Gift cards are popular at big, corporately owned stores and large retail chains. However, if you own a local small business, there is no reason you shouldn’t discover the likelihood of offering gift cards to customers this Festival season. Below are the reasons on how it can increase your business revenue.
1. Build More Touch points and launch a Loyalty Program
There are plenty of ways to create touch points. To begin with, set up a structure where the recipient of the gift card has to activate the card online. From there, you can gather email addresses to put on a mailing list. By building up the customer list, you will be able to send newsletter, sales promotions, sales offers etc. This will connect customers to more reasons they should come into your business and spend their money. In addition, having the gift card require activation means that customers will have to spend more time on your website, if they need to check balances or reload their card. This can drive additional traffic to your site, bettering the chances they will make a purchase. Beyond the touch points, launching a loyalty program is assured to increase sales. Loyalty programs generate greater value for the customer on the low-cost gift card.
Furthermore, MiyaMiya develops a white labeled loyalty program for our associated merchants, wherein; you can engage, understand, retain, increase profits and reducing customer churn.
2. Assured revenue
Unlike physical items that customers may purchase as gifts, gift cards cannot be exchanged or returned, so those rupees will stay in your bank account. And when shoppers don’t spend their cards that also adds to your revenue. They call this “breakage”. For small business owners, these qualities are an effective strategy for maximizing profitability and reducing the possibility of lost sales.
3. Generate New Customers you wouldn’t otherwise attract
At a 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
4. Expand your customer reach by aligning your brand with Festivals
The most popular time of a year to buy gift cards is during the Festivals seasons. But customers also purchase gift cards for other exceptional occasions such as birthdays, weddings and to show appreciation and gratitude for friends and colleagues. You can side with your business to these popular gifting occasions by offering gift cards that match these events. For instance, create gift cards that say “Happy Diwali” or “Onam Greetings” and then promote those options through in-store signage, social media, or email campaigns. The advantage of doing this is that public will think of your company when they’re searching to purchase a gift.
5. Minimize Risk of Fraud
Another reason to offer privilege cards is to offer your consumers a greater sense of security. Majority of the consumers dread they may be a prey of identity fraud and these numbers increases each time. As a result of recent rashes of credit card theft and data breaches, there may be consumers unsure to seek new retailers, as well as your small business.