Expanding a business is a dream for everyone. The problem remains: How?
One of the easiest ways is by using Gift Cards. They can be used to attract new customers, give discounts, can be used in case of refunds instead of cash, and a lot more effective ways. It’s convenient to use and can be modified according to your wish.
Following are some ways in which Gift cards can benefit your business –
1. Refer and Earn
This is the most widely used promotion technique. It can boost your business rapidly. In this, you can set conditions that are beneficial to you.
For example, If a customer refers someone to purchase some minimum value, he’ll be rewarded in the form of gift cards, while the newbie also gets discounts.
In this way, the customer will try to make as many referrals as possible to earn more rewards, while gaining you new customers and your increasing sales at the same time. It’s a win-win situation for all.
2. Alternative To Cash Refunds
Sometimes situations arise wherein customers want to return their products or exchange them for cheaper ones. In such cases, you will suffer losses if you return the original value in cash. Gift cards come in handy in these times.
Instead of giving them money, you can present them with gift cards of the same amount. In this way, they are bound to make a purchase again, thus profiting your business.
3. Stock Clearance
Everyone has certain products which are difficult to sell. It may be outdated or overpriced now compared to when it was launched, thus making it hard to sell. To sell it, you may have to underprice it, which leads to loss severely.
One way to overcome this is Gift cards, according to PrizeHog.net. Instead of substantial discounts, provide customers with cashback in the form of gift cards. Suppose you need to sell a product at half its original value; give gift cards for the same.
The customer is sure to be delighted, and there are chances of him using the gift cards to make a purchase again. Or if a customer makes a regular purchase, give them gift cards of lucrative values limited to the non-selling goods.
Seeing massive discounts may improve the possibility of selling such products.
4. Discounts In The Form Of Vouchers
Everyone wants to make as much profit as possible. But some customers will keep on bargaining, which results in a decline in profit margin. Gift cards are the best alternative here. You can give them gift cards of some value instead of actual discounts.
Be sure to put an expiry date and a minimum value. In this way, there are chances of the customer making a purchase again, which is profitable. In case he decides not to buy again, you will at least save money which would have been lost in the form of a discount. You are bound to make a profit either way.
Marketing is the key to success. The more you promote yourself, the better are the chances for rapid growth. Advertising is a prominent way of promoting, but do you know, you can use gift cards for the same.
Instead of spending a fortune on advertisements, use the same amount as discounts, cashback, special offers, all in the form of gift cards. Make the customer happy, and they will use your products over and over again and will refer to others too.
6. Building Customer Relations
People love to try new places. But if they are satisfied, they’ll always stick to one. Customer satisfaction should be the primary objective of any business. One way is by providing them with the best products or services. The other one is by rewarding them for continued usage. Gift cards can be used as rewards.
Regular customers can be given privileged offers via Gift cards for their loyalty. This will improve the chances of them reusing your products. In case of faults or customer dissatisfaction, giving them Gift cards would likely increase the probability of using the products again for a discounted price.
7. Customer Acquisition
Increasing the customer base is a dream for every business. More customers mean more profits. The problem is how to attract them. The easiest way is to provide them with discounts and special offers.
This can be done using Gift cards. First-time customers can be supplied with Gift cards, which can later be redeemed. Or maybe run a promotional event, where gift cards are distributed randomly, and people bringing them could avail discounts or special offers.
8. Retention of Existing Customers
Offers and gift cards always attract customers. It not only helps in getting new customers but also helps in the retention of existing customers.
Some companies provide membership for customers, after which customers can enjoy extra privileges and more discounted offers or vouchers than non-members, which helps customers build trust in the company and its product, and customers eagerly wait for such offers and gift cards.
For example, some company sends a gift to the members on their birthday. After such proposals, the customers enjoy engaging in the company. Giving a gift or gift voucher helps the establishment earn a more significant profit than otherwise, as their sales of other services increase with customer purchase.
To obtain such coupons, customers tend to purchase more items, which turns out beneficial for the business.
9. Get In Touch With Customers Directly
As said earlier, some businesses provide membership to customers to enjoy extra privileges; this idea helps the company get in touch with customers directly. It also helps the company to update the customer about recent deals and offers through emails and SMS.
This helps in diverting significant customer traffic for such offers and gift cards, increasing the sales turning it to be profitable for the business. Nowadays, those companies giving these gift cards make a database of clients.
The vouchers they issue on the value of the immediate purchases help the client to purchase goods next time within the specified period in the future. Thereby those clients tend to visit the establishment several times.
Due to all this scheme, the non-prospective buyer falls prey to making more purchases, which helps the establishments increase their turnover and net profit.
10. Exemption Of Income Tax
The issue of the gift voucher is a sales promotion activity. The discount that is provided to the clients thus becomes expenditure for the company. As a result, the company’s gross profit does not increase, and the amount of discount allowed is directly allowed to be deducted as an expenditure in profit and loss account.
People love to shop when they get special offers or discounts. Not only Gift cards solve the problem of discounting or, but it can also be used as cashback and are useful in many other ways as well.
Nowadays, people are gifting Gift cards instead of presents, as it provides the receiver with the feasibility of choosing their presents. Thus, promotions through Gift cards are a guaranteed way to expand your business. Gift cards becoming a trend, be sure to use them wisely and see your business grow.