Boost Gift Card Sales, Just in Time for the Holiday Season
In retail, customer loyalty is like the Holy Grail, especially during the holidays. But if raiding empty tombs isn’t your thing, gift cards are a much easier way to foster customer loyalty. Once a customer is introduced to your store through a gift card, they are more likely to return for more.
Gift cards boost revenue and leverage the natural sales spike that occurs during the holiday season. A recent study found that 45% of shoppers will spend more than the value of the gift card when they redeem them. Small business owners can use gift cards to boost awareness of their store, create strong customer relationships, and increase revenue.
Retailers Can Foster Customer Loyalty by Offering Gift Cards
Acquiring new customers is expensive. On average, it costs a retailer five times more than retaining loyal shoppers. As a result, increasing customer retention by 5% can boost your profits, in some cases by 95%.
So how can you retain loyal customers and increase retention? One creative way to improve customer relationships is to offer a gift card on their birthday or as a part of a rewards/loyalty program. When your customers associate your store with happiness and celebration, they will keep coming back.
No matter how good you and your staff are at serving your customers, you will have times when your customers could be more satisfied. Retailers can foster loyalty by offering customers gift cards when they have unresolved frustrations and complaints. By doing this, you are more likely to mitigate negative feedback and reviews while also ensuring they return to your establishment at a later date.
Set your brand apart from the competition with tempting offers and promotions using gift cards. You can target specific departments, product lines, or customer groups with dollar or percentage discounts when purchasing multiple quantities.
Gift Card Sales Can Increase Revenue
Everybody loves gift cards; in 2021, 80% of respondents across the globe planned to give gift cards instead of physical gifts during the holiday season, according to the Blackhawk Network. Additionally, most people, 72%, bought something for themselves when shopping for a gift card for others. This means small business gift cards can boost sales twice, once when the card is sold and again when the card is redeemed.
Gift cards are attractive to both the givers and receivers because they allow them to select their gift with their chosen features. Reducing the need for refunds and exchanges, saving valuable time during the busy holiday season for both the retailer and customer.
Gift cards can integrate with your point-of-sale system, making it easier than ever to reward your most loyal customers. In addition, you can review previous customer transactions to produce personalized rewards and promotions. While just under half of all gift card recipients spend more than the value of their card, many of the rest of those gift cards go unused. In that situation, unused gift cards are pure profit for your business.
The Holidays Are the Perfect Time to Enhance Gift Card Sales
Most people associate gift cards with the holiday season and, more specifically, as a last-minute gift-buying solution. Take advantage of the holiday rush by promoting gift cards, which will make customers more likely to return to your store in the future after the holidays have passed.
Gift card sales are a great way to introduce new customers to your business. As people are buying gifts for others, they’ll likely purchase gift cards for someone who’s never been in your store. That’s a new customer for your store!
Rewarding customers who buy gift cards is a great way to get your gift cards out the door. For example: “Buy a $250 gift card to get $25 off your next purchase” will boost gift card sales and your bottom line.
Another great way to improve your community and foster customer loyalty is to donate gift cards to fundraisers (holiday raffles). This will boost brand awareness and inspire potential new customers to visit your store.
Many people struggle with what to buy loved ones during the holidays or procrastinate gift-buying. Gift cards take the stress and the guesswork out of Christmas shopping and are the perfect solution for last-minute shoppers. As a result, the U.S. retail food gift market is predicted to grow to $50 billion in 2026 for both the corporate and consumer sector.
Small Business Gift Cards
Your business is not designed to sell everything. That’s a good thing. But it does mean that your customers will occasionally have to shop at other businesses. One way to help your customers and expand your customer base is to partner with a complementary business. Partnering with a company that is perhaps more well-known will attract more customers to your store. Customers will benefit from the double promotion and create positive associations with both businesses.
Boosting customer retention is vital for small and medium-sized businesses (SMBs). According to 61% of SMB respondents in a recent report, more than half of all revenues come from repeat customers.
A gift card linked to your POS system can give insights into the buying habits of those repeat customers, helping you create personalized offers and maintain incredible customer service.
Small business gift cards create brand awareness and foster customer loyalty.