7 ways gift cards for your business outperform other marketing strategies
Editor’s note: It’s hard to believe, but it’s that time of year again! Gift card order deadlines for the holiday season are quickly approaching. Vantiv Integrated Payments—a partner, and the payment processing provider for many SpeedLine customers—shared this helpful article about how gift cards outperform other marketing strategies. Keep reading to find out about the many advantages of a gift card program for your business.
Advertising, direct mail, coupons … there are many ways to get your customers’ attention. But what will ultimately motivate them to purchase your products or services? Adding gift cards to your marketing plan is a smart way to engage customers and keep them coming back. Consider these seven ways gift cards outperform other common marketing strategies:
1. Greater perceived value.
Unlike coupons, a gift card makes consumers feel like they have money to spend immediately. Plus, over half of consumers using a gift card will visit more than once to deplete their card, providing additional upsell opportunities.
2. Don’t cut into your profits.
By offering loyal customers pre-paid gift cards instead of coupons or other types of discounts, you’ll recoup your investment quickly – two out of three consumers spend nearly 40 percent more than the gift card’s value.
3. Generate revenue in advance of sales.
When you sell a gift card, you get paid in advance of any products or services rendered. You keep the cash until the card is redeemed. Not many marketing strategies will immediately improve cash flow like gift cards do.
4. Build brand awareness.
Gift cards are a cost-effective advertising vehicle, giving your business top-of-mind presence. They’re like a wallet-sized billboard reminding customers to visit you, and they cost a lot less than a life-size billboard.
5. More convenient.
Gift cards are more convenient than other types of promotional vehicles, including their paper counterparts. Plus, retailers who move from paper gift certificates to plastic gift cards typically see a 50 to 100 percent sales increase from their gift offering. Additionally, gift card programs like Vantiv’s allow merchants to offer gift cards online, and customers can design and personalize the cards with their own pictures.
6. Additional promotional opportunities.
Some gift card programs, like StoreCard from Vantiv, offer an expanded toolbox of promotional features including plastic-to-mobile gift card conversion, cash back rewards, social media sharing, and more. Promotional mailers with built-in gift cards are also available. The mailers’ instant savings compel recipients to visit your business and make a purchase.
7. Greater distribution.
Gift cards have innately more promotional power than marketing strategies like advertisements, which have a limited lifespan. Vantiv offers gift card distribution in Gift Card Malls, placing your cards alongside well-known brands in leading grocery, drug, and convenience stores. Spanning both in-store and online, Gift Card Malls highlight your brand to even more potential customers, helping drive visibility and sales.
Using gift cards as a marketing tool is easier when you work with an experienced partner who takes a consultative approach. Knowing your specific needs, goals and customers, as well as budget, can go a long way in creating and executing the right gift card program for your business. To find out more, contact Vantiv.
SpeedLine user? Find out more in this week’s issue of POS Quick Tips.