Jan 18
By:
Ephantus Githinji Mwangi

Why You Should Offer Gift Cards to Customers

A majority of people prefer the convenience of giving someone a gift card, so your business should offer to spread the love! Not only are gift cards good for customers, but having gift cards can also benefit your business. Keep reading to see how offering your customers or clients gift cards can significantly impact your business’s revenue and customer satisfaction. 

A majority of people prefer the convenience of giving someone a gift card. It may seem like a less thoughtful gift, but it makes gift-giving a lot easier for those with busy schedules. Not only are gift cards good for customers, but having gift cards can also benefit your business.

From customer satisfaction to lessening the issue of returns or exchanges, it is a good business practice to be able to offer gift cards to those customers who want to spread the love. Keep reading to see how offering your customers or clients gift cards can significantly impact your business’s revenue and customer satisfaction. 

The Popularity of Gift Cards

At least 75% of people claim to use the gift cards they receive as gifts. Receiving or using a gift card is a trustworthy transaction process and a majority of people prefer to use a gift card when shopping if they have one. By offering gift cards to customers to purchase, you are increasing your revenue on items that have not yet already been purchased. 

Businesses already are attempting to offer incentives for customers to pay in cash instead of card, but when customers use a gift card to make a purchase the items they purchase are technically paid for in advance of an actual inventory purchase. Making it a smooth and easy transaction process for both business and customer. 

Unused Gift Cards

unused gift card vouchers

While that 75% claim to use their gift cards, there is that 25% who will most likely leave their gift cards to be left unused. While it is up to the recipient if they would like to use the gift card to make a purchase or leave them in the back of their wallet for a rainy day, your business will still have already made a profit off of the purchase of the gift card. 

This is a great way to generate revenue without the worry of having a lack of inventory or merchandise. Since gift cards do not expire, it does not mean that they will never be used eventually. Some companies buy unused gift cards and resell them or people can regift them to friends and family, meaning not all unused gift cards are lost. 

Reducing Returns

Gift cards typically are non-refundable once purchased and the items purchased with a gift card just get refunded on a new gift card or depending on the store’s policy, cannot be refunded. When a customer tries to buy someone a more personalized gift, it runs the chance of those items being returned. Your business can reduce the hassle and stress of dealing with a return by offering gift cards to customers. While it is a less personalized gift option, it makes it more convenient for the gift giver so that is why the recipient can purchase their own desired gift without worry that they will return or exchange it. 

Having a lot of returns or exchanges can fluctuate your business’s inventory and revenue, but by offering gift cards, you can reduce this risk. In fact, having gift cards can increase your revenue since people tend to spend more money than what was originally on their gift card. At least 60% of people claim to have spent more than the gift card they received was worth. This is a great opportunity to boost revenue flow and keep your customers happy. 

Creating Brand Awareness and Loyal Customers

happy and loyal customer with stack of gift cards

Customers who are already loyal want a way to spend their money on their favorite store and by offering a gift card you are giving them a reason to keep coming back to make more purchases. Additionally, loyal customers can buy gift cards for new potential customers who have never been to your business before, this is a great word-of-mouth advertising to generate new clientele. 

You can also use gift cards as incentives, for example, creating a loyalty program where customers can earn gift cards or rewards by spending so much at your business. This can motivate customers to spend more and feel as though they are getting rewarded for shopping or using your services.
By keeping your loyal customers happy, you are improving your reputation and allowing for your business to have a more targeted demographic and audience to focus your attention on when thinking about new business or marketing strategies. 

Decreasing Fraud Issues

Within the past few years a lot more customers are worried about data breaches at places they have used their credit cards. Using gift cards reduces the risk of leaked personal information since they are not tied to a specific user. Gift cards are also very difficult to duplicate, so there is no need to worry about possible fraudulent gift cards being used at your business. 

Companies such as True POS are here to help you set up your gift card services to assure you there is no possibility of people using paper or fake gift cards. Our services help set up your payment processing systems to accept gift cards and allow you to generate gift cards for specific amounts to your customers. 

There is no worry about losing revenue from gift cards since a gift card is almost always non-refundable, so people won't be returning their gifts for cashback. It is a guaranteed revenue increase by offering gift cards to customers because there is little to no risk of having them available for customers to purchase. 

Start building your business’s customer satisfaction and loyalty programs in order to generate more flow to your profits by making gift cards readily available and accessible to new and loyal customers. Even if you are an eCommerce business, you can offer digital gift cards and rewards via eGift cards or rewards programs on your website. 

With a payment processing system that you can count on, managing payments, gift cards, or customer loyalty programs is more accessible and safer than ever before. Get a free quote today and learn more about how True POS can help your business.

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