Gift cards have become more than just a popular gift option; they're now a strategic tool for businesses of all sizes and industries. Offering gift cards can unlock a range of benefits that not only enhance your brand's image but also boost your bottom line. Here are the compelling reasons why brands should offer gift cards and how they can contribute to your business's success.
1. Expanding your customer base with gift cards
Gift cards are a gateway to new customers. When recipients redeem their cards, they may visit your store or website for the first time. This initial exposure can lead to repeat business and potentially lifelong customers. In essence, gift cards provide a low-risk way for people to try your products or services.
2. Building customer loyalty with gift cards
Gift cards can foster customer loyalty. When recipients have a positive experience redeeming their gift card, they are more likely to return as paying customers. Additionally, the act of giving a gift card can strengthen the bond between the giver and the recipient, indirectly promoting your brand through word-of-mouth and referrals.
Note: one caveat to achieving reason numbers 1 and 2, is a positive customer experience when buying and spending using a gift card. Look for a solution like Wrapped to ensure customers are delighted:
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3. Increase revenue with gift cards
Gift cards are a cash flow catalyst. When customers purchase gift cards, they essentially provide you with the cash now. Even if some gift cards are never redeemed, the immediate cash influx can be reinvested into your business. Moreover, research shows that people tend to spend more than the card's value when using gift cards, further increasing your sales.
4. Boost brand visibility with gift cards
Every time someone receives or purchases a gift card from your brand, it serves as a miniature advertisement. The card carries your logo, branding, and often an enticing design. As it changes hands, it exposes new potential customers to your brand. This passive form of advertising can be particularly effective in expanding brand recognition.
5. Win last-minute shoppers with gift cards
Gift cards are a lifesaver for procrastinators. Offering them, especially during busy holiday seasons, can attract shoppers who are short on time and ideas. The convenience of gift cards can help capture sales that might otherwise be lost to competitors.
6. Reduce returns and exchanges with gift cards
Gift cards empower recipients to choose what they want, reducing the likelihood of returns and exchanges. This streamlines your customer service process and minimizes the associated costs.
Gift cards can also be used in place of refunds for customers who want to return a product, keeping the revenue in the bank. Wrapped makes it easy to offer gift cards for returns.
7. Gather customer data with gift cards
When customers purchase and redeem gift cards, you can collect valuable data, including contact information that can then be used to send them marketing campaigns to get them shopping again.
In today's competitive marketplace, offering gift cards is not just a nice-to-have; it's a savvy business move. They're versatile tools that expand your customer base, increase revenue, boost brand visibility, and foster loyalty. By embracing gift cards, you'll not only enhance the shopping experience for your customers but also strengthen your brand's position in the market. So, whether you're a small boutique or a large corporation, it's time to consider the benefits of offering gift cards and how they can be a powerful asset in your business strategy.