There are a lot of benefits to businesses that accept credit cards and give out gift cards to customers. Those who accept gift cards encourage people to make additional purchases at their establishment. Gift cards with matching company logos are like marketing tools in the customer’s pocket. Gift cards are often given to customers on special occasions, such as holidays. Moreover, they increase customer loyalty and brand awareness. And, most importantly, they increase revenue.
Selling gift cards can increase cash flow for any business. In contrast to traditional marketing strategies, which take time to gain traction, gift cards can be sold immediately. In addition to increasing sales, gift cards also act as a great incentive to encourage repeat business. Here are three benefits of selling gift cards. First, they can boost brand recognition. Second, they help you reach a wider audience. Third, gift cards encourage repeat customers to purchase your products and services.
Increases post-holiday sales
An increase in gift card use by holiday shoppers is expected to boost retail sales in 2022, according to new research. According to Blackhawk Network, the global branded payments company, two-thirds of surveyed consumers will use their gift cards within one month of receiving them, and more than half (54 percent) will spend more than the card’s value. This “payment shift” means that consumers are less likely to pay credit card fees on gift card purchases.
Increases customer loyalty
Giving away a gift card to a customer can help you build loyalty. By extending discounts and instant rewards at the point of sale, customers are more likely to return. Additionally, gift cards can be converted into rewards cards that allow customers to redeem them for future purchases. Such a system not only makes customers feel appreciated, but it also provides valuable insight into their purchasing habits. By offering personalized and timely gifts, your business can increase its sales and reduce costs by targeting marketing campaigns accordingly.
Increases brand awareness
Giving gift cards to your customers is a great way to increase brand awareness and increase consumer loyalty. Gift cards can be used in many ways: for last-minute gifts, online marketplaces, and even apps. If you want to increase brand awareness, you can even brand them with your logo and distribute them in stores. Here are some ways to do this:
Reduces post-holiday sales
Using gift cards to buy holiday merchandise is a great way to extend holiday sales. In fact, a new study shows that 43.2 percent of respondents say they will give fewer gift cards this year, due to the fear that a retailer will file for bankruptcy. This fear is not unfounded – retailers are already planning to face their weakest holiday sales season in two decades. However, these cards do not provide the same level of protection for retailers as cash.