Gift cards are a classic. They’re convenient, easy, and extremely popular. In fact, they’re actually the most popular gift across every single income level in the United States (according to Statista).
With the holidays approaching, there’s no better time for your business to start pushing gift card sales. Here’s five reasons why gift cards can help your business.
Guaranteed transaction. The purchase of a gift card is guaranteed revenue. Whether the recipient winds up spending the full value of the card (and then some), or forgets about the card entirely, the money is already out there. Regardless of what happens, it’s pretty much risk free.
Gift card recipients spend more. Did you know, according to BigCommerce, that customers spend an average of 38% more than the value on their card? When people receive gift cards, it’s common for their first instinct to be to splurge on something a little more expensive that they’ve been eyeing.
Easy sales during holidays. With gift cards being the most popular gifts around, it makes perfect sense to stock up for the holidays (and not just the winter holidays – don’t forget about Father’s Day, Mother’s Day, Easter, and beyond). In a 2016 survey conducted by Blackhawk Network, it was projected that 80% of consumers planned to purchase at least a single gift card for the holiday season. Perhaps even more revealing, 81% estimated that gift cards could end up composing half of their total gifts.
Want to help drive gift card sales for these occasions? Try producing themed gift cards. A holiday-themed gift card featuring snowflakes or Christmas trees may make all the difference.
Expand your customer base. Gift cards aren’t always given to those who frequent a specific business. They’re given because a friend or family member has considered that the person in question will find something of value at the gift card’s business. To that extent, gift cards can be an easy way to attract new customers. They’re an excuse to visit a business they might not have been to before. And not just to look around. To spend money.
Like I mentioned, most people tend to spend more than the value of their gift card. But in cases where they don’t? There’s actually a hidden benefit there as well. If customers don’t spend the full value of the card in one go, they’ll feel compelled to come back and spend the rest at a later date. Those multiple visits are incredibly valuable toward turning first-time customers into long term, repeat customers.
They’re great loyalty program rewards. Having trouble stocking up your loyalty program with rewards your members actually care about? The solution is a lot simpler than you might think. When it comes down to it, most customers ultimately join loyalty programs because they want to save money. Gift card rewards are a direct way to fulfill that desire.
Promote With CoGoBuzz
Want to sell more gift cards? With CoGoBuzz, our state-of-the-art digital marketing service, we’ll help promote your business’s offerings at the digital level.
Leveraging state-of-the-art WiFi, SMS, and Email solutions, our service promotes your business both in-store and out directly to your customers’ mobile devices. Through a one-time login to your in-store HotSpot, CoGoBuzz displays an interactive landing page on customer mobile devices, and automatically develops full customer profiles. On top of that, our service comes packed with a fully digital text-based loyalty program. Let your loyalty members know that you’ve added gift cards as a reward. All with a simple text!
Has your business has success selling gift cards? Let us know in the comments!