people to sign up for your newsletter or follow you on social media, and post about your gift cards on all social media channels, especially during the holidays! You might also consider running boosted ads to make sure these posts get more eyeballs.