6 reasons why your business should accept gift cards
No doubt about it, gift cards are a powerful revenue source– accounting for $100 billion in annual sales. If you are not yet offering gift cards as a payment type to your customers, you are missing out on a big opportunity to increase sales and grow your business. Let’s take a look at six reasons why your business should accept gift cards.
1. Increase traffic
Gift cards bring in more customers. In fact, every one gift card sold results in at least two customers – the person who purchased the card and the recipient of the card, who may also bring in a friend. In this way, gift cards have the potential to introduce twice as many new customers to your business.
2. Generate higher sales
Consumers shopping with gift cards are less price sensitive and more likely to pay full price. Since consumers think of gift cards as free money or a discount; most spend more than the value of the card. In fact, two out of three consumers paying with a gift card will spend 38 percent more.
3. Get cash upfront
When a gift card is purchased or reloaded, you keep the cash until the card is redeemed. This is money that can be used for payroll, to stock inventory, or take care of other operating expenses. And, depending on the laws of your state, you may be able to keep the earnings on cards that are not redeemed.
4. Keep more cash in your business
Unlike cash back for returns or dissatisfied customers, prepaid cards guarantee a return visit. You can even add additional funds on the card to show how much you value customer satisfaction. It’s a great way to incentivize your customer to try your business again.
5. Reduce fraud
Gift cards help reduce fraud associated with paper-based gift certificates which are easily duplicated. Plus, a custom branded gift card makes a better impression and has a higher perceived value than paper gift certificates. Retailers that upgrade to plastic gift cards typically see a significant increase in sales.
6. Build relationships
Some gift card solutions offer a lot more than just plastic cards. For example, Vantiv offers a comprehensive gift card solution that can be upgraded to include a loyalty program. In addition to rewarding customers for each purchase, Vantiv StoreCard allows customers to convert their plastic card to a digital card and pay using their smartphone.
There are many more reasons for your business to accept gift cards, but the bottom line is that they are a proven way to drive additional revenue. Don’t let another day go by without reaping all the benefits gift cards offer.
When you choose Vantiv for gift cards, you’ll have a wide selection of attractive pre-designed cards that can be printed with your logo. Or we can help you design your own custom cards to reflect your brand, your products, or anything you choose. Our affordable card packages make it easy to get started generating more revenue with gift cards. Simply give us a call and you’ll be up and running with a full-featured, user friendly gift card program in no time. Contact Vantiv today.