Gift cards allow for the creation of strong relationships with customers, raising brand awareness, profits boosting and attracting new shoppers. As a shopper, there is no other better time to have a vanilla gift card balance than the holiday season.
Attracts New Customers
Lots of people may buy gift cards from the recipient’s preferred stores, restaurants or agencies but not everyone follows this rule. Others may prefer to surprise their loved ones by getting them gift cards for a new place. This opens up opportunities for all kinds of retailers.
For instance, a person who doesn’t know that your store exists, but receives a gift card, will most likely visit your website and locate your store with their loved ones. And if they end up satisfied with your services, you’re sure to have gained a long-term customer.
Boosts your Profits
Business owners record an upturn in the number of sales they make during holiday seasons. However, after the holiday, the slump in sales can be frustrating. With gift cards, customers are brought back to the store regardless of how strapped for cash they may be, they can still purchase with their gift cards.
Small Businesses Get the Opportunity to Compete with Larger Brands
Gift cards are now one of the most common forms of gifts, and most importantly, the one most demanded by gift recipients. However, the way gift cards work is continually changing.
Many larger card issuers such as Visa, MasterCard, and American Express offer prepaid gift cards (open-loop cards). This simply means that with a prepaid Visa card, shoppers can buy items from any retailer that accepts them. However, the preference has shifted to closed-loop cards. This allows small businesses to compete with larger brands and also present their approach to shoppers who want to get something, tangible, thoughtful and emotional to their giftees.