With little effort, gift cards can do wonders for businesses, helping to bring in new clients while strengthening ties with current ones. Here’s a look at how gift cards may be used as a promotional tool. Consumer spending on gift cards has increased to over $129 billion, as reported by analytics and technology firm CEB. Present cards, formerly a last alternative for donors who couldn’t locate an acceptable item, are now the most popular kind of gift and the one most desired by gift receivers. A prepaid gift voucher is issued by a wide variety of major card issuers, and their receivers may use them to shop at any store that accepts credit cards from that issuer.
According to statistics from the Consumer Electronics Association (CEA), the popularity of “closed loop cards,” which are issued and accepted only at a limited number of retailers, is on the rise, according to statistics from the Consumer Electronics Association (CEA). This increasing preference for closed-loop gift cards offers smaller businesses a chance to compete with major companies and reach consumers looking for more meaningful, personal, and appreciated gifts.
Grow Typical Purchases
The average person who receives a gift card spends roughly 40% more than the card’s original value. According to CEB’s findings, despite the CARD Act of 2009’s limitations regarding gift card expiry dates, over $973 million in revenue relating to gift cards goes unused by customers.
You may boost the success of your marketing campaign and affect the average order value of gift card sales by issuing gift cards in denominations that are most likely to attract gift-givers depending on the occasion. Selling gift cards is advantageous since, unlike natural products, customers seldom ask for returns or exchanges after making a purchase. These features of gift cards benefit small company owners by increasing revenue and decreasing the chance of negative customer feedback, returns, and chargebacks.
Maximise Your Brand’s Potential To Attract New Types Of Buyers
To increase the perceived value to the consumer, you might employ a gift card structure similar to conventional marketing campaigns. For example, offering a free $10 gift card with a $10 transaction might cost your company the same as a $10 discount on your website, but the gift card consumers could see the free card as more practical. Gift cards are convenient for businesses to provide their consumers since they can be sent swiftly to any location and come in both physical and digital formats.
Connect Your Brand With Times Of Year When People Are Likely To Be Giving Gifts
Even though the holidays are prime time for gift card sales, over half of all gift cards are purchased for birthdays, and nearly 20% are purchased as a “thank you” gesture, as reported by FirstData. You may portray your business as a year-round giving destination if your gift card marketing campaigns are designed to coincide with major holidays.
Using a gift voucher in your marketing plan is a terrific way to stand out from the competition and reach a wider audience, solidify your customer trust, and increase your bottom line. As more people get comfortable using their smartphones for financial transactions, digital gift cards have taken off. You may save money on printing and managing physical gift cards and save time by issuing digital gift cards using a mobile payment platform. Virtual gift cards are frequently issued via email and typically never expire. Read the card’s terms carefully, as sometimes they can only be used online rather than in physical stores. Similar laws govern them as physical cards in all other respects.