51735 Articles

Whether you’re a new business just opening or a growing business with a substantial bank of customers, you have one goal in common: you want more. More traffic. More loyal buyers. More revenues. And everyone through the door or on the phone has a plan to get you there. Confusing? Sure it is, but no one said your climb to the top would be easy.

One of those strategies you will need to make a choice on is gift cards. Are they for you? Can they really help your business? It may not appear to be an easy choice to make from the outside, but achieving “more” in your competitive market often requires you to explore effective ways to build your profits and increase customer loyalty.

You are probably familiar with some of the more common types of merchants that have been using gift card programs. The local restaurants, the beauty salon, the spa down the street … many of them have long ago shed the paper gift certificates for an improved gift card program. They understand the importance of introducing their business to new customers and pre-selling their services. However, what you might not realize is that gift card programs have integrated successfully to a wide range of non-standard merchants. Whether it’s the local grocer, the auto dealer or a pet sitter or groomer, the plastic gift card has become an indispensable source of business. To know whether a gift card is right for your company, let’s take a look at three reasons it may be a perfect fit.

Your Clients Demand Gift Cards

It’s been a criticism that gift cards aren’t a creative, unique gift … yet, the growth of gift cards has been phenomenal. Consider that they are among the top three most-often-requested gifts. What does that mean for your business? Consumers are demanding them at record numbers, and that’s where you want to be — servicing that demand. The reason for growth is varied: they are convenient to purchase, simple to transfer and easy to give; they are a great way for a friend to introduce another friend to a great product or service that they enjoy; and, with more and more businesses offering gift cards, the available selection has, indeed, become more creative.

Building Your Brand

A slick gift card design is like a miniature billboard. Your glossy image is not only attractive, but it promotes and reminds people of your business. The larger plastic gift card providers can offer you a range of customization options. From standard themes, created for quick shipment, to full-color options that use your company’s colors, logos and images, there is customization available for any size business. Combine this with a variety of in-store promotional materials like fully custom card carriers and hangers, eye-catching displays, posters and more. Now, you have a multi-faceted campaign to promote your gift card and drive highly profitable sales.

You Need the Revenue

I’m going to take a wild guess that you probably wouldn’t turn away more revenues, increased traffic, and additional loyal customers, right? A gift card program addresses all of these aspects of growing your business. A single gift card will represent at least two visits (maybe more) to your business — the first visit when a consumer purchases the card, the second visit when the card bearer returns to use the gift. Additionally, these card bearers also may be new to your business. A percentage of them will return to your business. And many will even tell their friends about your business. You’ve just leveraged an existing customer into creating new customers. And the purpose of all these consumers with gift cards is to buy something … and quite possibly something more expensive than they would have without the added benefit of the card.

Regardless of the type of program you offer, one key benefit applies to any gift card program. The day you begin to sell gift cards is the day you begin to gain additional revenues. Gift cards allow a customer to “pre-pay” you for products or services to be delivered later. That card may come back later today. It may come back next week or next month. Some will likely never come back. But you can count on that gift card purchase revenue sitting in your bank account. That’s revenue you can use to help run your business now while you wait for a new customer later. That’s a situation any business would envy, and a well-designed gift card program is a great way to get there.

Tags: Marketing