Gift cards are a go-to for customers for a variety of reasons, including effortless convenience, wide ranges of options, and consistent gift-recipient acceptance. They are used by merchants all over the world to generate awareness and increase sales. Gift cards may help you engage your clients and keep them coming back by including them into your marketing mix. To give you a better understanding, this blog will provide 5 ways that gift card can support retail businesses.
When gift cards are purchased, they bring in money, but they also provide a possibility for more revenue when they are redeemed. In reality, gift card holders are also more inclined to buy some of your higher-priced products since they perceive the gift card as “free cash.” Here is another interesting revenue fact: according to Retail Touchpoints, 72% of consumers who go to a store to buy a gift card for somebody eventually buy things on themselves.
Bring new customers
Gift cards can help your business reach consumers who might not have visited your store. In many cases, customers who already know and appreciate your company will buy gift cards for their friends or families. This will help you expand your client base.
Moreover, when requested to make a donation to a local fundraising event, you can also donate gift cards. By giving a retail gift card instead of a product, you give the recipient the option to use their award and maybe spend more money. Giving gift cards to fundraisers increases brand recognition and establishes an image as a company owner who cares about their community.
Encourage loyalty and repeated purchase
Several companies offer gift card promotions, particularly during the holidays, and they may be an excellent method to boost customer loyalty. Customers who buy $100 in gift cards, for example, will receive a complimentary $10 gift card.
This sort of deal may persuade a customer to spend more money in the next time they come to your store. In the long run, it can increase the average value of your gift card sale. Businesses can also make the extra gift cards active after the holidays and for a limited time, which will help further increase sales in the first quarter of the year.
Support omnichannel retail
Gift card can be a great way to facilitate the omnichannel shopping experience. Many retail businesses nowadays allow customers to use gift cards in different channels, regardless of online or offline platforms. This can not only encourage more sales in both channels but also provide a more seamless and convenient experience for customers.
Manage returns and rewards
Offering a gift card to a customer who wants to return an item but doesn’t have a receipt is a wonderful method to retain their money in your store. This is also an option if a client wishes to return an item after the tolerance period has expired. You’re more likely to keep the consumer pleased and return to spend the money later if you give them a choice.
A retail gift card can also be used as a kind of incentive for staff and consumers. As a reward for their hard work, you can offer your top salesperson a gift card. Another way to do this is to thank your VIP customers with a gift card as well. They can also be included in your loyalty program as a reward for making numerous transactions with your company.
Overall, how you decide to implement gift card in your retail store will determine the benefits you can have. If you want to know more about ConnectPOS and gift card functions, our team is more than ready to help. Contact us here!