Receiving gifts when celebrating a special occasion always provides a wonderful feeling. However, receiving the perfect gift – one you definitely know that you want – is even better. And that’s what gift cards are able to do!
Gift cards are widely popular all year round. And if you’re of the mind that they’re only bound to get even more popular when this year’s holiday season rolls around – you’d be right!
Gift cards have long been perfect go-to items for gift-givers because they allow the gift-receivers to buy whatever they like. Gone are the days when we had to worry about getting the right colour, the right size or the right style. Now, people only need worry about buying gift cards from the right store!
So, Are you selling gift cards in your store?
I’m sure you have received and/or given at least one or two gift cards this year so if you don’t already have an active gift card program at your business, it may be time to reconsider.
If you are still not selling gift cards, you’re missing out on a pretty big revenue stream. In fact, GiftCards.com, notes that over $100 billion is spent on gift cards every year. You’d be hard pressed to find someone who has either never purchased or never received a gift card before. The website points out that 93 percent of consumers in the United States either purchase or receive a gift card annually. There are tons of hidden benefits buried under the possibility of selling gift cards at your business – some more obvious than others.
In what other ways will selling gift cards boost your business?
There’s a reason that the retail and internet giants like Amazon, Target and Macy’s use them and here is the 5 reasons you should be using them too.
They often lead to larger purchases
By selling gift cards, you don’t just increase sales, but you earn more money per sale. And that’s because, statistically, gift card recipients end up spending more money than the face value of their cards. According to GiftCards.com, 72% of customers will spend more than the value of their cards. In fact, on average, they spend 20 percent more!
They grow your customer base.
The more you sell, the more “recommendations” you know are out there. Selling gift cards in your store is a surefire way to get more customers coming through its doors. Remember, as well, that each time a person uses a gift card in your store, it provides you with an opportunity to spark a new customer relationship that can last a long time.
A gift card sale is a cash advance.
When you sell a gift card, you take in revenue with next to zero cost of goods sold (COGS). You don’t realize the costs until your customer returns to redeem the card, which may be months later.
Creative Marketing Possibilities
Implementing a gift card program at your business is like finding the key that unlocks the next level of your favorite video game. A whole new world emerges. You can offer gift cards as giveaways, prizes, or thank you gifts to your friends, family and customers.