Guess how much the average holiday shopper spent on gift cards in 2016.
Not $10. Not $20. $46!
Besides being a hot item to sell, gift cards are extremely powerful marketing tools for any business. They’re a great way to attract new customers, customers that are more likely to return to your business in the future.
So how does this work? And is your business ready to sell gift cards?
Why Gift Cards Work on the Front-End
Why is it even a good idea to sell gift cards in the first place? First off, gift cards barely cost anything to make, yet they can provide significant benefits to a business’s bottom line without the merchant having to make much of an effort. Also, pricing is flexible. You can then sell them in tiers – $5, $10, $25, $50, etc – depending on how much your customers are willing to spend.
Gift cards are the perfect go-to present for gift-givers. When you know what someone’s interested in but don’t know what they specifically want, a gift card to their favorite store is the perfect way to give them the power to choose their own gift. And that’s not all. Studies show that 72% of gift card users will pay more than their gift card’s value when they decide to redeem that card.
The conclusion? People are more willing to spend at your business when they come with a gift card, and some of those people would never have even purchased anything from you if they didn’t have a gift card at all.
How Gift Cards Increase Customer Loyalty
Gift cards make you money upfront, but what else do they do for your business? They’re a great way to increase your customer base. This follows the same principle mentioned above: gift cards introduce new customers to your business, many of whom wouldn’t know about you otherwise. Convert them into long-term clients and you’ll see a huge jump in revenue for your business.
How do gift cards convert those first-time visitors into long-term customers? For new customers, gift cards are essentially a trial experience – they get to try your business out for free. But there’s another side to it. That potential customer is now in front of you, which means it’s your chance to make a lasting impression on them. If you make their shopping experience special, they’ll trust you and want to return to your business.
One other thing: customers don’t have to spend their entire gift card in one go. They can always choose to come back to use the rest. The more time they spend at your place of business or on your website, the more likely they’ll be to come back again once they use up their gift card.
How Do You Accept Gift Cards?
So, you know you want to accept gift cards. Now you’re wondering how to make that a reality in your business. That’s where an EMV terminal/POS system comes into play.
Most EMV terminals and POS systems can accept gift card payments, though you should probably double check before purchasing one for your business. When you sign up for our gift card program, you get access to a host of cool features: you can customize the design of your gift cards to match your branding, and you can choose when to load value onto your customers’ gift cards – whether that be before or after they purchase the card – to thwart any attempts at fraud.
The key is simplicity. Gift card transactions, like any other method of payment, should be seamless. Checkout is an important aspect of the shopping experience, so make sure yours runs without any hiccups.
Is Your Business Ready for Gift Cards?
That’s what you should be asking yourself. Does it make sense to offer gift cards to your customers?
If you’re ready to start selling gift cards, then you’ve come to the right place. Click here – we’ll analyze your latest merchant statements for free and give you more information on how to launch your own gift card program.