Gift cards are a retailer’s dream come true. You know why? Because gift cards are dreams come true for shoppers as well. People like to buy them. People like to receive them. So why wouldn’t people like to sell them? Perhaps, the reason is because the benefits of selling gift cards aren’t clear to all retailers. That’s where today’s blog comes in. Allow us to enlighten you to the various advantages that selling gift cards can provide your store.
Here are four:
1. They will help you to attract new customers. What business owner isn’t looking to grow his/her customer base? Keep in mind that gift cards are, in and of themselves, products. By selling gift cards, you are communicating to your customer base that you have new products to sell. To customers, this is the same thing as saying that you have new ways for them to recommend your store to others.
What are gift cards if they aren’t plastic rectangular recommendations? Each time you sell a gift card, you can be assured that its purchaser is telling someone else “try this store, I think you’ll like it.” By selling gift cards, you encourage new people to enter through your store’s front doors in order to peruse through items that they wouldn’t normally have been interested in had it not been for the gift cards they received.
2. They help you to increase your profits. It’s well known, within the retail industry, that gift card recipients often spend more than the value of their cards. The way they figure it is that they’re getting significant discounts on the purchases anyways – so it isn’t a big deal for them to spend a little extra to get the items they want. According to GiftCardGranny.com, “65% of gift card holders spend an extra 38% beyond the value of the card.”
It’s also important to remember that each time you sell a gift card, you’re earning money for having sold no actual item at all. The true sale occurs when the gift card is redeemed. The truth is, however, not all gift cards are redeemed. That basically provides you with automatic profits. In other words, gift cards help you to make money for selling nothing at all! “$1 billion gift cards went unused in 2013 compared to $750 million in 2014,” reports GiftCardGranny.com.
3. They help you to retain customers. Gift cards are excellent ways to provide credits. When customers return items to your store, you can use the gift cards to refund their money. The benefit of doing this, of course, is that it insists upon the credits being used in your store. With gift cards, you can ensure that none of your sales are ultimately lost through the return process. They help to keep the money spent in your store.
4. They will help to improve your brand’s image. Stores that sell gift cards are representative of the upper echelon of retailers. At least, this is the public’s perception. This is most likely due to the fact that all major retailers offer gift cards. If you’d like your brand to be considered one of the “big boys”, it certainly won’t hurt to add gift cards to your list of available products. There is no question that they will sell!
As GiftCardGranny.com points out, “with the gift card industry as a whole expected to reach $160 billion by the year 2018, gift cards are only going to become even more popular.” For more information on how you can begin selling gift cards in your store, please don’t hesitate to call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.