It doesn’t matter if you’re a well established business or just starting out, a gift card / loyalty card program will increase your profits, as well as customer loyalty.
Gone are the days when gift cards were thought of as a way of giving a gift without any thought. More and more people want the ability to choose something that they want, instead of the hassle of standing in line to return a gift that just isn’t right. With gift cards you offer your customers a way to give a gift that fits every time.
From the moment that card is given your future customer sees your business name every time they go in their wallet, reminding them to come visit you. When they come in chances are that they’re going to spend more than the value loaded onto the card. In most cases that card is used to offset the cost of a larger purchase and you’re going to benefit from that, especially if it’s a customer that would have made that purchase somewhere else.
The great thing about gift cards? They create an additional revenue source for your business! The cost of setting up a program is low and the ROI (Return On Investment) once value is loaded onto a card is excellent. What if the card is never used? Well, you’ve already been paid the value of that card, so it’s a profit. It’s also been shown in studies that a majority of the people that receive a gift card actually re-load them with additional value. You’re gaining a loyal customer with no extra effort!
Loyalty programs have been around for a very long time now. However the days of the business card with punches are long gone. Now consumers want something that isn’t going to get ruined by their wallets, or if they wash it by accident. They want something that’s durable and easy to use. With a loyalty card tied into a gift card you can offer that option. As customers use the card making purchases you can credit free merchandise, a discount off the next purchase, or even a dollar value. Even better, you can credit it right to the gift card side of your program. You will no longer have to worry that you’ll have unsatisfied customers because the card that was almost full ripped or got lost. If you have the customer in your data base, you can actually de-activate a lost card and issue a new one. Think of how many customers you’ll have that are happy and looking forward to the next time they visit your business!
It seems to me that gift and loyalty cards are a great thing for a business to invest in. For a minimal initial cost you’re getting a mini billboard, word of mouth advertising, and happy loyal customers. Isn’t that what every business strives for?