For small businesses, increasing the customer base and attracting new customers can be a challenge in a world dominated by large brand names. But a grocery store chain saw an opportunity in gift cards and has successfully used them to build brand awareness and increase revenue.
IGA and KJ–s Market are supermarkets that currently operate in rural areas of North Carolina, South Carolina and Georgia. Since 2006, they have been part of WorldPay–s Gift Card Program, through which they sell customized gift cards in their stores. Rick Geary, the Director of Marketing, sees the impact of gift cards every day as a result of their significant ability to attract new loyal customers and increase overall revenue.
Impact on new business
With new customers and stronger brand recognition, a small business is bound to see an increase in revenue. For IGA and KJ–s Market, Rick estimates that gift cards account for at least an additional $250,000 in sales each year. What–s even more astounding is that about 45% of their gift card recipients spend at least 20% more than the gift card–s value. Rick believes that when new customers spend their own money on top of the gift card's original value, they–re likely to become return customers.
“The gift card brings new customers into our store, but it–s the value-driven shopping experience we provide that keeps them coming back.”
Director of Marketing
Rick sees the highest gift card sales between October and December when many shoppers are purchasing gift cards as gift items. Rick notes that it–s not just consumers that are purchasing gift cards around the holidays, but that other businesses purchase gift cards to give to their employees.
A creative way to use gift cards and reach new customers
One of the most successful ways IGA and KJ–s Market utilize gift cards is through community events. IGA and KJ–s Market take advantage of every opportunity to donate customized gift cards to community gift baskets, as these could easily end up in the hands of a new customer – perhaps even someone who is a loyal patron of a competitor–s store. As Rick says, “That gift card is in somebody–s purse or wallet, and they might look at it 10 times before they–re able to use it. I call it repetitive recognition.” Having a store–s gift card in a customer–s possession acts as a
mini-billboard for that business and reminds the customer of that store every time they look at it.
IGA and KJ–s Market found greater success in taking advantage of the WorldPay Gift Card Program: a solution that allows them to reach new customers all year round.
The possibilities are infinite with WorldPay’s Gift Card Program
WorldPay offers both standard gift cards and custom gift cards to meet your business’s every need. With the holidays around the corner, there–s no better time to stock up.
To order gift cards and take advantage of our special promotional pricing, please contact your personal Account Executive or call Customer Care at 800.859.5965, Option 3.
In This Issue
- A Note From Tony Catalfano
- Featured Article
- Quick Tips
- Product Spotlight
- Success Story
- Small Business Saturday
- Industry Updates