Gift cards account for billions of dollars in consumer spending every year and are one of the most requested and popular holiday gifts. The gift card industry is expected to reach $160 billion by 2018, according to Gift Card Granny. With an ever-growing nature, gift cards present a great opportunity for small businesses to cash in on this consistent profitable trend. Gift cards are a simple way to increase sales, better relationships with existing customers, and attracting new ones to a business.
Many merchants do not fully understand how effective gift card programs can truly be. Regardless of whether a business is attempting to attract new customers, retaining existing customers, or adding value to products, gift cards can create a huge boost in sales. Resellers can help merchants establish gift card programs, especially when equipped with the right knowledge.
Here are five tips to help sell gift card programs to more merchants:
Tip #1: Gift Card Programs Help Merchants Compete with National Brands
The gift card market accounts for more than $129 billion in consumer spending, according to the CEB. Large chain retailers and businesses understand that consumers love gift cards and have long been producing them. CEB’s data also found that closed loop cards issue and accepted by specific merchants are continuing to increase in popularity. With this shift in presence, this is the perfect opportunity for resellers to sell gift card programs to merchants. Presenting the data and showing merchants how they can compete with big box chains would move them more in the direction of wanting to establish a gift card program.
Tip #2: Gift Card Programs Increase Customer Acquisition and Retention
Customers are at the center of any business – whether that be establishing customer loyalty or bringing in new customers. Resellers can show merchants how gift card programs can bring repeat visitation and increase new traffic. Gift cards do more than just act as a word-of-mouth referral. They serve as a call to action to whoever is receiving the gift card. They offer the potential to bring in at least two customer to a business, the person buying the gift card and the person receiving.
Tip #3: Gift Card Programs Offer Merchants Guaranteed Revenue
Unlike products, gift cards cannot be exchanged or returned, which essentially means that the money spent on them will stay within the store. On top of the guaranteed revenue that gift cards bring, they have the potential to bring in even more money to the business. According to Giftcards.com, an estimated 72% of customers will spend more than the value of their gift card. Money talks – resellers need to show gift card programs to merchants in these terms. The cost of implementing a gift card program will pay for itself and then some with the amount of sales it can bring.
Tip #4: Gift Card Programs Build Brand Awareness
Gift cards are one of the most convenient ways to advertise a business. Gift cards are essentially a pocket sized advertisement and cost a lot less. Every time a gift card is purchased, your business is more than likely profiting from the sale beyond the monetary benefit. Resellers should give merchants tips for how to better their gift card programs, such as establishing a loyalty program or how to display them in a store to increase sales.
Tip #5: Gift Card Programs Reduce Fraud
Security is always a major concern for customers and it should be a major concern of business owners, as well. Resellers should position themselves security advisors and share their knowledge with merchants, especially regarding gift card programs. Fraud will always occur but gift cards can help reduce the amount of fraudulent activity since there is no need to worry about a cardholder’s information being stolen or someone reporting fraudulent activity.
If a merchant is not using gift cards, resellers need to show them why that is only hurting their ability to make more sales. In addition to boosting a business, gift cards can go a long way towards helping keep existing customers happy, earning new customers, adding even more value to products, and helping merchants compete. No matter what industry a merchant works in or what a merchants specific business goals are, gift cards are a great tool for increasing business and clout. Resellers need to use knowledge and the tips listed above to help merchants establish a gift card program that works for their individual business.
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