4 reasons why small businesses should have a gift card program
TRANSCRIPT
4Reasons why small BUSINESSES
GIFT CARDSHOULD HAVE A
PROGRAM
Gift cards accounted for more than $129 billion in consumer spending in 2015.
With spending on gift cards expected to reach $160 billion by 2018, small
businesses have the opportunity to cash in on profitable trend while aligning themselves to gifting occasions and
competing with national brands.
Small businesses also have an added advantage selling gift cards in that they can
be more personal than big box brands –giving a pre-paid card to a business that is unique and local shows the recipient that
the giver put some thought into the purchase. But the benefits don’t end there.
Keep swiping to learn four reasons why you should get on board the gift card train.
INCREASE1. AVERAGE TRANSACTIONS
The majority of gift card holders spend
nearly 40% more than the face value of the gift
card they receive. Essentially, when a customer uses a gift card at your store, it
typically leads to higher sales.
2 GUARANTEED. REVENUE
Unlike physical items that customers may purchase as gifts, gift cards cannot be
exchanged or returned, which means that those dollars will stay in your bank account. And when shoppers don’t spend their gift
cards, that also adds to your revenue. This is called “breakage” and in 2015, $973 million
in gift cards went unused. For small business owners, these qualities are an effective strategy for maximizing profitability and
reducing the possibility of lost sales.
3 BRING IN . NEW CUSTOMERS
At a very basic level, a gift card program has the
potential to bring in at least two customers to your store – the giver and the receiver,
either of which may have never thought to shop at
your business until they went to buy or spend the gift card. Studies show that 11% of gift card recipients receive gift cards for businesses they rarely or never visit. And
another 33% changed their purchasing behavior to
redeem the card.
4 ALIGN YOUR BRAND. WITH GIFTING OCCASIONS
The most popular time of year to buy gift cards is
during the holiday season (shocker). But people also
purchase gift cards for other special occasions such as
birthdays, weddings, showers and to show
appreciation for friends and colleagues. When you offer gift cards that match these occasions, people will start
to think of your business when they’re looking to buy
a gift.
If you’re just starting to offer gift cards, keep in mind that most customers won’t
immediately think of your business a place to buy them. But this can be quickly fixed by
communicating that information to shoppers. Marketing your gift card program can be as easy as putting up signage in your store, printing a message at the bottom of
your receipts or posting a reminder to social media.
If you don’t currently have the capability to offer your customers gift cards, visit www.emgway.com for
information on how you can get a gift card program started with EMG.