Looking for a new way to improve your sales and sell more than your competitors? One powerful strategy that savvy retailers are employing is the integration of gift cards with Point of Sale (POS) systems. This dynamic duo not only enhances customer experience, but also boosts sales and profitability. In this blog, you’ll learn more about how this synergy can be harnessed into new ways to increase retail sales.
Boost Immediate Cash Flow With Gift Card Sales Upfront
Selling gift cards provides an immediate cash flow increase for merchants. When a customer purchases a gift card, the merchant gets paid the full value upfront, while the cost of goods or services is deferred until the recipient redeems the card. This improves short-term cash flow.
This creates a beneficial timing difference that greatly improves short-term cash flow. Having access to these upfront funds can be invaluable for covering operating expenses during slower sales cycles or seasons.
Integrating gift card capabilities directly into modern POS systems makes it seamless for customers to purchase the cards in-store or online. This frictionless experience increases gift card adoption and takes advantage of the cash flow benefits.
To mitigate fraud risk, leading POS systems have advanced gift card management features like fraud analysis, exceptions handling, and tracking redemption metrics over time. With the proper controls in place, selling gift cards through integrated POS systems provides a lucrative way for merchants to expand their customer base while benefiting from upfront working capital funding.
Drive More Sales Through Easy, Integrated Redemption
Point of sale integration makes gift card redemption seamless and automatic during checkout. Reduced friction in the customer experience increases conversion rates and satisfaction.
Retail staff can easily check gift card balances right from tablets or mobile POS devices. Customers can also check their balances directly from a customized mobile app synced to the POS system. Smooth integration encourages convenient balance checks and hassle-free redemption during payment.
Leverage Data Analytics for Customized Gift Card Promotions
With gift cards and automated POS systems integrated, all transaction data flows automatically into sales reporting, inventory, accounting, and analytics systems. Merchants gain insights into customer purchasing patterns with gift cards, which products are popular, and demographic data.
This data powers highly targeted and customized gift card promotions around holidays, events, customer loyalty programs, and more. Personalized promotions encourage both new and returning customers to buy and redeem gift cards, maximizing repeat business and profits.
How Automated POS Systems Can Be Leveraged in Sales
Automated POS systems integrated with gift card and loyalty programs provide retailers with a powerful platform to increase sales. When a customer makes a gift card purchase, those funds are available to spend at that merchant, driving repeat business. Loyalty programs encourage shoppers to spend beyond gift card balances to earn points and discounts.
Streamlined POS systems make it fast and easy to redeem gift card balances and loyalty rewards during checkout. Reduced friction means more closed sales with larger transaction totals. POS systems also facilitate omnichannel fulfillment like buying online and picking up in store, creating flexibility that customers appreciate.
In-depth reporting provides sales data and metrics around gift cards and loyalty programs. Retailers gain data-driven insights around popular products, redemption patterns, demographics and purchasing trends. This allows implementing highly targeted promotions for each program that connect with customers at precisely the right time to incentivize more frequent visits and higher spending.
Automation technology improves cash flow with gift card sales upfront, while integrated POS systems reduce buying friction and enable smart promotions. Together, this is a profitable combination for increased sales.
Ways to Increase Retail Sales With Gift Card Incentives
Gift cards continue to rise in popularity as easier, more versatile gifts for customers to give friends and family. Savvy retailers have discovered that promoting gift card purchases delivers a lucrative opportunity to increase overall sales.
There are creative ways to boost gift card sales. Offer prominent in-store displays with a variety of design options near checkout and during peak holiday seasons. Train staff to proactively propose them to customers as gifting recommendations for birthdays, graduations, or weddings rather than just waiting for requests.
Create gift card bonuses and discounts for loyalty program members around special events or high-value card denominations. Allow online gifting options for modern convenience. These incentives spark incremental gift card sales that deliver prepaid spending funds into future retail transactions.
Gift card recipients tend to spend over the initial gift card balance, which converts directly into immediate profit at redemption. Integrated POS systems enable targeted promotions when balances run low to encourage cardholders back in store. Growing gift card channels provides a lucrative way to continuously attract new customers while increasing transaction sizes from current shoppers.
Gift Card Services with True POS
True POS offers a modern, automated solution for integrated gift card and POS services that reduce friction while maximizing cash flow. Gift card management features have been optimized to be intuitive for staff, yet robust enough to handle multiple promotions and denominations.
Gift card purchasing is seamless across channels — customers can buy card balances with credit or through the automated POS systems via multiple payment types: in-store, online, through mobile apps, or over the phone. Barcode redemption and bonus codes can be set for individual promotions. Real-time reporting offers in-depth analytics and metrics around gift card transactions, balances, and redemption patterns, so merchants can measure campaign effectiveness and fine tune promotions.
True POS offers reliable integrations with leading loyalty program software so retailers can strategically connect rewards point incentives back to gift card promotions that encourage increased customer loyalty and purchasing. Everything syncs together in convenient, automated fashion with True POS for enhanced staff productivity and maximized sales growth. Lock in more sales today with True POS gift card programs and automation solutions — get a free quote to get started.
