How gift cards can help your small business grow
As the Los Angeles Times recently put it, gift cards aren’t just for the big boys anymore. Small businesses are starting to reap the benefits as well.
However, according to the Times article, only about 8 to 10% of small and mid-size merchants use or have used them.
For the 90% of small businesses who haven’t gone this route, here’s three simple reasons why implementing a gift card program can help your business grow.
It Increases Spending
According to industry research, consumers are likely to spend more than the initial value of the gift card they received, and a majority of merchants who implement gift card programs report an increase in their sales.
To top that off, gift card users are more likely to buy full-priced items over sale items, and are less likely to bring items back for exchanges or refunds.
It Builds Brand Recognition
The benefits here are twofold.
First, someone has vouched for your business by giving your gift card to someone else—probably to a friend or family member. We all understand the power word-of-mouth can be to creating trust and awareness, and a branded gift card does this overtly and in a very tangible way.
Just as importantly, a gift card serves as a reminder, like an advertisement that burns inside a wallet or purse. Depending on the value of the card, an individual may keep it with them for days or weeks at a time. Think about the last time you needed something that you already had a gift card for—whether it’s dinner or for a free oil change. It’s a win for both you and your customers.
It Generates Repeat Business
Your gift cards users are not only more likely to spend more money at your establishment, but they’re also more likely to visit your business on more than one occasion.
Who wouldn’t want to increase repeat business?
Here’s a bonus reason—they’re cost effective
Sure, the above reasons sound great, but what will it cost you, right? Believe it or not, gift cards are incredibly affordable, which is why they’re becoming increasingly popular among small business owners.
And even better—we can help you. If you’re a US-based business, and you’re interested in learning more, shoot us an email at email@example.com (and be sure to ask us how you get can get your first 100 gift cards free).