Don’t wait until the holiday season to begin selling gift cards. If you’ve been contemplating whether or not you should add gift cards to your product list, contemplate no more. There is no wrong time of year to sell gift cards. They are known to encourage repeat business, attract new customers and boost sales all year long!
So what are you waiting for? Here are three reasons to begin selling gift cards now:
1. They will help to significantly increase the number of customers who visit your store.
Gift cards attract shoppers. It’s as simple as that. By adding them to your product line, you are automatically making the shopping process a lot easier for people. Keep in mind that gift cards not only attract purchasers, they attract recipients as well. Remember that with every gift card you sell, you gain the potential of welcoming a new customer into your store. The gift card recipient is someone who may just become a loyal supporter.
“Make no mistake about it, gift cards will bring in more customers to your business,” insists John Rampton on Due.com, “First Data discovered that more than 10 percent of gift card recipients had never (or rarely) visited a merchant’s location before receiving a gift card. This is definitely more powerful than ‘word-of-mouth’ advertising since your most loyal customers are actually paying you money to gain new business.”
2. They will help to boost customer loyalty.
Gift cards are excellent ways to encourage your current customers to keep coming back. And that’s because they can be used as incentives and not just items for purchase. Consider giving some of your most loyal customers gift cards for free. Not only will you guarantee that the gift cards are used, but you will assure yourself of increased customer satisfaction. Insight Software recommends that you utilize your gift cards as contest prizes.
“You can…improve client engagement by holding a contest and giving away a gift card every month,” suggests their website, “Remember that the cost of giving away a free gift card is actually much lower than its value; it is only the cost of providing the service or of purchasing your inventory.”
3. They enable you to generate profits before actual sales are even made.
As you know, a gift card represents the “promise” of a future purchase. You immediately receive money for a sale that hasn’t officially been made. If the gift card is never redeemed, you obviously still keep the money – and profit in an even greater way, as a result! And when the card is redeemed, you get the opportunity to upsell the recipient. History has shown that gift card recipients spend more than the value of their cards.
“Instead of waiting to make a sale, whenever a gift card is purchased or reloaded, that cash is yours until the card is redeemed,” says Rampton, “This upfront money can be used to handle expenses like payroll, inventory, rent, or utilities.”