More than $160 billion is spent on gift cards per year, according to advisory company CEB TowerGroup. If you’re not set up to issue and accept gift cards at your business, you could be missing a huge opportunity to increase sales. Gift cards are widely popular all year round. And if you think that they’re only bound to get even more popular when this year’s holiday season rolls around – you’d be right! There’s no better time than now to get set up with a POS system that provides you with the ability to issue gift cards. Here are seven great reasons why your business should be offering gift cards to your customers.
Gift cards provide you with cash upfront.
Instead of waiting to make a sale, whenever a gift card is purchased or reloaded, that cash is yours until the card is redeemed. This upfront money can be used to handle expenses like inventory, payroll, utilities and more. In many states, you are actually to keep the funds on cards that have not been redeemed.
They help create repeat customers.
When someone is given a gift card to use at your business, they are significantly more likely to become a repeat customer. In fact, over 54% of gift card users visit more than once to use the balance on their gift cards. Not only do gift cards make it easier for customers to spend money at your business, but it also gives them a valuable and compelling reason to return and shop again!
They make returns easier.
Processing returns can sometimes be a pain for your staff and a hassle for your customers, especially when there are debates over how funds will be credited back. With a gift card program, you can set up a store credit policy that will expedite the process. Plus, you’ll be able to retain more of the funds from those returned sales when you’re able to offer an easy way for customers to spend the money in your store.
They help you reach new customers.
Gift cards can help to bring new customers through your doors for the first time. Statistics published by Credit Card Hub revealed that over 41 percent of consumers surveyed stated the most common way they discovered new businesses was from being given a gift card. Customers that love your products or services can give the gift of discovering them for the holiday season, and you’ll have a chance to gain new repeat customers by wowing the recipients of those gift cards when they visit your location.
They give you some “free” money.
Not every gift card that you sell will end up being redeemed. Market Watch reports that every year $1 billion of funds on gift cards are not redeemed in the United States. While it may only be a small percentage of the cards that you issue, those few cards that you do sell are pure profit.
They increases sales during the Holidays.
The National Retail Federation estimates that roughly $30 billion is spent on gift cards during the holiday season alone. Many surveys revealed that gift cards are the number one gift for the holiday season.
If you own a retail store, many customers would rather purchase a gift card for their friends and family members than something from your shelves, meaning you could lose sales to competitors without cards to offer. For restaurants, salons, spas and other service businesses, a gift card program can help you benefit from holiday spending in a way that you otherwise wouldn’t.
They keep sales flowing in after the Holidays.
Retail industry reports show that the average shopper will end up spending 20 percent more than the value of their gift card when they shop. As a result, your business can benefit from a sales boost not just during the holiday season but also during the first weeks and months of the New Year.
Clearly, the time to start accepting gift cards is now. GoEmerchant can supply you with an upgraded POS system that enables you to sell and accept gift cards at your business. Make sure your gift card program is ready before the holiday season. This will give you time to ensure that your staff is fully trained and ready to start promoting your new gift cards. Visit www.goemerchant.com/pos to get started today.
