Who doesn’t love receiving a gift card as a gift? We imagine only a gift card from a store you would never visit is a gift you’d be okay without. Gift cards, however, are generally given as gifts to recipients who would benefit from the products and services offered by the companies represented by the cards. Most “big-named” retailers sell them. But gift cards are not exclusive to the so-called big names.
How can your small business benefit from selling gift cards? It’s widely known throughout the retail industry that gift cards boost sales. Firstly, they add a completely new revenue stream by representing a new product for your store to sell. Secondly, they help for your store to earn money for products that haven’t actually been sold yet. Thirdly, gift card recipients are known to spend more than the amounts of their gift cards.
That means that every time you sell a gift card, you are inviting someone back into your store who is bound to spend even more than the cost of the card. This simply means more profits for you! As well, let’s not forget that gift cards are just that – gifts. And there are reasons to buy gifts all year-round. Birthdays, anniversaries, graduations and engagements – there are a bunch of reasons why shoppers look for gift cards throughout the year.
It should probably go without saying that when the holiday season arrives, gift card sales go through the roof! If you’re a retailer looking to have a successful holiday season each year, you’ll definitely want to have gift cards available for your shoppers. They work for stores of all types in varying industries. However, many would argue that restaurant gift cards are among the most popular.
On the Restaurants Canada Blog, Fernanda Gianone explains that “in Canada alone, the gift card market is estimated to be worth more than $8 Billion annually, considering that 46% of consumers are more likely to buy a gift card over a gift today.” She also mentions that gift cards are known for helping businesses to differentiate themselves from their competitors, develop customer loyalty and bring in new business.
What are e-gift cards? Gianone specifically highlights the benefits of e-gift cards, which work just like traditional gift cards, except that codes are given to the purchasers and/or the recipients so that they can be used to make purchases online. “Whether they will complement your existing gift card system or will be a completely new feature, e-gift cards are a proven way to increase sales and help you capture your share of a $313 billion dollar global industry,” she writes.
At Canadian POS Corporation, we have many of years of experience helping Canadian business owners reap the benefits of selling gift cards. We offer a gift card program that has successfully grown businesses throughout our nation for years. Our electronic gift card solution maximizes stored value card sales with a complete package of marketing features. Contact us to today to learn more about what they are!