In our last blog, we revisited the benefits of selling gift cards in your store. But we did more than just re-explain why it’s important to offer them to your customers. The truth is that gift cards have the ability to help you grow your customer relationships. At the end of the day, you don’t just want a boost in sales – which gift cards will give you – you also want to grow the number of long-term customers your store has.
By growing your customer base with added loyal supporters, you will enjoy repeat business and the residual effects of extra word-of-mouth promotion. And, we all know what that turns into: more money! Simply put, gift cards bring more people into your store – both shoppers who wish to give them to others and gift card recipients looking to get something for “free”.
What’s “free” to recipients is $ for you!
Keep in mind that with each gift card sale, you earn money for something that hasn’t even been sold yet. When the gift card recipient picks that item up, you’ve already been paid for it. But here’s the kicker. Chances are that you’re going to make even more money from that transaction. Research shows that gift card recipients will end up spending more than the values of their gift cards.
“How often does your purchase come out to the exact amount of your gift card?” asks Annie Mueller on Investopedia.com, “Not often. About half of all consumers end up spending more than the face value of the gift card. For instance, according to studies the majority of shoppers who walk in with a $50 gift card will spend 20% more on their purchase in store.”
Gift cards help you to earn full price for your items.
Have you ever met a customer who didn’t enjoy a good sale? You’d be hard pressed to find a shopper who wouldn’t much prefer a discounted price on an item he/she intends to buy. With a gift card, you offer recipients significant savings even though you’re still selling your items at their full prices. What an excellent way to boost revenues!
“People shopping with gift cards are 2.5 times more likely to pay full price for products,” informs Mueller, “When buyers might hesitate if making a cash purchase, they often won\’t think twice when using a gift card. Obviously, for retailers, making full price on an item increases the profit; and consumers with gift cards are less likely to price shop, hunt for bargains or wait until items go on sale.”
Begin making more money by selling gift cards today!
At Canadian POS Corporation, we have a long history of proving that gift cards help Canadian business owners to make more money. Our electronic gift cards have consistently helped our clients to enjoy repeat business, attract new customers and boost sales.
Our electronic gift card 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, please don’t hesitate to call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.