Attract new customers
Gift cards are widely used as gifts, hence the name given to them. Whoever receives a gift card from your business is a potential customer who will probably visit your store to “spend” her gift. If the experience is pleasant, you will surely have won a new client. Buy your favourite gift cards through online shopping in Pakistan.
Looks like real money
A gift card is perceived by customers as equivalent to real money that can be spent immediately. More than half of consumers will visit your location multiple times to spend their gift, giving you cross-upsell and cross-offer opportunities.
Offer earnings in advance
A gift card system guarantees you money in advance for any product or service. And as the saying goes: “a bird in the hand is better than a hundred in flight”.
If you have a large sum of money sold in gift cards, it can be used for anything you need. Whether it’s to reinvest in your business or pay your payroll, it’s money that’s already in your pocket. At some point you will have to deliver that amount in products or services, but this could be in a week, a month or a year. In some cases, you may not even have to deliver anything.
Produces the breakage effect
Breakage refers to any type of paid service that is ultimately not enjoyed by the customer. In this case we refer to the amount remaining on the card that is not claimed.
A person can receive a gift card for $10, exchange it for a $9 item, and throw the card in the trash. In this case, as a retailer you have delivered $9 in products and received $10 in profit.
Other times someone receives a gift card for a service or item that she doesn’t need, so the card will never be used.
Generate higher profits
Two out of three customers spend almost 40% more than the value of the gift card. Your customers will probably buy higher value products than what their gift card says. In this sense they are much better than coupons and other types of discounts.
Strengthen your brand image
Gift cards are a good investment to advertise your company. They are a mini billboard in your customers’ wallet, inviting them to spend at your business. They highlight your brand in a greater number of potential clients and help to have greater visibility such as see example starbucks Pakistan. They also generate more sales at a lower cost than traditional advertising.
Avoid fraudulent returns
If you offer gift cards as payment for returned products, you ensure that the money is used again in your store. This reduces fraudulent returns.
Open other avenues of promotion
You can use a gift card system as part of your promotional strategy. You can make different offers to maintain a balance on the card, for top-ups per month, etc.
Also take advantage of this opportunity to promote your store to the inhabitants of the area, giving low denomination gift cards to real estate brokers, charitable organizations, banking agencies and tourist agencies. It is an investment that will be rewarded in the medium term with the arrival of new customers.
Implementation of a Gift Card system
You can adopt the system of gift cards or physical gift cards and also implement the digital modality. Using technology can expand the number of customers you reach, and enabling more ways to use it leads to higher sales.
An advantage of using technological applications for gift cards is that they can be distributed through social networks or email.
There are many companies that are dedicated to adapting this type of system to your business. They offer different types of approach to gift cards. From the printing and delivery of physical cards with your company logo, to the implementation of an internal virtual shopping store in your company for corporate gifts, fully managed by you.
We hope that this information has been useful to broaden your knowledge about gift cards. If this tool seems ideal for your business, don’t wait any longer and seek advice to implement it.