This week we are discussing the specific reasons as to why gift cards are beneficial for small businesses. No matter the type of business, gift cards are always a great resource to have helping gain advantage over competitors, gain higher profits, brand awareness, customer loyalty and much more. These benefits are great for any business, but we wanted to introduce the specific ways in which a small business can benefit.
1. Compete with Nationwide Stores: For small businesses, it isn’t easy competing with the big boys, but gift cards help ease this. Customers love the convenience of simplicity and accessibility, which gift cards can easily do for consumers. Customers have busy, hectic lives, especially during the holidays and because of this they will turn to an easy outlet for presents like gift cards.
2. Customers Will Spend More: It has been proven that customers who use gift cards are more prone to spend more money than the amount originally allotted on the gift card. Consumers buy items they did not enter the store for, consume more products, and even purchase from stores they don’t normally visit. Additionally, if given a gift card consumers are more likely to pay for regular priced products than discounted or sale, since it is not their own. Gift cards increase sales tremendously.
3. New Clients: Gift cards have a high probability of attracting two customers for the price of one. Studies have shown that if consumers who receive the gift card do not visit the store frequently, once receiving a gift card they changed their behavior in order to spend it.
4. Relationships: Overall, gift cards are a way to build loyal customers and maintain consumer relationships. With electronic and reloadable gift cards, it is a more efficient way of creating those relationships, because you are able to interact with customers in additional ways, whether it is through consumers browsing your site to activate their card, reloading, or visiting the store itself.
PayHub Payments offers gift cards and reward programs with standard or customizable options. For more information, click here.