Every year over 90% of US consumers purchase or receive a gift card! In 2012, gift cards in the US were loaded with over $110 billion in value,1 so it’s not surprising that gift cards can be an effective way to:
- Increase your customer base – In the US, 41% of consumers tried a retail store, restaurant or hotel for the first time because they received a gift card for that business2
- Complement retention efforts – 72% of consumers who tried a business for the first time because they received a gift card returned to that business1
- Increase revenue – 70% of consumers will spend more than the value of the card1
Why jump on the gift card bandwagon?
Gift cards can help build brand visibility and customer loyalty. Whether standard or customized, a gift card in your customer’s wallet is like a tiny billboard that reminds cardholders of your business every time they see it.
For some businesses, offering reloadable cards that make it easy for everyday customers to use their cards to make purchases can help enhance customer loyalty and encourage repeat business. In addition, gift cards are more secure than paper certificates because they reduce the chance of being duplicated. Cards are also more durable and convenient for customers to keep in their wallets.
Following a few best practices can boost business
Gift cards are an inexpensive way to attract new customers and can more than pay for themselves through increased sales revenue. In addition, you can use them to reward customers and encourage them to come back. For example:
- Consider offering a special promotion where a customer can buy a $25 gift card for $20 when they purchase two or more at a time
- Reward frequent customers for their business by giving them a promotional gift card when they spend a minimum purchase amount
- Respond to customer complaints or experiences you deem unsatisfactory by offering them a gift card to help protect and restore the relationship and potentially encourage them to give your business another chance
- Use gift cards for store-credit merchandise returns to ensure repeat business from customers and limit your exposure to fraudulent returns
- Give small-value cards to organizations such as chambers of commerce, realtors, charities, etc. to expand your business’s exposure to new residents in the area
Be ready for the holiday season
Cards make great gift options at any time of the year, but the 2013 winter holiday shopping season will soon be upon us. If you’re not already promoting and selling your own gift cards, now is the time to consider them.
WorldPay’s Gift Card Program
WorldPay’s Gift Card Program is very simple to administer and easy to manage. It works on most credit card terminals and comes with an array of easy-to-use reporting tools to help you track card usage and customer spending.
With our special promotions, this is a great time to order your gift cards. Take advantage of special rates now through December 31st.
- For more information on how your business can benefit by offering gift cards, contact your personal Account Executive or WorldPay Customer Care at 800.859.5965, Option 3.
- If you already use our gift cards and want to take advantage of our promotional offer, contact WorldPay Customer Care at 800.859.5965, Option 3.
1 Source for gift card statistics: Partners.giftcards.com/statistics
2 Sources: NRF, 2011, BIGresearch, 2011, Global Prepaid Exchange, Card Commerce, Gives, 7th annual survey, Vecter Technology
In This Issue
- A Note From Tony Catalfano
- Featured Article
- Quick Tips
- Product Spotlight
- Success Story
- Small Business Saturday
- Industry Updates