Every business should have gift cards—it’s that simple. Many businesses hesitate, thinking that their model doesn’t lend itself well to gift, but in doing so they’re forfeiting a simple, steady revenue stream. Here are five ways that gift cards benefit a retailer or restaurant of any kind:
- Increase in Sales
Once you sell a gift card, the customer must use that money at your business. But most customers will spend more than just the card’s balance— on average 20% more.
2. New Customers
A gift card is a recommendation with an obligation attached—if a new customer receives a gift card to your store or restaurant, they’re nearly certain to visit.
3. Brand Awareness
Every time a cardholder glances at their wallet and sees your logo, they’ll be reminded of you. When the time comes that they need an item, they’ll think of your store first.
4. Holiday Boost
Holiday shoppers running out of time choose gift cards as gifts. The mere act of displaying gift cards has been shown to boost purchases.
5. Strengthen Loyalty
On average, customers visit a store twice to use their gift card balance, and a customer that has already come to your store multiple times is very likely to return.
According to MarketWatch in 2018, consumers spend $130 billion in gift cards per year and leave $1 billion unredeemed. That is Free Cash for you, or at the very minimum, you are getting a bit of cash flow float from each gift card sale until the card is redeemed. Can you see dollar signs!?
As always, we are here to help. Let us know if you have any questions.
