‘Tis the season of giving! With the holiday season in a current full throttle, consumers everywhere are actively searching for the perfect gifts. For many people, the perfect gifts are those that can be chosen themselves. This is why, as a retailer, offering gift cards can be a significant game-changing strategy to boost revenue!
Whether you run a small boutique, a café or an e-commerce store, selling gift cards during the holidays can provide significant advantages for your business.
Gift cards increase sales revenue.
Gift cards count as additional items for sale in your store. With each sale of a gift card, your business immediately benefits. Firstly, you’re generating revenue for a product that hasn’t actually left your store yet. Essentially, a gift card is a promise that a consumer will return. But if he or she doesn’t, you still turn a profit. Secondly, gift cards serve as recommendations to others to visit your shop. They are great at attracting new customers.
Rebecca Harris of Canadian Grocer reveals some findings from the 2024 Holiday Shopping Survey by Retail Council of Canada (RCC) and Leger. “Gift cards present another opportunity for retailers,” she writes, “Restaurant gift cards are the most popular choice (44%), followed by big-box retailers (37%) clothing retailers (25%), and food and beverage (including grocery) retailers.”
Gift cards provide your business with an immediate influx of cash.
As we just noted, the selling of a gift card gives your company cash before it has actually sold a product. This is especially beneficial during the holidays when inventory, staffing and promotional costs are higher. Gift cards can act as a financial cushion. They allow you to cover seasonal expenses while planning for future growth.
“Gift card programs can improve cash flow, especially compared to other marketing techniques,” notes Worldpay, “Traditional marketing strategies with strong demonstrated return on investment take time to gain traction for sales results. Selling gift cards allows you to generate revenue in advance of providing products or services.”
Gift cards incentivize repeat visits.
Gift cards don’t just bring consumers into your store for one visit. Customers with unused balances are likely to return to your store. Positive shopping experiences may lead them to choose your business over competitors. So, of course, be sure to offer incomparable customer service to everyone who walks through the door. Offering gift cards also shows that your business understands the convenience and flexibility that modern shoppers value.
“You should consider that card programs can result in increased sales and revenue,” writes Lucy Fang of All Digital Rewards, “Gift card holders typically spend more than the amount on the card, which brings additional income to the business by promoting repeat visits and thus increasing lifetime value.”
Offer your customers the wonders of e-gift cards!
Contact Priority Pay to learn how you can begin offering your customers electronic gift cards. For many years, they have proven to encourage repeat business, attract new customers and boost sales all year long. Our Electronic Gift Card Program (EGC) is the perfect solution to lay claim to your stake in a new era of consumer spending. Give us a call at 1-888-431-4344. You may also email us at info@prioritypay.ca or request a quote on our Contact page!