For many shoppers, gift cards are a godsend. They make shopping easy when you don’t quite know what to get the person you’re shopping for. Then again, gift cards also make it easy to shop for someone when you know exactly what he/she would like. As long as a shopper knows the favourite stores of his/her gift recipient, a gift card is the perfect gift!
Let’s suppose you know a friend’s favourite clothing store. You may not want to haggle over the size, colour and style of the item you’re thinking of. Instead, a gift card will guarantee the recipient that he/she will be able to pick whatever article of clothing he/she likes best.
Gift cards help last minute shoppers make quick decisions.
The ability to buy a gift card is especially beneficial for last minute shoppers. We’ve all been there. You simply run out of time during your busy schedule and realize you haven’t picked up a gift for the birthday boy’s party tomorrow. A gift card takes care of the hassle of trying to figure out what to pick up.
Gift cards allow shoppers to spend more.
Gift cards are great for recipients too. As mentioned, they allow them to buy whatever it is they want. And they get to do so for free! As a result, many gift card users end up spending more than the value of their cards. The way they see it, they’re getting a significant discount on the item or items being purchased. “According to giftcards.com, 70% of consumers will spend more than the value of the card,” reveals New Orleans-based Precision Payment Systems.
They go on to point out that selling gift cards presents very little risk to business owners. When you think about it, a gift card sale is the equivalent of getting paid for nothing. Before the gift card is redeemed, a merchant has already earned the money that is meant to be spent on an actual item. In many cases, gift cards don’t get redeemed. What that means is that the money is the merchant’s to keep without having to relinquish any goods. Talk about making a profit!
“There is also very little risk involved for the business, as the business gets paid in advance for any products or services rendered when a gift card is purchased, and that revenue is realized whether the card is used or not,” Precision Payment Systems explains, “Depending on your state’s laws, you may even be able to keep the remaining balance on gift cards.”
Are you selling gift cards in your store?
At Canadian POS, we proudly offer electronic gift cards which we confidently describe as the perfect solution to grow your business. Electronic gift cards encourage repeat business, attract new customers and boost sales all year long.
Our EGC solution maximizes stored value card sales with a complete package of marketing features. Ever mindful of your business needs, simple administration and top-notch security are built-in features to make program management simple and cost-effective. For more information, call us at 1-877-748-2884 or email us at info@localhost.