Consider Offering Gift Cards: “Gift cards used to be a plastic card with magnetic stripe like a credit card. They were loaded with a dollar value and given as gifts, ”he writes. “These were later roasted in a specific store or restaurant.”
As business owners already know that all changed with the Internet.
“Today, gift cards can also be digital – either sent by email or text message. This makes them an even more convenient gift option. Especially in the midst of a socially-distant holiday season. ”
He explains that they are important in saying that giving cards helps the business to increase revenue. And small businesses get extra sales when these cards are redeemed.
In the past, businesses unexpectedly pointed to the amount of money left as another benefit. Clopton says this has also changed with new laws.
“Recent legislation has made it easier for consumers to redeem gift cards for longer,” he says. “It has increased consumer confidence in the product.”
Still not sure about getting involved with a gift card? Another real benefit to consider is that customers almost always spend more than the original price.
“Plus, people often use gift cards to introduce friends and family to brands they love themselves. So this is a great way to gain new customers, ”Clopton writes.
Three main types
There are three main types to choose from. Plastic can be displayed in brick and mortar stores. E-gift cards are sold online and often sent by email. Then sold online there and sent via text.
Versions sold online can be stored digitally so are more secure than physical cards that can be lost.
Clopton explains that their ROI goes beyond incremental sales.
“Gift cards provide revenue to businesses through various channels – online markets, Facebook pages, company websites and more. They are also great for special promotions such as: buy $ 100 in gift cards, get a $ 10 bonus e-gift card. ”
After Hours Shoppers
These digital versions are also perfect for last-minute and after-hours shoppers.
There is a checklist when small businesses select a provider. Start by listing the benefits you want to offer your target market.
- Look for a provider that offers options that you can easily add to your website. There are still only plastic companies that need complex e-commerce setups.
- A good gift card provider should also have plug-and-play options that easily integrate with social media.
- You should be allowed to sell gift cards in an omnichannel environment, both online and at local drug stores and supermarkets.
Security should be another.
“The key is to select providers that protect against fraud and let you sell through various channels,” Clopton says. Small businesses need to choose their gift card program provider carefully. Many processors do not offer online digital gift card sales or anti-fraud features. ”
He has a cautionary tale for business owners to capitalize on local sales.
“These days, many consumers know that shopping locally is best for the community. But when they go to buy a gift card online, they find that the option is not available. ”
This can turn shoppers away from large chain stores or restaurants to purchase gift cards.
Finally, there are some traditional businesses such as coffee shops, retailers, and restaurants that do well with gift cards. However, all businesses can derive something from them and their promotional power.
“We’ve seen dentists, landscapers and apprentice services use gift cards to drive successful promotions and gain new customers,” Clopton says.