By incorporating a gift card program into your marketing strategy, you can attract a wider range of potential customers, foster stronger connections with existing customers, and enhance both your profitability and brand recognition. In this article, we will discuss the diverse benefits that gift cards bring to your business.
5 Benefits to having a gift card program
1. Enhance sales and revenue
Leveraging gift cards can be a valuable strategy to drive sales growth, especially considering that 61% of consumers tend to exceed the value of the gift card when utilizing it. In addition, gift cards aid in brand awareness and offer a considerably stronger return on investment (ROI) compared to alternative marketing avenues.
2. Earn interest from each gift card sold – from point of sale to the time of use
Think about it. When you sell a gift card, you are technically selling just that – a card. You haven’t let go of any merchandise – just yet. You have the ability to earn interest on your earnings without letting go of any product. In most cases, when the product is finally purchased using the gift card, you’ve already made your money plus more!
3. Encourage, build, and maintain customer loyalty with gift cards
A strong gift card program can effectively cultivate new customer relationships and sustain existing ones. Gift cards offer a great chance to introduce your business to potential customers. Consider this: there is a strong possibility that individuals who receive your gift cards have never visited your business before.
Cultivating customer loyalty is paramount for the success of any business. By providing your current customers with gift cards for major occasions, you can strengthen your relationship with them. For example, you can give your loyal customers a $5 or even $10 gift card to celebrate their birthday.
4. Slippage
What is “slippage” exactly? Unlike gift certificates, cash is not reimbursed to customers who do not redeem their full gift card value,” Many estimates indicate that approximately 6-10% of gift card balances are never used. Selling gift cards means that you’ll be making money without having to relieve yourself of your products. The truth is, some people just don’t end up using their gift cards. Its still money earned for you!
5. Avoid theft and fraud damages
Gift cards effectively mitigate the risk of fraud because they require activation on your part at the point of sale.
Vanguard ID Systems is a leading manufacturer specializing in custom-made card solutions and RFID technology. Our range of custom card solutions includes gift cards, loyalty cards, and direct mailers, all of which can effectively enhance the exposure of your brand and attract a wider customer base. Our RFID technology solutions are designed specifically for your business needs, enabling you to enhance efficiency and profitability throughout your organization. Our personalized RFID solutions include labels for inventory management and asset tracking, and bands and cards for access control to name a few key areas. Contact one of our Vanguard ID Systems Technical Representatives today at 1-800-323-7432 or email us at info@vanguardid.com
