The branded gift card is changing the market for many retailers. Not long ago, a gift certificate was a special item kept in the merchant's drawer and sold upon request. Today, the gift card is a popular sales item that is prominently displayed for purchase. Merchants are jumping at the opportunity to offer their own gift or loyalty card to customers.
Is there a benefit to offering gift cards?
Gift cards increase sales.
Many retailers see an increase in sales when they begin offering gift cards. A gift card allows the giver to offer more freedom in a package that is more thoughtful than cash. This can also attract new customers who are looking to spend their gift funds. These new shoppers often spend a little more than their card balance, raising the total sale.
Gift cards increase brand awareness.
A branded gift card is a moving advertisement for your business. A custom gift card displays your colors and logo widely as the card is passed from person to person. Your cards hanging on a gift rack act as a mini billboard collection for your company, building awareness of your brand. The advertisement value alone is a great reason to offer gift cards.
Gift cards increase customer loyalty.
There are many ways to foster loyalty with a gift card program. Some merchants offer $5 gift cards as promotional items. This brings customers back into the store for a second visit, in which they will most likely spend at least a few dollars over the value of the gift card. Other merchants offer re-loadable cards to encourage regular repeat business. Finally, a loyalty card can help merchants collect marketing data and understand customer buying trends.
Gift and loyalty card programs are easy to implement. An experienced merchant services provider can help you create marketing opportunities to maximize the return on your investment into your business.
To learn more about creative marketing with gift cards, contact us today.