We have all at one point in our lives purchased a gift card for someone, whether diserving or discerning, and sometimes not. They seem to encapsulate our lives in many ways that we first thought. They are perfect practical gifts (especially for those who we do not know what to buy for), great as a cashback solution for your business and good as an incentive to make bigger purchases. Too good to be true right? Well in this following article we are going to explore how popular gift cards can also be successfully used in your company. Find out how they work and, above all, what benefits they can bring in practice.
Gift cards – why is it worth betting on them?
The principle is simple – you offer your customers a card/coupon that they can use to redeem for your products or services. An extremely positive facet about gift cards is that they direct revenue for your company in a direct manner, as they can be set to be only redeemable through your store (that’s not to say that others cant be redeemed through partnerships programs). Another benefit of gift cards is that you can offer them in various situations – as a perfect solution for a gift, but also as a return for returned goods or as a prize as a result of customer participation in some sort of promotional offer.
By choosing Sparta gift cards, you gain the ability to fully manage this solution and system. You will not only adapt them to the individual needs of your business, but you will also serve the purpose of efficiently serving your customers, building further brand-bonding. This is regardless of whether they choose to use the card in a stationary or online store.
Building the foundations and awareness of your brand
As aforementioned, each gift card is a tool with which you can build and strengthen relationships with.
In the process of providing this service you will get to know your customers’ shopping preferences even better, and you also have a chance to convince them to use your services again, thus increasing re-purchase. Gift cards are also a great alternative to cash for returns as they offer the opportunity for the sale to recirculate within your company thus, the money staying within your company. Interestingly, people who often use gift cards are willing to spend more than they first anticipated when shopping. This is explained by the basic psychological mechanism of ‘purchasing products will produce a greater hedonic benefit—for oneself, or for others’ – thus translating into a real increase in revenues for you.
However, you can also build relationships with new prospective clientele. With the holiday season fast approaching – the time when a group of your customers are looking for appropriate gifts for their loved ones – is by far an extremely advantageous scenario in which companies push gift cards. By offering them a card, you gain the opportunity to reach new recipients who have potentially not used your products or services prior. Such a gift is also a great recommendation for you, as the gifter has placed a level of trust in your company and sees it fit to pass on their positive experience onto you. Simply put, someone trusts you enough to invest in your product or service and give it to a loved one. Gift cards themselves offer a unique position for the customer as they are allowed the element of choice and the possibility of accessing a wider range of products and services. This serves as an additional opportunity for a new customer to convince himself of the high quality products you offer and to build an emotional connection with your brand. That’s how powerful a simple gift card can be.
Gift cards – an alternative solution for products and services during a pandemic
Pandemic? COVID-19? No doubt whilst reading this article you are aware of the strenuous situation our global community is under. Social distancing, preventative isolations, lock downs etc etc. This definitely has had an effect on consumer behavior and attitudes towards shopping, retail and otherwise. But it doesn’t have to be doom and gloom as there is a silver lining in all of this.
The flexibility of gift cards also makes them a great solution in times of our current scenario. The alternatives offered by a gift card are quite remarkable as they provide an avenue for the customer to purchase items, without even leaving their home. How do you ask? Well even if the stationary points where the card used to work are temporarily closed, your customers can use it online in the comfortable and relative safety of their home. If your business does not operate in an online modality then gift cards are a great solution to generate income by retaining customer interest. The card also can be used in a future period, allowing for the sales, and interest to be continued.
There are many possibilities with gift cards and it’s time to adjust them to your individual needs. We are at Sparta Loyalty and are willing to create a tailored and personalized system for you. If you are looking to get ahead, then contact us. We look forward to hearing from you.
