Gift Cards are digital assets that are created to serve as an alternative and additional method of payment for items at a specific brand, company, restaurant, etc.
You might have seen certain businesses come out with their gift cards and be a bit confused about the essence or need for this. After reading this article, you would realize that this is an intentional and strategic act.
What Are The Benefits of Creating Gift Cards For Your Business?
In today’s world, businesses are looking for various means of staying relevant. One secret I need to let you in on is the fact that providing a good service or having an awesome product is not enough to keep a business afloat nowadays. To be one of the first names people look out for in your sector of business both locally and internationally, you need to do a lot more than simply create good products.
One of the sharpest resources that can help a business currently are gift cards, and let me tell you why.
1. Gift Cards Help Increase Sales
Incorporating this digital asset into your business means you are creating another item that can be purchased from your company asides from the product itself. For example, Starbucks which is popularly known for selling coffee made over 40% of its $29 billion revenue from its gift card sales in 2021.
2. They Improve Your Chances For Customer Retainership: Because gift cards only serve as money at their designated stores, when a customer buys a gift card, the business is almost certain they would be back. Because the only way the customer can redeem that gift card is at their brand. Unless they resell it for cash.
3. They are Great For Marketing: Gift cards help increase the public image and awareness of a business. A typical physical gift card has the name and logo of the brand boldly inscribed on them. The more people purchase this gift card, the wider your audience becomes. Because people love free things, you can also give away some branded gift cards as a means to attract new customers and retain existing ones.
4 It Boosts Profitability: According to CBS News, over $ 2 billion worth of gift cards go unused each year. from a business perspective, this would come as good news. “How ?” you may ask.
For example, a customer buys a $200 Sephora gift card from the platform. And does not redeem it until it expires. This means Sephora made a full profit from items that were not even sold.
If you are a business owner looking for more innovative ways to improve your business’s growth, you should consider incorporating gift cards into your company.