Why your Business Should Offer Gift and Loyalty Cards
No matter how big or small your business is, you should offer gift and loyalty cards to your customers. Now I know what you’re thinking, keeping track of all of these cards and loyalty points is going to be a nightmare! Luckily for you, there are plenty of ePayment systems that allow both you and your customers to keep track of your data online.
If you’re still on the fence, here are some reasons why you should offer these cards to your customers.
Customer Acquisition and Retention
A gift card goes much further than a word of mouth referral. It serves as a direct call to action to whomever is receiving the card. Not to mention the gift card was already paid for, which completely mitigates any risk to your cash flow.
According to a study about 90% of gift cards are used within the first 60 days of purchase. That means 9/10 gift cards you sell equates to a new customer within the next 60 days! That’s a pretty awesome customer acquisition cost.
Luckily for online retailers, the popular trend of e-gifting grew from $300 million in sales in 2012 to an estimated $17 Billion by the end of 2017. The reason why e-gifting has become so popular is because it’s taken proximity out of the equation. Not to mention consumers can now store all of their cards electronically on their digital wallet.
Once you get your customers in the door you can keep them coming back with loyalty and reward incentives. Remember, sales is all about making the customer feel special. By offering rewards and loyalty incentives, you will increase retention rates and overall customer satisfaction.
In fact, according to the Bond Loyalty Report, 70% of customers modify when/where they purchase from in order to maximize points and a staggering 81% are more likely to continue doing business with brands that offer loyalty programs. The facts don’t lie, if you want to keep your customers offer them rewards.
This is an obvious one. Of course offering gift and loyalty incentives will increase your overall cash flow. But by how much? Its estimated that 72% of customers will spend more than the value of their gift card. That means you aren’t only guaranteeing revenue generated from the value of the cards sold, you’re also earning off extra money spent when the cards are redeemed.
On the reward and loyalty side, you’re only giving away points when money is spent. For example, by the time a customer accumulates $100 worth of points odds are they’ve spent 10 if not 20 times that much at your store.
Branding and Marketing
Issuing these cards is a great way to increase overall brand awareness. Think about these cards as mini billboard’s that fit in your customer’s wallet. Now think about how many times an average person takes out and opens their wallet every day. Make sense?
Gift and Loyalty cards are an extremely inexpensive way to advertise. In fact, every time one of these cards is purchased your business is more than likely profiting from the sale. This may seem like a no-brainer, but plenty of businesses fail to utilize their gift and loyalty programs as advertising vehicles. Offer special deals on gift cards or bonus points for rewards, do everything in your power to get those cards in customer’s pockets!
If you aren’t already doing so, its about time your business offers these types of incentives. If you already are offering them but aren’t utilizing them properly, you should re-evaluate because you’re really missing out!