Selling gift cards can be a great way to increase your online business. This is especially true during the holiday season. If you have an effective gift card campaign running, you can really capitalize on it.
Allow Your Customers to Spend More Without Guilt
Buyers usually have a limit of how much money they are willing to spend on themselves. It is not a limit they consciously think of, but at some point they start to feel somewhat guilty. Let’s say someone’s personal limit is $200 a month on products they like personally. They might feel guilty buying $200 or more of products they like, but they might very well be willing to toss in another $200-$300 for Christmas presents for friends.
That is where you come in. You may already have that customer’s personal business, but by allowing him or her to take advantage of your gift cards program, you can ease their guilt over spending money by having them spend it on their friends instead.
Win a New Customer
Anytime someone buys a gift card, they are by definition buying it for someone else. That other person may not have ever heard of your business before. They might not have ever bought from your store if they hadn’t gotten this free gift card.
However, now that they have it, they are going to use it, and when they use it, you have a good chance of winning a new customer. In other words, selling gift cards is the equivalent of using the most effective “tell a friend” campaign in the world. You will have nearly a one hundred percent uptake rate because most people will use that free money.
Reach Completely Different Markets
Let’s say you generally target women age 30 to 35. Men and people in other age demographics generally have never heard of your business. Since the market is completely unproven, you have no plans of advertising there either.
Gift cards can break all those barriers. Don’t underestimate the massive range of people to whom your gift cards can end up being given. People buy gift cards for their clients, business associates, co-workers, friends, family and even their children. Through gift cards, you can open up completely new markets.
These are some of the many benefits of selling gift cards. If you are not utilizing gift cards in your business, you are definitely missing out on profits. The most important time to set up a gift card program is around the holiday season when people are more likely to buy and give away gift cards.
