Gift cards are known to call upon your primal instinct to redeem anything that the store has to offer. Today when a majority of things are clickbait, do people still fall in for the oldest trick in the book? One thing that gift cards are known to provide customers is the flexibility to be used in multiple ways. However, they also make it easy for business owners to monitor overall sales improvement by tracking payments redeemed via such codes and vouchers. But can these fetch more sales in the long run? Let’s unpack it one at a time.
Gift Cards & What They are Capable of?
FirstData reports that 81% of customers prefer receiving gift cards as store credits, while 71% are interested in receiving rebates via gift cards. If that’s not a crafty, win-win in getting your customers to return to your store, we don’t know what else is. Gift cards can subtly play on the customers’ minds to get a rundown of all things they can avail (even when they’re not entirely interested, just in case), without even them knowing it. Covert marketing at its subtlest.
Here are a few more elements that gift cards are known to provide:
Perhaps one of the most compelling features of gift cards is their ability to be seen and heard – loud and clear. And the best part is, it can be organic (most of the time). Think about it, if you’re expecting guests and are unsure of what to buy them, you can always present them a gift card from your favorite online stores and live to see another day without getting misunderstood! Now the recipient of the gift card may or may not be aware of your store, but they can be relied on to check out the stuff they can redeem. Again a fine example of word of mouth.
Customer Loyalty & Retargeting
For small businesses investing in gift cards can seem risky initially when they don’t have a customer base. But, with time, when people get to trust your products, it can be a great way to honor their trust and loyalty, as they keep coming back for more.
Not just the gift card recipients but the ones purchasing the gift cards can benefit from special discounts/offers. In holiday seasons, sales, or special occasions, such gift cards provided by business owners can get them converted and reconverted for your products and services.
Umm… So They’re Good for my Business?
In short, yes. But there’s more to them than that. A lot has been said and done about gift cards, but it entirely depends on your purpose. For instance, if you’re looking to expand your inventory and introduce new products, providing a coupon code than a gift card will be more relevant. So, to be more consistent with your goals, here are the following purposes that gift cards can contribute to:
Goal #1: Get more traffic
eGift cards are everywhere, and it’s a good thing since it eliminates plastic/paper cards that are non-sustainable and can be easily misplaced. Such eGift cards can be sent via emails or apps and looped in with your customer/leads’ network to your store. Not only does it increase traffic, but also customer interaction and engagement, helping you to know their activity, on and off your website.
Goal #2: Newer Demographics/Customers
With more interaction comes more possibilities. No matter how small you start (in terms of your serviceable area), with more people flocking into your store unless you’re a niche business, expect people from newer age groups, locations, coming to know about you – including those who wouldn’t have stopped in before. Depending on the engagement and conversions, your business’ target audience and area can expand, opening more opportunities.
Goal #3: Manage returns and rewards
Imagine your customers are not happy with their products and would like to initiate a return. You can always provide them with a gift card to make their experience better in addition to their refund.
Overall, gift cards can be an easy, cost-effective tool to drive more sales, build customer retention, as well as enhance your visibility. With the holiday season just around the corner, now may be the perfect time to add gift cards to your online store. Here are some of our recommendations who can help you with getting your store equipped:
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