Information on Merchant Accounts,
Ecommerce and Credit Card Processing

November 3rd, 2022 by J B

Benefits of Offering Gift Cards to Your Customers

Filed in: Merchant Accounts |

Gift cards are a popular holiday gift and for good reason. They’re easy to buy, easy to wrap, and they let the recipient choose their own present. But did you know that gift cards can also be a great marketing tool for small businesses? Keep reading to learn more about the benefits of offering gift cards to your customers.

  • Increased foot traffic. One of the most obvious benefits of offering gift cards is that they can help bring new customers into your store. If someone receives a gift card to your business as a present, they’ll likely visit the store to spend it at some point. And while they’re there, they may decide to pick up a few other items as well. This is especially true if you offer a discount on future purchases when a customer spends their gift card.
  • Improved customer retention. Gift cards can also help you keep existing customers coming back to your business. If a customer enjoys their experience at your store and likes the products you sell, they’re more likely to return in the future if they have a gift card to use. Additionally, if you offer loyalty rewards or discounts for future purchases when customers use a gift card, this can further encourage them to come back and shop with you again.
  • Higher average order value. When customers have a gift card to spend, they tend to spend more money per transaction than they would if they were paying with cash or credit. This is because people generally feel like they need to “get their money’s worth” when using a gift card, so they’ll add extra items to their purchase. Additionally, since gift cards can be used toward sales items or clearance items, customers may be more likely to take advantage of these deals when they have a gift card to use.
  • Boosted sales during slow periods. Offering gift cards can also help increase sales during slow periods, such as right after the holidays or during the summer months. Customers who receive gifts cards but don’t have time to use them right away will eventually come into your store to redeem them, which can help give your business a much-needed sales boost during these slower times of the year.

As you can see, there are many benefits that come along with offering gift cards to your customers. If you’re not currently selling them, it may be something worth considering for your business! Not only can gift cards help boost sales during slow periods and bring new customers into your store, but they can also improve customer retention and enhance brand awareness for your company. So what are you waiting for? Start selling those gift cards today!

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