Attract new customers
Gift cards are widely used as gifts, hence their name. Anyone in your business who accepts a gift card is a potential customer who will come to your store to “redeem” the gift. If the experience is enjoyable, you will definitely win new customers. Buy your favorite gift cards through online shopping in Pakistan.
Like real money
Customers perceive the gift card to be equivalent to real cash that can be used immediately. More than half of consumers visit your location multiple times to redeem a gift, offering cross-sell and cross-offer opportunities.
Profit in advance
The gift card system guarantees money in advance for any product or service. And as the saying goes, “A bird in the palm of your hand is better than a hundred flying.”
A large amount sold as a gift certificate can be used for anything you need. Money you already have in your pocket, whether to reinvest in your business or pay your salaries. At some point you will have to provide that amount in your product or service, but this could be a week, a month or a year. In some cases, you don’t even have to deliver anything.
Breakage ultimately means any type of paid service that customers do not enjoy. In this case, it refers to the amount remaining on the card that has not been charged.
A person can receive a gift card for $10, exchange it for a $9 item, and throw the card in the trash. In this case, the retailer shipped the product for $9 and made a profit of $10.
Others may not use the card to receive a gift card for a service or item that they do not need.
Generate higher revenue
2 out of 3 customers spend nearly 40% more than the value of a gift card. The customer will purchase a product of higher value than stated on the gift card. In this sense, they are much better than coupons and other types of discounts.
Gift cards are a good investment in advertising your company. They invite your business to spend with mini billboards in your customers’ wallets. They help highlight your brand to a wider audience and increase visibility, like the example of starbucks Pakistan. It also generates more revenue at a lower cost than traditional advertising.
Avoid fraudulent returns
If you offer a gift card as a payment method for a returned product, we will ensure that the amount is used again in the store. This will reduce fraudulent returns.
Open up another avenue for promotion
You can use the gift card system as part of your promotional strategy. You can make various offers to keep your card balance, monthly replenishment, etc.
Also, use this opportunity to promote your store to local residents and offer low-value gift certificates to real estate agents, charities, banking institutions and travel agencies. It is an investment that will pay off when new customers arrive in the medium to long term.
Implementing a gift card system
You can also adopt a voucher or physical voucher system and implement it digitally. Technology allows you to expand the number of customers you reach, and more methods available will lead to higher sales.
The advantage of using technology applications for gift cards is that they can be distributed via social networks or email.
There are many companies dedicated to adapting this type of system to your business. They offer different approaches to gift cards. You manage everything from the printing and delivery of physical cards with your company logo to the implementation of your company’s internal virtual shopping store for company gifts.
We hope this information has helped you expand your knowledge of gift cards. If you think this tool is ideal for your business, don’t wait any longer and seek implementation advice.