If you own a small business, and you're not utilizing a gift card program, you might be missing out on a major source of income. A study conducted in 2015 found that roughly 50% of all US adults had used at least one gift card the previous year. If you're still not sold on the idea of gift cards, here are four reasons why you should be.
Simple Way to Thank Loyal Customers
Your small business wouldn't be thriving without your loyal customers. Gift cards a simple way to thank them for their loyalty. Your customers will feel appreciated when you hand them a gift card that they've earned through their commitment to your establishment. They'll repay that gift by using it on additional merchandise from your store. Not only that, but they'll continue shopping at your store because they know that they're appreciated as a customer.
Promotes Interaction Between Nearby Businesses
Networking with nearby businesses is a great way to increase your market – especially if you all share the same retail space. Introduce yourself to the neighboring businesses and let them know that you now offer gift cards. During the holidays, when many small business owners give tokens of their appreciation to their employees, see if other business would like to purchase your gift cards for their employees. You could also arrange to exchange gift cards, so your employees can visit nearby establishments, and their employees can visit yours.
Great Way to Bring in New Customers
In addition to keeping your loyal customers happy, you also want to bring in new customers. One way to do that is to offer a gift card with each purchase made by a new customer. You'll attract new customers by providing them with an incentive. In return, those new customers will become loyal customers who will purchase gift cards for their friends and family.
Increase Your Sales
When people use gift cards, they usually spend more than the actual value of the card. In fact, statistics show that about 61% of all gift card recipients spend more than the actual amount on the card. Of that 61%, 75% spend about 60% above the actual value. That's a dramatic increase to your sales just by introducing gift cards.
If you've been trying to find new ways to increase your sales and improve your business, you should introduce gift cards. The information provided here shows how gift cards can benefit your business. They're a simple way to bring in new customers and thank your existing ones.