Who doesn’t like gift cards? They’ve been at the top of most people’s wish lists for 11 years in a row now, according to the survey by the National Retail Federation. They're not only convenient to use but also simple to buy, especially if you're looking for that last-minute present. Here’s why combining gift cards with the right loyalty programs can help drive significant growth for your small business:
Raise Customer Awareness
Ever received a gift card to a shop or a café you’ve never visited before? Most people have and, unless they want to contribute to the $1 billion in gift cards that remains unspent each year, they'll eventually pay that place a visit. In the meantime, they'll continue seeing the gift card and the logo of the business that sold it each time they open their wallets. Now imagine if this business was yours — what you get is essentially free advertising with multiple customer touchpoints that help you raise awareness of your small business.
Increase Sales and Revenue
Of course, the more people that visit your business, the more you'll generate in sales and revenue. But with gift cards it goes beyond simply the numbers game, venturing into the psychology of spending. In reality, many consumers view them as “free” money and often don’t use them with the same thriftiness as they would a credit or debit card. This results in overspending by an average of $38 dollars, according to Hospitality Technology, and can greatly contribute to your bottom line over time.
Encourage Repeat Business
If someone enjoys your product or service, they're likely to become a repeat customer. Loyalty programs exist to encourage this behavior by providing additional incentives, such as discounts and rewards. If set up properly, they could not only encourage repeat business but also supplement it with increased spending. One of the best examples of a business leveraging their loyalty program is Starbucks, whose patrons, according to MarketWatch, had “$1.2 billion loaded onto Starbucks cards and the Starbucks mobile app as of the first quarter of 2016.”
However, you don’t have to be a large corporation to reap the benefits of a loyalty program — all you need is to find great payment processing. TransNational Payments has been helping small businesses do exactly this for nearly two decades. Contact us to discuss gift cards and loyalty programs that can help enhance your small business today.