8 Gift Card Benefits That Boost Your Profit Margin

GiftCard_Pop_6077The Gift Card, or gift certificate, has been around a long time, but only recently have they been so easy to give and receive. Us businesses have reaped the benefits totaling $23 billion last year. When you add in the fact that 2% to 5% of gift cards never get used, it is easy to see how gift cards can make a positive impact on your bank statement. But have you thought about the other benefits that come with selling gift cards?

More Sales Opportunities

Gift cards are paid in advance with the express purpose of giving to someone the customer knows. That means another visit to your store by the recipient. More than likely they will spend more than the dollar amount on the card, and you will get another sale.

Instant referral

One of the biggest benefits is the referral you get. Think about it, one of your customers that has done business with you before liked your products or services enough to not only encourage a friend to shop here, but make the first purchase for the recipient. They invite their friend to your store on their dime. In essence they are telling their friend, “I like and trust this business, I think you would too, and the first trip is on me.”

Universal Gift

We all know how hard it is to buy gifts for friends and relatives. The people we love the most are sometimes the hardest to buy for. Gift cards are an easy way to help your customers find a gift for that last person on their list. You can save them time, stress and that painful decision making process. And gift cards are always the right size.

Profitable Marketing Tool

Gift cards can be a powerful marketing tool. Beyond the referral power they possess, when someone receives a gift certificate, they will probably visit your website to learn more about your business. This gives you multiple opportunities to convey your marketing message, promote large ticket items, and even make an online sale. You get all this marketing power and you get paid to use it.

Word of Mouth Multiplier

When the recipient gets your gift card, the most natural reaction is to tell someone about the gift. Even if they have never been to your store, they will tell some one they are going to go spend it. And will often report to their friends later about the experience. Bingo! You have just turned a small piece of plastic into many referrals.

Branding, Branding , Branding

Gift cards of today are typically glossy credit cards with your graphics on the front. However even if you are using gift certificates you print from your laptop, don’t miss out on your chance to further brand your company. You can use this little tool to convey your marketing message, promote certain products, or even share some testimonials. Just don’t neglect this opportunity.

Give Gift Cards to Your Best Customers

Appreciate your loyal customers with a little gift card love. Show those customers how much you value their business by giving gift cards to them. You could even super size your appreciation by sending two gift cards to them, one to keep and one to give away. They will be pleased at your gesture and look like a hero to their friend. You will reap the benefits.

Smooth Over Mistakes

We have all made mistakes in our businesses and want to we’re sorry for the trouble. Gift cards make a great way to show that your apology was sincere and that your customer’s business is important to you. Improving customer loyalty and making up for hard feelings in one move. This also improves your chances your customer will tell their friends how helpful your customer service is.

There are several places online that you can get gift cards made like giftcards.com, but don’t discount just making your own. Either way, your customers will benefit from them and so will you.