Offering Your Own Gift Cards Can Increase Profit and Loyalty

Contrary to general belief, Gift Cards are not just for large national retailers anymore. Business of all sizes and consumers are realizing the benefit of offering their own gift cards. The concept of gift certificates has been around for some time. But, unlike gift certificates, a customer can recharge the gift card by putting additional amounts on the card over and over again.

Some benefits of a gift card include.

1. It is convenient. Consumers prefer to have a card rather than cash in their wallet or purses. Studies shows that consumers spend more money with plastic than with checks or cash
2. Improved cash flow. You get the benefit of having the cash from a gift card purchase today, while the actual usage (expense to you) will not occur till sometime in the future
3. And they return more frequently to those establishments that offer gift cards.
4. Any opportunity for fraud is reduced because the card is not activated until it is sold to the customer. You can easily track who sold the card and the time of the transaction.
5. Most importantly, a gift card can be easily accounted and there is not chargeback. You can easily track:
   how many cards sold
   number of cards in stock
   who sold the card
   card redemption and
   outstanding cards in circulation
   
6. National retailers have realized that customers spend more with a prepaid gift card, than with cash. It increases impulse spending which increases sales and improves customer loyalty. Your customers can purchase your gift cards as presents to others- especially if they like your service and what you provide.
7. A Gift and Loyalty card is an excellent tool to create and build your image, while separating yourself from your competition. Cost of implementing a gift card program is small compared to other promotions.
8. With all those benefits, the biggest is a term called, slippage which refers to the amount of money that a merchant retains when a gift card is not fully redeemed. This could be as much 4 - 8% of gift card sales to your bottom line. This is pure profit to the merchant as it is money that is never spent. Even if the customer recharges the card, there comes a time where some money is left on the gift card and it goes to you.
9. And, you can use gift cards as part of a program to incentivize your loyal customers to purchase more- like a rewards program similar to what airlines and other big businesses offer.

Why let the major merchants enjoy all the benefits of gift cards. Quickcash4biz has a wide range of gift/loyalty cards, and marketing experts to help you design a program that will increase both your profits and the loyalty of your customers- and attract new ones.