There is a lot of money being missed if you aren’t offering gift cards as part of your business. Nearly 93% of American consumers have given or received a gift card and last year this industry was estimated to be worth $160 billion, according to Gift Card Granny, a gift card exchange site.
While this isn’t a new idea, it is one that is often missed and a great way to help grow your business.
Here are three ways Gift Cards can help grow your online business:
A surprise increase in revenue
Gift cards bring money when they are purchased, but they also open the door for more money when they are redeemed. The average card user will spend an extra $30 on top of the cards pre-loaded amount according to a survey by First Data.
This is because shoppers see the gift card as “Free Money” and will more often than not add their own money to buy something at higher prices.
New Customers are introduced to your products
Gift cards expose your business to people who may not have ever heard of you before. People who love you will buy these cards for your friends and in turn this will expand your customer base.
Loyal and Repeat Visits to your Website
Offering promotions with your gift cards is a great way to increase loyalty with your current customers. For example, offer a free $5 gift card to customers who buy $50 worth of gift cards.
This may encourage the customer to spend more money; in turn you will be able to drive up your gift card sale. Think outside the box and offer bonus gift card offers during the slow period of your business.
To move forward with offering gift cards, put a strategy in place that will make sense for your business. Shopify and the Square App have things in place to make it pretty easy to create and sell custom gift cards for your business. There is also use tools like Giftyl, software that allows you to create, sell and market digital cards.
So, let us know in the comments, are you using e-gift cards to help increase sell in your business? Are you looking into it? Would you like to see a video on how to use some of the tools mentioned to create these for your website? We want to know.