In many of our past blogs, we have outlined the benefits of starting a gift card program at your place of business. There is tons of evidence to support the case that gift cards will increase your business by giving customers more incentive to shop there. On Plastic-Card-City.com, it states that “gift and loyalty cards can provide a powerful way for smaller companies to compete.”
However, “the fact is, what you get out of a gift and loyalty program will depend on the effort and commitment you invest.” In other words, it’s all about how you promote your gift card program. The site reminds business owners that some creative ideas will need to be implemented in order for your gift card program to be truly profitable. So what ideas can you implement?
Offering your customers savings whether they have gift cards are not is always a good way to draw in more customers. But as Plastic-Card-City.com points out, “studies have found that people will usually spend 30% more when using a gift card, which is known as ‘uplift’ in the industry.” Therefore, the more incentive you give your customers to buy, the more they will spend.
Consider that every time a $50 gift card is purchased in your store, you have likely secured yourself more than that $50 in sales. This is because of the basic psychological benefits behind gift cards. As the site informs us, many “people perceive the value on the card as ‘free money’ or ‘found money’. The psychological effect is similar to that of a credit card, only much, much stronger.”
The site goes on to provide a few examples: “Someone with a $50 restaurant card will usually indulge in a dinner for two, spending $120. Another shopper in a retail clothing store with $15 left on his or her card will splurge on an item that is $15 more than they would otherwise be willing to spend. A person who has a FREE $5 gift card is more likely to visit that retailer instead of another store.”
Back to those strategies that you can use to help promote your gift card promotion, Plastic-Card-City.com suggests that you add the gift cards to flyers that you mail out that are used to promote the business. Start with small denominations simply to encourage people to come into your store and spend. You should also be sure to instruct your sales people to offer the cards to regular customers of your store.
Be sure to promote your gift cards on your printed marketing material, the site suggests. This can include window signs, menus, flyers and other ads. You may also use gift cards as charitable donations. Remember that with each gift card that is either given away or sold, another customer is bound to visit your place of business. Keep in mind that it’s all about being creative.
The site also suggests that you come up with a way to “cycle” the gift cards you sell. That means, figuring out a way to keep a balance on the customers’ cards so that they keep coming back into your store to spend. If you’re looking to increase your sales – and who isn’t? – it’s time to start a gift card program at your store. Call Canadian POS Corporation at 1-877-748-2884 to get set up with your gift cards today!