3 Ways Gift Cards Can Boost Sales for a Small Business

May 11, 2017

Starting a gift card program is easy. With a range of gift card programs out there, there is almost no excuse for not having some kind of gift card option to offer your customers.

Gift cards are everywhere these days, with people buying them, using them, giving them, or asking for them. They are not just solely for holidays anymore and they are not just reserved for the Big Box stores and large retail chains. If you are an owner of a small business and you have not jumped on the gift card train, you are missing out big time on a number of opportunities to improve your sales productivity. 

Starting a gift card program is easy. With a range of gift card programs out there, there is almost no excuse for not having some kind of gift card option to offer your customers.  The most important reason to get a gift card program up and running is to increase your sales. While gift cards are effective in reducing gift certificate fraud, provide convenience for consumers, and increase brand awareness, the primary benefit of investing in a gift card program is to increase profits. Below are 3 ways that gift cards can boost sales for your small business –

1. Bring in New Business

A gift card program has the potential to bring in at least two customers to your business. The first being the giver of the gift card and the second being the receiver. Usually they are given by your loyal customers to their friends or family with whom they wish to share your service or product with. This is a perfect way to get in a little free advertising. You can use this opportunity to impress the giver and receiver with excellent customer service, product or service knowledge, and encourage repeat visits to your location. 

2. Customers with Gift Cards Typically Spend More

If a customer receives a gift card with a certain amount of money loaded onto it but they want to purchase something more expensive, then the individual will usually go out-of-pocket to cover the rest of the purchase price. Consumers tend to spend more when they already have a certain amount to spend at a business. According to, 72% of customers will spend on average 20% more than the amount allotted on the gift card. This is an easy way to boost profits and satisfy customers. 

3. Create More Touchpoints and establish a Loyalty Program

There are a number of ways to create more touchpoints. For starters, set up a system where the receiver of the gift card has to activate the card online. From there, you can collect email addresses to put on a mailing list. Having customers email addresses will allow you to touch base with them by sending sales updates, promotions, and special offers. This will connect customers to more reasons why they should come into your business and spend their money. In addition, having the gift card require activation means that customers will have to spend more time on your website, especially if they need to check balances or reload their card. This can drive additional traffic to your site, bettering the chances that they will make a purchase. Beyond the touchpoints, establishing a loyalty program is bound to drive sales. Loyalty programs create greater value for the customer on the relatively inexpensive gift card. 

These are just three of the ways that gift cards can increase sales for your small business. They’re a great way to reward loyal customers and attract new business as well. Whether you run a retail store or provide specialized services, gift cards customized with your company name are a relatively inexpensive way to market your business that can more than pay for itself over time in increased sales revenue. 

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