What’s the most popular type of holiday present as well as a go-to gift for other special occasions? If you guessed gift cards, you’re spot on! According to WalletHub, gift card sales are projected to top $160 billion in the U.S. Consumers love gift cards because of their convenience, personalization and suitability to the recipient. Businesses love gift cards because they attract new customers, increase sales, raise brand awareness and drive customer loyalty.
More than 50% of gift cards are used over multiple visits and purchases, providing the opportunity to upsell additional products when customers return to your store. If your business doesn’t have a gift card program, you’re likely missing out on a viable opportunity to build your business.
Consider the following reasons why gift cards can benefit your business while meeting your shoppers’ needs.
Customers Spend More Than The Value Of Their Gift Card
One of the main reasons your business can benefit from a gift card program is the additional revenue it brings in. Gift cards are often purchased to treat friends and family to new experiences and products. Once in your business, customers are likely to enhance the value of a gift card with their own money. According to GiftCardGranny.com, an estimated 65% of gift card recipients spend an extra 38% more than the value of the card. Shoppers with gift cards are also more likely to splurge on big-ticket and full-priced merchandise, since they have “free money” to spend.
Convenient For Shoppers
Instead of wasting time, money and energy trying to find the perfect gift, consumers find the ease of gift cards appealing and highly value the convenience. Merchants also love that gift cards bring in foot traffic to their physical locations and visits to their websites – building brand awareness and exposure among customers not already familiar with their company or product.
“Gift cards allow the recipient to buy something they need or something they would not typically buy for themselves,” says Amanda Fetzer, Clinical Aesthetician at Carmen’s Day Spa & Wellness Center in Hendersonville, TN. “Many of our repeat clients were first introduced to us because they received a gift card.”
Compete With National Retailers
While small businesses face stiff competition against behemoth retailers, implementing a gift card program can level the playing field a bit. Sure, it’s easy to grab a gift card from a large retailer or big box store without putting much thought and effort into it. But gift cards from specialty or locally owned stores feel more thoughtful and tailored to the recipient’s wants and needs. Just because gift cards are quick and easy, doesn’t mean they can’t also provide an intimate and emotional gift for someone special. Without a strong gift card program, small businesses may not be able to keep pace vying for those gift card dollars, not to mention attracting new and maintaining loyal customers. Make sure your small business POS can accept gift cards, so your customers can shop small and support your business.
Cut Down On Fraud
Security is a major concern for businesses and consumers. Because most gift cards need to be registered in order to provide a level of protection against loss or theft, they’re more secure than giving a certificate or cash. Once registered, most gift cards can be easily replaced. And because balances are updated automatically when a purchase is made, it greatly reduces the risk of misuse through cash-back schemes. Fetzer says it’s a “win-win for both customer and the business because it makes the customer feel more secure, while protecting the business against potential fraud.”
Boost Pre And Post-Holiday Sales
Gift cards not only boost sales during the holiday shopping frenzy, but they can also boost your first-quarter revenue as recipients spend their present after the holiday rush. In fact, many merchants promote their merchandise with post-holiday specials, promotions and discounts exclusively to gift card holders. And because customers can select their merchandise, it reduces the amount of returns and the high cost of managing them.
Starting Your Gift Card Program
Whatever your business, gift cards are a relatively inexpensive way to market and brand your goods and services. It can give you a leg up on the competition and help you stretch out the holiday season even further. Talus Pay can help your business by getting your electronic or physical gift program off the ground. Businesses can choose between preset amounts or let their customers choose their own amount. The coolest aspect of the Talus gift card program is that it can all be done in-house rather than through a third party. That’s an extreme rarity across the payments space and makes it much cheaper than most programs you’ll see across the industry.
Other perks include:
- No upfront cost
- The first 25 gift cards are included for free
- The first 100 gift card transactions are free each month
- Card are reloadable and reusable
- Fastest turn-around time for ordering cards in the market on stock cards
Get your gift card program rolling so you don’t miss a sale. Contact a Talus Pay representative today!