Whether you operate a restaurant or retail store, you likely accept credit cards. But are you offering gift cards to your customers? By 2026, the global gift card market is expected to exceed $750 billion in sales. In short, consumers are increasingly attracted to gift cards. With the rise in technology, especially on the mobile side, there is much more to gift cards today than just a plastic card!
With consumers spending more time purchasing online there is a new type of gift card in town… the digital kind! Consumers now have the ability to send personalized gift cards from home, work, or on the run through their phone and can schedule them to be sent at a particular date and time. Selling digital gift cards in your business is a great way to engage your customers and promote your online and in-store products.
Here are four reasons why selling digital gift cards will help you grow your bottom line:
Before we see how gift cards can increase foot traffic and increase your revenue, it’s important to understand that people generally prefer to both send and receive a gift card as a present or special occasion. As well as being a fun memory for both parties, gift cards also act as a great referral tool and allow your current customers to introduce your business to their sphere of influence.
Mobile gift cards give you the opportunity to add more value to a customer’s existing purchase. Beyond just surprising a friend or loved one with a prepaid purchase, customers can personalize their gift cards with digital messages, which are delivered to the recipient along with the gift card. This creates incredible brand awareness and a strong personal connection with your brand.
In many cases, people who receive a digital gift card to your store have rarely visited your location prior to receiving their gift. This creates a very cost-effective marketing strategy since your most loyal customers are actually paying to acquire new clients for you. You’ll also see a higher transactional value for new customers as they are more inclined to purchase more than the gift card’s value while shopping. On average, recipients purchase an additional 20% of the value of their gift card.
It’s important to give gift card recipients an incentive to opt-in to your contact database. This creates a great way to connect with your brand new customers, by promoting upcoming events or offers and convert them into loyal & repeat customers.
Ready to get started with digital gift cards? We can help!
Dodson Group Payment Solutions has been helping businesses save money and grow their businesses for over 15 years. The team at Dodson provides account reviewing of your current POS system and merchant service provider. We outline exactly where you can save money and we offer more features to gain and retain customers. For more information call Jeff Dodson at (616) 264-3160 or by visiting www.dodsonpos.com.
From the statewide roll out of Good for Michigan to celebrating Local First’s 15th Anniversary to kicking off our annual Fork Fest in the fall, 2018 was an exciting year for Local First, our members, and community partners.