In our last blog, we revisited the topic of gift cards and highlighted some of the main benefits that they provide both shoppers and merchants. The benefits to recipients should be obvious. Receiving gifts when celebrating a special occasion always provides a wonderful feeling. However, receiving the perfect gift – one you definitely know that you want – is even better. And that’s what gift cards are able to do!
But why should you sell gift cards in your store? Here are three reasons:
1. They are automatic sale boosters. When you decide to sell gift cards in your store, you automatically add a much-sought-after product to your shelves. It’s a product that is very popular and widely purchased. So, you’ve pretty much guaranteed yourself an increase in sales by adding gift cards to your product list. As well, gift cards provide pretty big incentives for new people to start visiting your place of business. Is there a better way to recommend your store?
“While a person could independently give a friend or loved one money and request that they use it at your location, this in no way guarantees you revenue or a customer,” writes Rita Harris on TryItLocal.com, “Gift cards guarantee the former and a high likelihood of the latter. While large purchases come with down payments, most small businesses don\’t receive down payments for services, but with a gift card you receive money up front no matter if the card is ever redeemed or not.”
2. They often lead to larger purchases. When gift cards are sold, it doesn’t necessarily mean that you’ve made as much as you’re going to make on the transactions. Generally, gift card redeemers will spend more than the face values of their cards. That means that your gift card sales are essentially providing you with greater opportunities to make bigger profits. 1800Accountant.com explains further.
“Many gift cards are for smaller amounts like $10, $15, or $25,” details the site, “However, the prices at many of these stores that offer them do not always fall within these smaller amounts. This is why the use of a gift card can lead to a larger purchase. In other words, if a customer buys something for $50 but only has a $25 gift card, they’ll likely use it to go toward this purchase, knowing they are saving money.”
3. They grow your customer base. Earlier, we mentioned that gift cards make the best types of recommendations a store can get. The more you sell, the more “recommendations” you know are out there. Selling gift cards in your store is a surefire way to get more customers coming through its doors. Remember, as well, that each time a person uses a gift card in your store, it provides you with an opportunity to spark a new customer relationship that can last a long time.
“Never forget that a new customer with a gift card is a wide open door for you to win over a new customer,” Harris reminds us, “Not only will they rate their experience independently, but it is likely the person who provided the gift card will ask them about their experience. The gift-giver is a supporter of your business; make sure the card-holder has reason to give a great report on their experience.”