01, Jan 1970
4 Ways Gift Cards Can Boost Your Business ROI
The use of gift cards has been demonstrated to have a significant impact on marketing efforts, and it's easy to measure their effectiveness. This is because they have the potential to attract new customers by serving as a recommendation from the gift giver to the recipient.
Furthermore, gift cards are also popular with returning customers, indicating their ability to help foster strong relationships.
By implementing gift cards, businesses can easily increase sales, attract new customers, and reinforce existing relationships with their clientele.
Here are the different ways through which gift cards can impact your business:
The use of gift cards can serve as an effective strategy to promote your brand. Think of it as a form of advertisement that sits inside your customers' wallets, constantly reminding them of your business every time they use it to make a purchase.
Providing gift cards or certificates in sophisticated custom packaging can enhance the perceived value of your brand. It also creates the impression that the giver put extra effort and consideration into their gift.
Despite their small size, gift cards have a significant impact on branding, functioning as mini-billboards with the potential to greatly promote your business.
They Help Businesses Win Customers’ Trust
Using gift cards can enhance your brand's reputation by making it seem more credible. When your gift cards are showcased in stores alongside established brands, it gives the impression that your company is also a significant player in the industry.
This strategy can be particularly beneficial for smaller or lesser-known brands, as it helps to generate more attention and build trust with customers.
In situations where selling gift cards in physical stores isn't feasible, offering digital gift cards is another option.
Gift card stores are typically associated with high-end retailers, so having your brand included in their product catalog can make your company appear more reputable. This is likely because gift cards are readily available at all major retailers.
They Make Your Brand Appealing to Customers You Would Not Otherwise Attract
The use of gift cards provides an opportunity to incorporate additional benefits similar to those found in conventional marketing strategies, thereby enhancing the perception of customers receiving better value.
For instance, offering a free $20 gift card with the purchase of an item incurs the same cost to your business as a $20 online discount, yet the former may be more highly valued by purchasers.
Moreover, the convenience and flexibility of gift cards enable you to cater to customers regardless of their location or timeframe, as they are easily fulfilled and can be provided in either physical or digital format.
When customers repeatedly visit the same retailer, it indicates that the business is doing something right, which can attract potential customers and gain positive attention from the public.
Gift cards can be an effective method for fostering a dedicated clientele. Individuals who learn about a brand through a referral or receive a gift card from a friend tend to return as loyal patrons.
By sharing gift cards with loved ones, we express our confidence in a brand and encourage those close to us to support it as well. These miniature advertisements are carried in the wallets of our acquaintances, reinforcing brand recognition and fostering stronger loyalty.
How to Make the Most of Gift Cards
Now that the different impacts gift cards have on businesses have been explored, this section will shed light on how you can properly integrate them into your business model and make the most of them.
The ways you use gift cards will vary depending on the type of business you run, but the points below should help you get started and get more of your cards into people's hands.
Talk About Them (Both Online and Offline)
It would be unwise to overlook the potential advantages of gift cards for your business. You should aim to expose them to as many customers as possible, especially during the holiday season.
Instead of merely placing them near the cash register, try creating a comprehensive gift card display in a different section of your store. You can even pair them with other popular items to make seasonal gift boxes, which will add value and make them more attractive to shoppers.’
Many businesses produce gift cards with distinct themes or color schemes, tailored to appeal to specific groups. For example, Amazon offers dozens of themed gift cards. These variants can be showcased alongside relevant displays in stores.
Furthermore, it is wise to establish a dedicated gift card page on your website and keep it updated all year. Promote it via tweets and Facebook posts to let your followers know that they can buy gift cards from your website.
It's important to keep in mind that not all gift cards sold at your store will be bought by your loyal customers. Some may be purchased by individuals who are friends or family members of your regular shoppers.
Therefore, it's crucial to offer gift cards with varying monetary values that cater to different budgets. The denominations you offer will depend on the average cost of your products, but having a few lower-priced options will increase your chances of making sales to those who don't typically shop with you, but wish to gift a loved one.
Social media can be an effective tool for promoting gift cards during the holiday season. By reminding your followers on Facebook and Twitter that you sell gift cards, you can increase sales even if they don't immediately click on your links or visit your website.
To make the most of this opportunity, take photos of your seasonal gift cards and create visually appealing posts for Twitter, Facebook, and Instagram. Make sure to include key information about your store and the availability of your gift cards in the descriptions. Schedule these posts to go live during festive periods to maximize their impact.
Gift cards can be a great tool for boosting profits and promoting your business, regardless of whether you operate a serene coffee shop or a busy indoor trampoline park.
However, it's crucial to remember that gift cards can only increase a business's brand value if they are redeemed. Businesses that see gift cards as a simple means of generating more income without putting in the required effort will not thrive in the long run.
Talking of redeeming gift cards, people need to do their research so that they can choose a reliable platform where they can redeem their gift cards for cash.