This might sound a bit crazy. But business owners will soon have to prepare for the end-of-year holiday season. Yes, we’re only just getting used to the fact that the summer has officially ended. And school only started back up a few weeks ago. But, in the business world, it’s incredibly important to always be thinking ahead. And the smartest business owners know that preparing for the holidays is a mission to begin long before the holidays are here.
If you’re a business owner, you’re likely considering new ways to attract customers to your stores. With gift shopping about to become a big-time to-do in the coming months, you’re going to want to make your store one that is visited frequently in order to buy gifts. So how can you guarantee yourself an increased number of holiday shoppers this year? The answer lies in selling gift cards.
“If the fact that gift cards continue to grow in popularity with over 80% of consumers purchasing or receiving gift cards each year doesn’t tell you that gift cards are at top-of-mind for consumers, certainly the fact that there are literally well over 100 gift card-focused apps between the iOS and Android marketplaces will,” writes Euphemia L. B. Erickson on FirstData.com. Still need reasons to sell gift cards this year?
Here are three ways that gift cards work to grow your business:
1. They generate more revenue. When people shop for gifts, they don’t all necessarily know what they’re looking to buy. Gift cards add a revenue stream to your company that speak to the needs of the unsure shopper. A gift card presents yet another in-store “product” that can be sold that doesn’t even require the purchaser to know exactly what his or her gift recipients likes. Gift cards, therefore, are bound to make you more money.
Erickson also points out that gift cards encourage recipients to spend more money than the face value of their cards. “While the idea that ‘the more ways for customers to connect with your business, the better,’ certainly not be new news to you, perhaps the fact that consumers spend, on average, $23 more than the original value of the gift card they receive may be – an additional $23 spent in your store than they would have,” she writes.
2. They build brand recognition. Businesses that sell gift cards develop a certain type of prestige by doing so. The “small time” and “mom and pop” labels are often dropped from companies who offer gift cards to their customers. This is because ALL of the major brands are doing it. Why not associate your brand with the “major players” so that you get to grow its reputation? Newtek points out how the benefits of this are twofold.
“First, someone has vouched for your business by giving your gift card to someone else – probably to a friend or family member,” says their website, “We all understand the power that word of mouth has to create trust and awareness, and a branded gift card does so tangibly and overtly. Just as importantly, a gift card serves as a reminder, like an advertisement that burns inside a wallet or purse.”
3. They bring more customers into your store. “On average, consumers with gift cards go back to the business 3+ times to spend the balance of the card,” informs Erickson, “Each additional time a customer enters your store is an additional opportunity to pitch them complimentary products, sale items only available in-store, and more.” Again, if you’re looking to grow your customer base during this year’s holiday season, selling gift cards is the way to go!