Ever since the emergence of gift cards, they have always been so appealing to retail customers. In fact, gift cards are considered one of the most requested gifts for a lot of people regardless of age and sex. Those who wanted to give their loved ones a present on special occasions but were not sure about what to give would usually opt for a gift card as it gives a sense of security knowing the recipient can freely choose his or her own gift, technically. That being said, there is totally not a reason why retail store owners should think twice about grabbing such an opportunity to earn more in the industry.
Reasons Why You Should Consider to Sell Gift Cards
If you are a retail store owner and you want to earn, here are reasons why you should sell gift cards:
Reason #1: The potential growth in your revenue.
Gift cards offer a lot in terms of opportunities to enhance your sales. Compared to the strategy of giving discounts where a chunk of your potential earning can be taken away, with selling gift cards, either your customers underspend or overspend. The former means you get an extra earning from the unused card value while the latter means your customers will have to add some cash for the purchase. According to studies, a huge percentage of gift card holders usually end up spending two to three times more of the gift card’s value. Advantageous, right? And the likelihood of gift card recipients spending the exact value of the card is so low. In other words, by selling gift cards, you get to earn at least the full value of the card; not just its portion.
Also, if you come to think of it, every noncustomer gift card recipient is actually a potential lead that can most likely be converted into a future customer as he or she will most likely be forced to check all the items in your shop.
Reason #2: Enhanced brand awareness.
Let’s face it; we, retail customers, usually do not settle with tips and recommendations about a certain product. We count more on our personal experiences with it. But the thing is, this does not apply to gift cards. How? Basically, gift cards are handpicked by the giver and regardless of which item the recipient chooses, the revenue or the proceeds absolutely go to the shop that issued the card. Every gift card buyer is somehow a free potential brand ambassador. That’s an instant brand awareness scheme without having to spend anything.
Aside from displaying gift cards in their own stores, a lot of retail shop owners also partner with other businesses such as restaurants. This facilitates an enhanced market reach. Depending on the arrangement, however, this can be free or the other business might demand a percentage of the proceeds.
Reason #3: Enhanced customer loyalty.
Customer retention is as vital as gaining new ones. As a retail owner, you should also see to it that your personal brand relations with your old customers are well taken care of. Once your customers feel this strong connection, there will not be a reason why they won’t gift a gift card from your shop.
Another way you can increase customer loyalty through gift cards is by including the cards in your incentive programs. You can give them away for free; surely your happy customers or their chosen recipients will feel inclined to return to your shop to spend the card’s value.
Reason #4: Gift cards invite new clients to discover your business.
As per the business experts, one great way to gain new customers while retaining the old ones is by selling gift cards as they are considered to be a very effective advertising tool for retail stores. Of course, this means displaying them at different strategic locations such as at day spas or bookstores’ cashier area.
Reason #5: Gift cards are anti-fraud.
The proliferation of card-related transactions is alarming and this is what has been holding a few of the retail customers from buying gift cards. But the good news is, as long as you trust and invest in the right gift card manufacturers which use the best and most secure digital technologies, then there will not be a problem.
Digital gift cards are becoming more popular, allowing their owners to get a real-time view of their updated balance. This helps them act on time in the event of schemes or frauds. This doesnt mean zero fraud, just less fraud.
Reason #6: Gift cards are best-selling on holidays.
Christmas holidays are the time of the year where people rush to malls and shopping centers to buy presents for their friends and loved ones. That said, there is no better extra way to maximize your sales during the holidays than selling gift cards.
Gift cards are a popular gift choice among people who are fond of last-minute shopping or who want gifts that will not disappoint. Not selling them means you will be losing out on tremendous amounts of profits. It is the worst thing you will have not done as a retail business owner.
You may be worried: “What will happen to the unwanted gift cards? This might discourage customers from patronizing them. “
While as per studies, there are a few number of people who do not want to receive gift cards, this will less likely affect the gift card buyers and lovers because of the following reasons:
- Gift cards can be auctioned or traded with the help of websites that host online bartering.
- Owners or recipients can always re-gift the cards. There are gift card issuers who are not strict about the claiming process.
- Charities accept them.
- Owners or recipients can always sell gift cards for cash online. Of course, there will always be people who will be interested to buy cards at a cheaper price.
Selling gift cards are one of the best opportunities you can grab to make your business known and to expand your sales overall. With the advantages it comes with, it is always worth considering.