Business owners are always looking for new ways to increase revenue. Sometimes you need to be bold, creative, and put in plenty of extra hours to bring a massive project to fruition, but sometimes the change is so incredibly simple and small you’ll wonder why you never tried it before. And that’s the case with gift cards.
You may have never considered creating gift cards for your business because you thought only the national chains had the size to warrant it, or the initial cost turned you off, but it is by far one of the easiest ways to increase revenue, no matter your size.
Why add gift cards?
Gift cards have grown consistently in popularity year over year, and they have been the most requested holiday gift for the past decade. They are more personal than cash, but far safer for your business than paper gift certificates, which are notoriously easy to duplicate or alter. Encouraging cards as a prime gift-giving method also eases the post-holiday return surge that can unexpectedly hurt the bottom line for many retail businesses. You’ll experience increased foot traffic from customers who might not have otherwise visited your business, and as opposed to the average first-time visitor, you are essentially guaranteed a sale as a result.
In fact, you aren’t just securing a sale, but studies have shown that the majority of recipients will spend more than the value of the card, averaging 30-40% beyond its initial worth.
What kind of card?
While every business should have a basic gift card with their branding on it, you should also consider mixing in more personalized or holiday-specific cards to add to the gift-giving appeal.
Beyond the everyday gift cards are promotional cards, which are used in instances like receiving a second, smaller denomination card for “free” as a perk for buying one in a larger amount as a gift. This will likely bring both the recipient and buyer back, instead of just the giftee, and will further cement loyalty from your original customer.
Or you can incentivize increased in-store sales by offering a card to be used at a later date once the customer spends a certain dollar amount. If you use promotional gift cards like these, consider limiting their viability to a seasonally slow period like the post-holiday slump. This time of year affects both restaurants and retail, so it is likely the ideal time to run this sort of promotion.
How to get started?
First, though the holidays are the most popular times to sell them, there is no bad time to incorporate gift cards into your offerings. Advertise them year-round and have them clearly visible and accessible at every cash wrap or POS system. Drive gift card sales by promoting them on social media, make purchasing from your website simple, and consider occasional contests and giveaways to increase your brand visibility while also subtly advertising that they are part of your product line.
If you’ve never used gift cards as part of your business, then it’s time to dive in. Talk to us about updating your software and ordering the kinds of cards that will best support your business strategy. Now, if only every change to boost your profit margins could be this effortless!
If you’re ready to start increasing your revenue with gift cards, contact us today, and we’ll find the unique solution for your unique business.