Gift cards are one of the best ways for your business to make money. Aside from being something everyone buys, 60% of people want them. How’s that for a fact? They’re also a great way to bring in revenue.
Still asking questions? Let’s explore 4 reasons you need gift cards in your business!
1. Gift Cards generate new business
Chance are the person who receives your gift card, isn’t a client and hasn’t ever been to your business. Gift cards are your time to shine! How does it feel knowing most of the gift cards that go out the door are going to bring in new customers? You probably feel pretty great right now!
Why is this so important? Because you know that the most expensive part of being a business owner is acquiring new customers. It’s expensive to get someone in the door for the first time, so get yourself some gift cards!
2. Gift Cards help you keep the old business
While it’s great gift cards can help you bring new clients in the door, we have to talk about your existing clientele. They have already come through your door after all!
Gift cards can help keep your current clients loyal when combined with promotions. Have I lost you yet? Let’s explore! If you offer a $120 gift card for $100, yes, you may think you’re giving away $20, but keep reading.
If a client has $20 they can use in your store, they’re likely coming back to use it. It’s a simple way to get them back through your door! And statistics from GiftCards.com show that the majority of people spend more than the value of their card. So you giving them $20 to come through your door means they will spend more than $20 when they do come back! Are they worth it yet?
3. Gift Cards & Grumpy Customers
If you own a business, you get complaints. While some may be complaining to complain, others may have very valid complaints. Maybe their stylist didn’t do a very good job, or you have someone new working. Either way, you don’t want to lose a repeat customer due to something that’s easy to fix.
Why not offer them a free gift card? It’s easy to address their concerns and validate their feelings with a: “We know you weren’t happy, so here’s $50 you can use the next time you come in, on us.” Who wouldn’t be smiling after that?
It’s customer service like this that creates repeat customers.
4. Gift Cards & Revenue
Let’s talk a little about revenue. When someone buys a gift card they’re handing you cash for a product they haven’t bought yet. It’s a 100% down payment on an item they’ll pick up later.
But what does that mean for you? If someone buys a $100 gift card you suddenly have extra cash to buy supplies or inventory. You can sell that inventory now, and make money on it.
Here’s another fine fact from GiftCards.com: in 2015, almost $1 Billion in gift cards went unused. Did someone say extra money?
There are pros and cons to that situation; you got paid without having to work, but you didn’t get the opportunity to prove to another client you’re awesome and they should keep coming back.
Gift cards aren’t just a gift for the person buying and receiving it, but a gift to your business, too! They bring in money, they give you revenue up front, and they add credibility to your business.
It’s time to get rolling, and get yourself in the marketplace with some gift cards. Keep your eyes peeled for more blogs on how to design and market gift cards!