A majority of restaurants, retailers and even small businesses offer their customers some type of loyalty or gift card program. Gift card usage is more than a way for people to purchase your products; it is also a great promotional tool that benefits your business for the long term.
If you are new to offering gift cards, still use paper gift certificates, or are struggling to issue your current cards, consider these five reasons to upgrade your system in order to keep up with this growing and profitable trend.
Your Customers Want Gift Cards
It is a fact: Consumers love and want gift cards. Here are some facts to consider from ejGiftCards.com:
- Gift cards are the #1 most requested item during the holidays.
- More than 90% of consumers buy or receive gift cards each year.
- More than $100 billion is spent on gift cards each year.
- The average value of a gift card is $45.
Your Sales Increase
Research shows that the majority of gift card users tend to spend more than the face value of the card. When customers use gift cards, they tend to be less sensitive to product prices because it feels like they are spending free money. In addition, gift cards aren’t linked to consumers’ personal accounts, so they may feel safer using them than their credit or debit cards.
You Get Cash Upfront
When customers buy from your gift card program, you get to keep the cash until the card is redeemed in the future. This cash source builds quickly and can help fund purchase of inventory or pay operating expenses. Furthermore, if the card is never redeemed, you keep the profits from the sale, as long as the jurisdiction governing your business allows you to.
Your Customers Return
Gift card benefits are twofold. Not only does a customer buy a card from your store, another person will return at a later date to redeem the card for another purchase. Since, according to ejGiftCards.com 90% of cards are used within 60 days after purchase, you can tie in gift cards as part of a holiday promotion to keep traffic coming back after the holiday season ends. Also consider tying in loyalty rewards with your gift card program. This gives consumers an added incentive to return to your business.
You Achieve Brand Awareness
A logo on your gift card is smart, effective advertising. Every time a customer opens his or her wallet, it is a constant reminder of your business. Recipients of your gift cards have the perfect incentive to dine at your restaurant, perhaps introducing new customers to your great cuisine.
As the popularity of gift cards show no signs of decreasing, it’s a wise move to develop a strategic and effective gift card program, leveraging the right technology to efficiently issue and redeem gift cards and collect data, that can help you advance your business overall.
You can implement the Focus POS gift card program in your bar, quick service or table service restaurant and get benefits like better brand awareness and improved cash flow. Contact us to find out how.