Many times, the benefits of offering store gift cards (or virtual gift cards) are overlooked by merchants. Gift cards are vouchers that holds a certain money value, personalized with the recipients information and can be used as an alternative to payment method.
Businesses that look forward each year for the holiday season boost, gift cards can significantly make a difference in increasing their sales. One of the main advantages of store gift cards is that they can be easily branded, personalized and customized along with giving a full control to the store admins to track the usage in order to understand where the customer likes to spend money via gift cards
According to merchantwarehouse, gift cards eclipsed $118 billion in 2013, an eight percent increase over 2012. While e-gifting fueled a significant portion of the overall growth (increasing from just $300 million in 2012 to an astounding $3 billion in 2013), traditional retailer gift card volume grew as well, rising from $36 billion to $39 billion.
Today, we will discuss some key benefits of offering store gift cards.
A great way to market your business as a brand
Store gift cards works as a great marketing tool in your customer’s pocket or online accounts. As shoppers buy more gift cards for their friends or family on holidays, birthdays and parties, your brand name continues to spread among new customers. In other words, you can also see store gift cards as a good in-build referral system that generated new loyal customers and more revenue.
New customers
The current customers (gift-giver) who buys your store gift cards are already a supporter of your business. But, when they give your store gift card to others, it opens a wide door for your business to attract new customers. For many businesses, gift cards continue to be an effective way to bring new shoppers and encourage repeat customers.
Another way to look at gift cards in attracting new customer is: For example: If you offer a product line which is new to shoppers and some customers would not buy it normally. But if someone has your store gift card, they will be more encouraged to visit business (or store) and likely to buy something from you.
Enhance revenue / sales
Even though a gift card holds a certain money value, majority of shoppers using your store’s gift card will end up spending more than the original card value. With a customer, who buys the gift card for a friend or loved one, it increases the probability that the gift-receiver will likely to return to your store in order to use the gift card but there is no guarantee. But, with a gift card purchase, you as a business owner will always receive the money up front, irrespective of anything, if the card is redeemed or not.
Holiday season is the prime time for gift cards that bring in more sales and revenue to your business. People who don’t know what to get a friend or family, they end up getting a store gift card as it is a better way of giving a gift instead of simply handing over some cash. Majority of purchases these days are done online, so offering store gift cards is a great way to enhance the business revenue.
What kind of value a customer gets from buying a gift card?
- For many customers, a gift card is a time saver as customers do not have to brainstorm in deciding what to get and they know that the recipient will buy something that he/she like.
- Gift cards gives the customers a great flexibility and convenience because it can be used anytime and for any kind of purchase.
nopCommerce offers the gift card functionality that every merchant needs, no matter if running an online or offline business. nopCommerce supports two types of gift cards: gifts cards delivered via e-mail (Virtual) and classic gift cards to be sent via post office (Physical).
Author: Lavish Kumar