Does it make sense for your company to offer gift cards? Our answer is a resounding YES. Here are just a few reasons why.
Small Business Gift Cards Boost Brand Awareness
What happens when someone buys a gift card from your business to give someone else?
Well, a few things. But one thing is that your business just gained a boost of brand awareness. Note that this happens whether your loyal customer is the one who bought the gift card or is receiving the gift card.
In the first situation, let’s pretend the person who bought the card is named Bill. Bill loves your business and is a frequent patron. Because he loves it so much, he wants to spread the word to his sister, Jill. By purchasing your gift card and handing it to Jill for the holidays, he’s doing word-of-mouth marketing: the most powerful kind.
In the second situation, the situation is reversed. Bill has talked to his sister Jill a few times about how he loves your business so much. Jill then decides that a great present for Bill would be a gift card to your company to save him some money. By going through the effort of finding your business, driving to the store or website, and buying a gift card, she is becoming more aware of your brand.
And what business owner doesn’t want more people to know about their company?
Gift Cards Let You Make Sales Upfront
Let’s face it – every business has busy times and slow times. That happens both on a daily basis – for example, maybe your afternoons are extremely slow – and on an annual basis. Perhaps your company is a lot busier in the summertime than the colder months.
The great thing about gift cards is they allow you to make some sales now for services or products rendered later. This can help you weather the storm, which is especially important in these crazy times we’re living in right now.
For example, let’s say another lockdown happens. COVID numbers keep spiking and government leaders decide businesses need to shut down. You can sell gift cards to bring in sales for now, even though you won’t be able to have as many customers actually come through your doors for a while.
Gift Cards Can Be Used as Incentives
Something else to think about is using gift cards as gifts.
For example, let’s say you have a brand new service that you really want people to try. You can offer them a small gift card in exchange for trying it. There are a few reasons why you’d do this.
- Get their feedback on what they liked or didn’t like about the new product.
- Drive additional revenue, assuming the new product is a premium product.
- Encourage the user to come back and use their gift card.
Big companies do this kind of thing all the time. For example, some pharmacies will give away a free gift card to their store if you get the flu shot there.
Conclusion
Should your company offer gift cards? We think so! Send us an email at info@paykoncept.com and we’ll help you get started.