How to Use Gift Cards to Grow Your Retail Business

grow your retail business

While giving gift cards is not a new idea for retailers, it’s an increasingly essential tool to use to develop your retail business. Gift cards are broadly given and appreciated; 74% of consumers say they like receiving gift cards as a holiday gift, according to a 2017 holiday shopping survey by Socratic Technologies and Vantiv. Holiday consumers also planned to buy an average of 4 last year, according to the National Retail Federation.

Whether you already have a gift card program or are thinking about including the choice, here are seven methods they can grow your retail business and your followers.

7 Methods to Use Gift Cards to Grow Your Retail Sales

1. They Increase Your Revenue

Gift cards increase retail revenue | Shopify Retail blog

Picture: First Data

Gift card sales bring in cash once they’re bought, however, they also provide a chance for additional revenue once they’re redeemed. The average card user will spend an additional $38 on top of the card’s pre-loaded amount, according to a survey by First Data.

Buyers with gift cards are also more likely to buy a few of your higher-priced items since they see the gift card as being “free money” to spend. And right here’s another fun income fact: 72% of people that go to a store to buy a gift card for someone else end up spending money on the on themselves, according to Retail Touchpoints.

2. They Introduce You to New Customers

Gift cards bring in new customers | Shopify Retail blog

Picture: First Data

Gift cards can expose your enterprise to people who could not have otherwise shopped in your store. Clients who already know and love your enterprise will buy gift cards for friends, helping to grow your retail business.

You may also give gift cards once you’re asked to make a donation to a local fundraising event. By offering a gift card in lieu of a product or service, you open the door for the recipient to use their prize and maybe spend more money in the process. Offering gift cards to fundraisers additionally boosts your brand recognition as well as creates a reputation of being an enterprise owner who helps their community.

3. They Drive People To Your Website

Digital gift cards are becoming more popular, with an estimated worth of $15 billion according to Gift Card Granny. The giver can conveniently buy a gift card via your website, saving a trip to the store — perfect for last-minute gift purchases. The card is sent via email to the recipient, eliminating the need for paper or plastic gift cards or certificates.

Almost 40% of customers prefer digital gift cards which are scanned from their phone over a physical card, according to research by Gift Card Granny.

4. They Encourage Loyalty and Repeat Visits

Several merchants provide gift card promotions, particularly around the holidays, and they could be a nice method to enhance loyalty with your current customers to grow your retail business. For instance, provide a free $10 gift card to clients who buy $100 in gift cards.

This kind of provide might encourage a purchaser to spend more cash, driving up the average amount of your gift card sale. You may make the bonus gift cards valid after the holidays and for a short time period, boosting slower sales during the first quarter of a new year.

5. They Increase After-Holiday Sales

Retailers love the spike in sales that occur during the fourth quarter, however that may make January and February feel slow. Gift cards, nevertheless, usually bring recipients via your doors during the lull as they spend their present after the holiday rush. That may help enhance your first-quarter income.

6. They Help You Compete with Major Retailers

Giving a gift card can feel impersonal, however, when it’s from a giver’s favorite retailer, it looks like more thought went into the choice. Which means smaller retailers that provide gift cards can compete with or even beat out big stores.

Make sure to let your current buyer base know that you provide gift cards so you’re top of mind once they’re out there for a particular gift. Show your gift cards near the cash register. Use signage around the store that promotes your gift card choices to shoppers as they browse. And include gift card gives in your email marketing and social media campaigns to grow your retail business.

7. They Can Be Used to Manage Returns, Rebates, and Rewards

Gift cards as store credit | Shopify Retail blog

Picture: First Data

If a buyer needs to return an merchandise to your store, however, doesn’t have a receipt, providing a gift card is a good way to maintain their dollars in your enterprise. This may also be a choice if a buyer desires to return an merchandise after your regular grace period. By offering the customer with a choice, you’re more likely to maintain them satisfied and coming back to spend the amount later.

Retailers may also use gift cards as a reward for employees and clients to grow your retail business. Provide your greatest salesperson a gift card as a reward for their hard work, or give your VIP clients a gift card as a thank you. You may also incorporate gift cards into your loyalty program as a reward for multiple purchases with your brand.

Getting Your Own Gift Cards

To move forward with utilizing gift cards to grow your retail business, you’ll want to acquire the cards you need to use and create a strategy that makes sense for your unique retail enterprise.

You may promote branded plastic, digital, or paper versions of gift cards in your store — and several services make it simple. The quickest place to look is with your current credit card processor; many provide a gift card program that integrates with your present point-of-sale equipment. For instance, Shopify POS permits merchants to create digital or paper gift cards and email them to customers or print them on the spot. You may also use a tool like Giftly, which is a software program that permits you to create, promote, and market digital cards.

If you wish to promote physical gift cards, one choice is Duracard, an organization that creates custom plastic gift cards that embody a magnetic stripe or barcode used to load a dollar worth. Duracard has designers that may create a card style for the merchant, or you may add your own art.

Another provider is Roller, an app that permits you to promote and redeem digital and physical gift cards directly from your website. Roller provides fun gift card choices that clients can personalize with images or even videos which are sent electronically to the recipient.

Moving Forward With Gift Cards

Now that you understand how essential gift card sales could be to your enterprise, it’s time to add them to your inventory. Almost 93% of American customers have given or received a gift card, according to Gift Card Granny. Promoting gift cards is a simple method to meet your consumers’ demands and offer them full service. Not only are they a popular sale; but they’re also the gift that keeps on giving for retailers.

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