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­­­Why Every Small Business Needs a Gift Card Program!

Posted by Sonya Hoshmand

When you are a small business owner, every decision matters - who to hire, what strategy to deploy, location to choose, to name a few. All of these have an impact on your potential for future success. You want to maximize your chances of making a profit so you can build a thriving business. But even with the perfect location, great website, and social media in place, are you genuinely ready to maximize each the chance of making a sale?

The trend of online shopping is here to stay. The world has been shifting more and more into a digital world, with consumers demanding products to be digitally available. The holiday season is a prime example of when online shopping hits its peak, and this year will be no different. COVID has shown how adaptive human behavior is, and when things were forced to be shut down, we all made adjustments. People have been purchasing online to avoid crowded areas, and this holiday season will be the same. Many will not be seeing loved ones this holiday season, so to take out the hassle, worry, and guesswork, gift cards seem like the best option. Gift cards continue to be the king of gift-giving. A study we performed showed that around the holiday season, e-gift card sales tripled the week before Christmas compared to the first week of November in 2019, and we expect the increase to be even more significant this year. In contrast, the average amount spent on e-gift cards increased by more than 6x. Due to the pandemic, it will be no surprise if the number of e-gift card sales increases due to the social distancing protocol. 

 

One can utilize gift cards in a promotional event to increase foot traffic, increase average customer spend, and product sold. For instance, a business can create a promotion to increase lift. If a customer spends over $100, they will receive a scratch-n-save gift card ranging between ($10-$50 dollars), which they will be able to redeem on their next purchase. The best part of gift cards is that you can add conditions to them, so if your data shows that sales in January are slow, you can have the gift card in the promotion mention that you can redeem this gift card in the new year. This will increase your foot traffic after the holiday season alongside increasing the amount customers were initially going to spend. Gift cards are more than just a plastic card with money value on it. They can be used in different forms to create a unique customer experience. You have the opportunity to connect with gift-givers and receivers such as them visiting your store to activate new gift cards, check the balance, reload the card, and see what's on sale. 

 

With e-gift cards, you give tech-savvy online shoppers a way to give your products or services as a gift online quickly. Consumers want convenience, which is why so many shop on the go from their mobile devices – ease of use and limited time commitment needed. E-gift cards fit very well into this model. They are very flexible because they are always with the consumer and cannot be lost or forgotten, increasing ease of use. They can be bought last minute before a holiday or a birthday and be delivered right away. E-gift cards come with many benefits – they drive customer acquisition, create lift, and let your customers order beyond the shipping deadline cut off. Use them to attract last-minute online shoppers.

 

These days consumers want a seamless contactless experience where they can purchase items with ease. Gift cards and E-gift cards take out the hassle, worry, and guesswork of gift-giving. Can't travel to see loved ones this year, don't stress; send them a gift card from their favorite store. Make shopping with you and your business easy with gift cards and e-gift cards. 

 

In today's market, getting a gift card program is, in fact, instant and easy. If you don't have a gift card program, you truly miss out on the substantial business that gift cards generate. 

 

 

 

Topics: Gift Cards