What are Gift Cards?
Gift cards are a form of prepaid debit cards loaded with a certain amount of money that may be used by the recipient of the cards to make future purchases from your business. These days, people often find it confusing to pick the right gift for their loved ones and choose gift cards as a great alternative.
Gift cards can be useful for your business in various ways and some of them you can learn with the help of PrizeHog, such as increasing your revenue and building new connections. Continue reading this article to find out five beneficial aspects of gift cards.
1. Enhances Customer Engagement and Traffic
Gift cards play an essential role in gaining new customers for your business, which may lead to the formation of long-term loyal connections and pave the way for great marketing and engagement opportunities. The gift-givers act as metaphorical ambassadors of your business. As a result, the gift recipients are very likely to view you as a trusted entity and engage with your business while feeling uplifted.
2. Increases Revenue
Building gift card programs for your business will help gain additional revenues before providing actual services/products. Once your gift card is purchased, you will make an instant revenue way before your card is redeemed. The recipients of gift cards often view them as a form of free money or concession and will most likely be keen on spending more than the value of the gift card. According to Shopkeep statistics, 72 percent of customers who redeem gift cards spend more than the card’s value. This will give you a chance to introduce them to the other products and services provided by you and also increase your sales and revenue.
3. Garners Valuable Data
Gift cards will help you monitor the purchasing behavior of your potential customers or gift recipients. For example, suppose you will require your gift recipients to
register on your online portal prior to availing themselves of your gift card. In that case, you can track their interests, ask for feedback, and assist them with their purchases and navigation on your online portal. You will be able to use these analytics to develop new marketing strategies to enhance your sales and maintain healthy relationships with your customers.
4. Boosts Holiday Sales
Gift cards act as great sales and revenue boosters, especially during holiday seasons and also during the following months. Many people will use your gift vouchers as holiday presents. Many recipients of your gift cards will be visiting your local or online stores to view your products or avail of your services right after the holiday season, which will improve your sales and revenue during that period.
5. Helps Avoid Fraudulent Activities
Many customers refrain from trusting new retail businesses or service providers because of the increasing numbers of fraudulent activities such as credit card theft, data breaches, and identity fraud. Make sure that you use modern techniques for creating gift card programs for your business. For example, online or electronic gift cards reduce the risk of fraud and misuse via cashback schemes. Gift cards offer a sense of security to the recipients and also protect your business from potential risks of any future mishaps.
If you do decide to incorporate gift card programs in your business, make sure that they are readily accessible to your existing customers and clients. For example, if you are a retail business owner, you should place your gift cards in a highly visible place at your store, such as the cash register desk. If your gift card scheme is an electronic one, then display the vouchers in a separate section on your online website so that it will be convenient for the visitors to avail of this opportunity.
