There are many ways to gain your customer’s attention. You can use direct mail, advertisements or coupons. However, those things will not motivate a customer to make a purchase or use your services. If you use gift cards as part of your marketing strategy, they can become a great way to engage your customer and make them come back. Here are seven ways gift cards can outperform your regular marketing strategies.
A Gift Card Has a Greater Perceived Value
Gift cards, unlike coupons, give consumers the perception of having money to spend. More than half of the consumers who use gift cards will need to return more than once to deplete their cards. This will give you additional upsell opportunities.
A Gift Card Does Not Cut into Your Profits
If you offer loyal customers a pre-paid gift card, instead of a discount or coupon, you can recoup your investment quickly. Approximately 2 out of 3 gift card holders spend almost 40 percent more than the value of the gift card.
A Gift Card Can Generate Revenue In Advance of Sales
A gift card is paid in advance of the product or service being rendered. You have the cash until the consumer redeems the card. There are not many marketing strategies that can improve a business’ cash flow as well as a gift card program.
A Gift Card Can Build Brand Awareness
A gift card is a cost-effective advertising tool. It can give your business a top-of-the-mind presence. A gift card is a wall-sized billboard. Your customer will be reminded of your business and compelled to visit your store. Also, they cost much less than a full-sized billboard.
A Gift Card is More Convenient
A gift card is easier to use than any other type of promotional tool including paper gift certificates. Retailers who move from paper gift certificates to plastic gift cards can realize a 50 to 100 percent increase in sales from their gift offerings. In addition, a gift card program like Vantiv’s lets a merchant offer their gift cards online, and customers are able to design and personalize the gift card using their own pictures.
A Gift Card Offers Additional Promotional Opportunities
With some gift card programs, like the StoreCard program from Vantiv, a business is provided with a number of promotional features including plastic to mobile card conversion, social media sharing, cash back rewards and more. They can also create promotional mailers that include built-in-gift cards. These mailer’s offer instant savings that can compel a recipient to visit your business and make a purchase.
A Gift Card Offers Greater Distribution
A gift card has more promotional power than many other marketing strategies. Techniques like advertisements have limited lifespan. Gift card programs like Ventiv, offers distribution in Gift Card Malls where your custom gift card will be placed alongside known brands in leading convenience, drug stores, and grocery stores. Gift Card Malls are available online and in-store and can highlight your brand, offering you exposure to more potential customers, helping to drive sales and visibility of your brand.
If you use gift cards as a marketing tool, you will find it best to work with an experienced partner who is able to take a consultative approach. They can help you create and execute a gift card program that will be tailored to your business’ specific goals, needs and customers.