Gift cards are a great success, especially for special occasions, because they facilitate gifts and consumers love them. But the value of gift cards is not limited to their popularity as gifts. They also function as a promotional item to profitably boost your sales through keeping your customers intact to your business, which is a great advantage if you’re planning to stay ahead in boosting your sales.
There are many ways to get your customers’ attention. You can use direct mail, advertising or coupons. However, these things do not motivate a customer to make a purchase or use their services. If you use gift cards as part of your marketing strategy, they can become a great way to attract your customers and get them back.
Also, offering gift cards to customers as part of marketing promotions is also an effective way to increase sales, increase profits, create competitive advantage and encourage repeat business.
Here are some ways that a Gift Card can help increase or boost your sales:
A Gift Card can be of a Greater Perceived Value
Gift cards, unlike coupons, give consumers the perception of having money to spend. More than half of consumers who use gift cards will have to return more than once to run out of their cards. This will give you additional sales opportunities to boost up your business.
It Doesn’t Cut into Your Profits
If you offer your loyal customers a prepaid gift card, instead of a discount or coupon, you can quickly recover your investment. About 2 out of 3 gift card holders spend almost 40% more on the value of the gift card.
It Creates a Revenue for Advanced Sales
A gift card is paid for the product or service that is provided. You have the money until the consumer redeems the card. There are not many marketing strategies that can improve a company’s cash flow, as well as a gift card program.
It Builds Brand Awareness
A gift card is a profitable advertising tool. You can give your business a first-class presence. A gift card is a billboard the size of a wall. Your client will remember your business and will be forced to visit your store. In addition, they cost much less than a full-size billboard.
It’s more Convenient
A gift card is easier to use than any other type of promotional tool, including paper gift certificates. Retailers who move from paper gift certificates to plastic gift cards can get a 50-100 percent increase in sales of their gift offers. In addition, a gift card program like Vantiv allows a merchant to offer their own gift certificates online and customers can design and customize the gift card with their own images.
It Offers Additional Promotional Opportunities
With some gift card programs, such as the StoreCard program from Vantiv, a number of promotional features are provided to a company, including converting plastic cards to mobile devices, sharing social networks, cash prizes, and more. They can also create promotional announcements that include integrated gift cards. These email programs offer instant savings that can force a recipient to visit your business and make a purchase.
Gift Cards Offer Greater Distribution
A gift card has more promotional power than many other marketing strategies. Techniques like advertisements have a limited duration. Gift card programs, such as Vantiv, offer the distribution of gift cards in shopping centres, where their personalized gift card will be placed next to well-known brands in major stores, pharmacies and supermarkets.
Gift card malls are available online and in the store and can highlight your brand, offering exposure to more potential customers, which helps increase sales and visibility of your brand. If you use gift cards as a marketing tool, you should work with an experienced partner who is able to adopt an advisory approach. They can help you create and run a gift card program that fits your specific goals, needs, and customers.
Padding your Bottom line
Gift card holders tend to spend more than the value of the card and buy items at full price, which means more profits for you. Another important point to consider when deciding whether to offer gift cards as a reward is that between 10% and 15% of gift cards are never redeemed. This means that some of your customers who receive gift certificates will never use them.
Gift Cards Can Help You Gain New Customers
Distributing gift cards during marketing promotions is also a great way to win new customers. These days, people seek the benefits available to them when they go shopping.
If you offer people a free gift card in exchange for your business, they’re more likely to become your customers. Offering free gift cards will also help your company stand out and capture the attention of customers who would otherwise go with one of its competitors.
Gift cards can also help you attract new businesses because the people who receive them can give them to their friends or loved ones as gifts instead of exchanging them. As a result, giving away gift cards could help you attract new customers.
Marketing promotions that offer free gift cards attract consumers because consumers can use gift cards to get the products they want. Gift cards are also a popular reward because they are flexible. Customers can redeem their gift cards at any time and at any participating store.
Can Help You Obtain Important Sales Data
Gift cards allow merchants to electronically monitor consumer behaviour. For example, retailers can track the balance of gift cards and the frequency with which customers use them. Other types of gifts and prizes do not offer merchants information about their customers’ buying habits. You can even track the customers who received your gift cards during previous marketing promotions and remind them that you are launching a new promotion. This will help increase sales.
Although gift cards are an effective gift for marketing promotions, launching successful gift card programs takes a lot of time and effort. The wealth of customer data provided by gift cards is certainly valuable, but it will take time to sort through it all.