Gift cards seem so cheesy, but they’re a powerful marketing tool that should never be underestimated. Though they may seem like something that was invented to give to people who are incredibly hard to shop for, companies would be very wise to start a gift card system at their place. If you haven’t given it a thought for your place of business yet, you really should. Here are five facts that will change the way you see gift cards as marketing tools.
- Statistically, people who give or are given gift cards tend to become more loyal customers. In other words, having gift cards as an option improves customer loyalty and retention. By letting your customers have that option, you’re giving them a reason to return – and also spread the word about your company.
- Speaking of, gift cards are also known for being a good way to spread brand awareness. Word of mouth advertising is still the most powerful and trusted customer attraction method there is. When you have people who are (literally) willing to put their money where their mouth is, that says volumes about your company’s brand – and other people will take note of that.
- Gift card programs are also affordable to implement. You don’t have to be a multinational corporation to be able to start your own gift card program. In fact, many gift card programs can be done on a small business budget.
- Despite them being affordable to implement, they have a ridiculously high return on investment. Gift cards are linked to spikes in profitability as high as 10% above normal rate. Moreover, studies have shown that gift card recipients are likely to spend more than what’s on the gift card during their shopping spree. Even if they don’t shop, you still profit from the card sale. This means they’re a win-win situation for companies, no matter how you look at it.
- Because companies that offer gift cards are more trusted, having a gift card program adds to your respectability. If you want to gain trust in your brand, get gift cards implemented quickly. Studies show that gift card programs bolster peoples’ trust in a company, regardless of the industry that the company is in.
The bottom line is that gift cards are popular for good reason – they work. If you want to start giving your clients the gift of a loyalty program or gift card program, now is the best time to do it. And, we’re the right company to have by your side while you put together the perfect program for your clients. If you’re ready to take that step, give us a call. We’re always here for you!