3 ways branded gift cards can improve your sales
Gift cards. They’re the perfect, convenient gift. For givers, they’re easy to get, come in virtually any amount, and offer the recipient the ability to choose their own gift. For recipients, gift cards offer not only choice but also an easy payment method. Upon activation, a gift card spends just like a debit card.
But the benefits don’t just stop with consumers. Small businesses like yours can benefit from offering a gift card program. And with the rise of ecommerce, gift certificates and cards have become easier to redeem than ever. In this article, we’ll talk about the three ways gift cards for your business can increase your sales.
What’s a branded gift card?
That's a great question, and the answer is simple – it’s a gift card that customers can only use at your business. Because of this, it’s called a closed-loop gift card. In contrast, prepaid cards from the credit card networks like Visa and Mastercard are open-loop gift cards, because customers can use them at more than one retailer. Out of these two types of gift cards, we’ll focus on the closed-loop card.
Branded gift cards give you the ability to create a unique card design and develop a card number system. In many cases, you’ll work with your payment processing provider to ensure your branded gift cards work seamlessly with your point of sale (POS) system.
Increase your brand awareness
One of the most significant advantages of branded gift card sales is increasing your brand’s awareness. Customers who like your business can give gift cards to friends, family or colleagues. When they give the physical card or e-gift card, they’re introducing a new audience to your business and products, with no risk to the gift card recipient. They get a full customer experience without spending any of their own cash. And if they like your business, they may become repeat customers, increasing your customer base.
Increase your holiday sales
Another advantage of gift cards is that they’re perfect for the holidays. Again, shoppers want to find gifts for their family and friends, and gift cards make it easy. The sales also help your bottom line. Studies show that consumers who have gift cards spend more than the card’s value at a merchant. Not only did you make money on the original gift card sale, but there’s also earning potential when the gift cardholder comes back into your business to redeem the gift card. Especially around the holidays, consumers are more likely to spend money, and gift cards can help you increase sales by capitalizing on these trends.
Build loyalty and gain repeat customers
The third advantage of gift cards is that they provide more opportunities for your business to build customer loyalty. Gift cards are a great way to boost customer retention. Many businesses offer special loyalty program discounts or incentives to customers who purchase gift cards. Some of these customers may even purchase gift cards for themselves to get the loyalty card benefits. Gift cards are a great option because customers can reload them when their remaining balance is low, earning rewards in the process.
As you can see, gift cards can benefit your business by increasing brand awareness, sales, and loyalty. And with the same functionality of cards your business already accepts, gift cards are a slam dunk to increase your sales and grow your business. Discuss gift card solutions with your payment card processor to learn how you can implement gift cards in your business.
Heartland is the point of sale, payments and payroll solution of choice for entrepreneurs that need human-centered technology to sell more, keep customers coming back and spend less time in the back office. Nearly 1,000,000 businesses trust us to guide them through market changes and technology challenges, so they can stay competitive and focus on building remarkable businesses instead of managing the daily grind.