Gift Card and Loyalty Programs
Low cost but highly profitable, Gift Card or Rewards Program will improve your bottom line.
Gift Cards and Loyalty Programs for Your Business
If you’re looking for ways to increase retail sales during Coronavirus, offering Gift Cards and Loyalty Programs can be an excellent addition to your small business marketing strategy. They can not only increase profit margins, but can help generate a closer and more consistent relationship with your customers in an up or down market.
While there may seem to be obvious, “sentimental” benefits to a gift card, there are several financial benefits to be aware of. Primarily, customers who use gift cards spend 20-50% more than customers paying with cash or credit card. They use the gifted amount as a figurative store credit so the $50 gift card can easily be a $75 purchase.
Fewer Returns with Gift Cards
Gift cards help reduce the number of returns because customers are more likely to purchase an item they want, rather than with a gift which can often be a guess at best. With fewer returns, you’ll save on restocking costs and/or having to sell used merchandise.
Unused Gift Cards
Many gift cards go unused or are only partly redeemed with the unused portion becoming pure profit. You can expect about 10-20% of your gift card credits to go unused. The typical total of unused gift cards in the US is about $47,000,000,000 per year so there’s plenty to go around.
You’ll Be Sitting on Cash
From the time a gift card is purchased until it is redeemed the money is in the bank improving your cashflow or generating interest. This is similar to a no-interest credit line with customers lending you the money.
Gift Buyers Prefer Gift Cards
With the increase of online shopping and easy access to gift cards, it’s easier by the day to offer a gift cards for a special occasion. This enables shoppers to get the gifts that they want and are more likely to keep. It’s also far easier to just click and send a gift card, which can be redeemed instantly.
Here’s some key facts about gift cards
- 67% of consumers will buy a gift card for the holidays
- 81% buy them for birthdays.
- Merchants who sell gift cards rather than gift certificates see 50-100% more gift sales
Loyalty Programs
Twenty percent of your customers provide you with 80% of your revenue. Building a closer and more interactive relationship with your customers via Loyalty Programs and/or Couponing are a key to maintaining and even improving that ratio.
Loyalty Programs for your Business
Loyalty programs can be unique, custom tailored and designed specifically for your business. Rather than straight couponing, which can bring in one-time customers, Rewards and Loyalty Programs can assist in building a dynamic relationship with your customers where you reward them for “good behavior.”
It’s also a mutually beneficial relationship – 72% of surveyed customers who are loyal to a store want to be sent frequent offers, coupons, or promotions.
Additionally, loyal customers are 85% more likely to recommend your store to a new customer, and the more customers love and trust your brand and store, the more loyal they become.
eCommerce Loyalty Programs
eCommerce Loyalty Programs are easy to implement and manage, and typically require a simply plugin or add-on to your online store. They can be fully integrated into your customer database and run closely or in tandem with your eMail marketing programs.
A “Drip” marketing campaign, for example, can send emails if a customer hasn’t made a recent purchase. A coupon or loyalty offer can be made to re-engage the customer – and after the purchase they can receive loyalty points towards their next purchase. In fact, you can micro-target or even individually target customers with loyalty bonuses, one-time coupons or even offer deals on their most purchased items.
How to Set Up Gift Card and Loyalty Programs
The best way to set up your Gift Card and Loyalty Programs is by working with a trusted payment processing agent to build your systems. You’ll find solutions that are custom tailored to your business and created with awareness of your bottom line and processing costs. In fact, a properly set up Gift and Loyalty program can be low cost but high reward, and you’re invited to contact us to learn more about our programs.
LEARN MORE – GET A QUOTE
Contact Bankcard Brokers to learn more about Gift Cards, Loyalty Programs or any other merchant solutions.
Gift Cards and Loyalty Programs for Your Business
If you’re looking for ways to increase retail sales during Coronavirus, offering Gift Cards and Loyalty Programs can be an excellent addition to your small business marketing strategy. They can not only increase profit margins, but can help generate a closer and more consistent relationship with your customers in an up or down market.
While there may seem to be obvious, “sentimental” benefits to a gift card, there are several financial benefits to be aware of. Primarily, customers who use gift cards spend 20-50% more than customers paying with cash or credit card. They use the gifted amount as a figurative store credit so the $50 gift card can easily be a $75 purchase.
Fewer Returns with Gift Cards
Gift cards help reduce the number of returns because customers are more likely to purchase an item they want, rather than with a gift which can often be a guess at best. With fewer returns, you’ll save on restocking costs and/or having to sell used merchandise.
Unused Gift Cards
Many gift cards go unused or are only partly redeemed with the unused portion becoming pure profit. You can expect about 10-20% of your gift card credits to go unused. The typical total of unused gift cards in the US is about $47,000,000,000 per year so there’s plenty to go around.
You’ll Be Sitting on Cash
From the time a gift card is purchased until it is redeemed the money is in the bank improving your cashflow or generating interest. This is similar to a no-interest credit line with customers lending you the money.
Gift Buyers Prefer Gift Cards
With the increase of online shopping and easy access to gift cards, it’s easier by the day to offer a gift cards for a special occasion. This enables shoppers to get the gifts that they want and are more likely to keep. It’s also far easier to just click and send a gift card, which can be redeemed instantly.
Here’s some key facts about gift cards
- 67% of consumers will buy a gift card for the holidays
- 81% buy them for birthdays.
- Merchants who sell gift cards rather than gift certificates see 50-100% more gift sales
Loyalty Programs
Twenty percent of your customers provide you with 80% of your revenue. Building a closer and more interactive relationship with your customers via Loyalty Programs and/or Couponing are a key to maintaining and even improving that ratio.
Loyalty Programs for your Business
Loyalty programs can be unique, custom tailored and designed specifically for your business. Rather than straight couponing, which can bring in one-time customers, Rewards and Loyalty Programs can assist in building a dynamic relationship with your customers where you reward them for “good behavior.”
It’s also a mutually beneficial relationship – 72% of surveyed customers who are loyal to a store want to be sent frequent offers, coupons, or promotions.
Additionally, loyal customers are 85% more likely to recommend your store to a new customer, and the more customers love and trust your brand and store, the more loyal they become.
eCommerce Loyalty Programs
eCommerce Loyalty Programs are easy to implement and manage, and typically require a simply plugin or add-on to your online store. They can be fully integrated into your customer database and run closely or in tandem with your eMail marketing programs.
A “Drip” marketing campaign, for example, can send emails if a customer hasn’t made a recent purchase. A coupon or loyalty offer can be made to re-engage the customer – and after the purchase they can receive loyalty points towards their next purchase. In fact, you can micro-target or even individually target customers with loyalty bonuses, one-time coupons or even offer deals on their most purchased items.
How to Set Up Gift Card and Loyalty Programs
The best way to set up your Gift Card and Loyalty Programs is by working with a trusted payment processing agent to build your systems. You’ll find solutions that are custom tailored to your business and created with awareness of your bottom line and processing costs. In fact, a properly set up Gift and Loyalty program can be low cost but high reward, and you’re invited to contact us to learn more about our programs.
LEARN MORE – GET A QUOTE
Contact Bankcard Brokers to learn more about Gift Cards, Loyalty Programs or any other merchant solutions.