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Six Reasons Why Gift Cards Are a Powerful Marketing Tool for Business

There are many different ways to market your business in the modern world. Few are as effective as setting up a gift card program for your enterprise. Many merchants are still overlooking the value of issuing gift cards. Discover six major reasons why gift cards are an extremely powerful marketing tool for businesses of all sizes and types

1. Gift Cards Are Easy to Display and Distribute

Gift CardOften merchandising efforts are large and time-consuming to setup. Sometimes designated staff must be hired to create elaborate displays. Then you need to find a suitable place at your business to show them. After all of that work, customers might not even pay attention to these costly displays. There is simpler way to attract attention to your business offerings. Display gift cards near cash registers or the front desk to encourage impulse purchases.

Gift cards are also inexpensive to distribute. Sending samples of your products can become expensive. Whether you forward them by mail or in-person, distributing samples may cost more than you anticipated. A small gift card can be tucked into a mailer or given out to key customers. The gift card lures people into your business establishment to buy something. In most instances, they buy more than the value of the gift card.

2. Boost Your Brand

Branding is crucial to make your business stand out from competitors. Fast food restaurants are all excellent examples of branding. Each one has a philosophy, logo and specialty items to whet the appetites of potential customers. When people think of a certain sandwich or see a sign, they suddenly feel hungry. Gift cards are a great way to increase brand awareness.

Each gift card bears your company name and logo. This makes it a viable marketing tool when people see them displayed, purchase them for personal use or give them as gifts. Shared gift cards continue to let more new customers know about your business brand. They will try out your offerings and could become ongoing customers in the future.

3. Bring New Customers to Your Business

The ultimate goal of any marketing strategy is to bring new customers to your business. Gift cards make this happen. People receive gift cards for holidays or special occasions. Some of these recipients may not be familiar with your business. They will become curious about what you have to offer, especially since they have free money to spend. This gives your company a golden opportunity to appeal to new customers.

Usually the people who give these gift certificates are current customers. They like what you have and want to share it with others. This is positive word-of-mouth about your business. The power of word-of-mouth advertising is priceless. People tend to trust companies recommended by friends, family and co-workers. This is an endorsement that holds a lot of weight.


4. Customize Your Promotional Efforts

Card SamplesGift cards are an excellent way to customize your promotional efforts. Go beyond branding and use gift cards for creative purposes. Some companies change the design of their gift cards to reflect certain holidays or promotions. Gift cards can also be distributed in lieu of coupons. Offer a free gift card for a minimal dollar amount. This can actually turn out to be less than giving out coupons for 20 percent off, especially when people make a large purchase. A gift card is provided in a pre-designated amount so you have greater control over the discount. No matter how much a customer spends, they get the face value of the gift card.

Another way to diversify your marketing approach is to offer a gift card with a promotional gift. Some people want to give more than a gift card itself. Add a large box with fancy wrapping to make the gift card more attractive. Include a gift card with a certain product or service. An example is enclosing a gift card in the pocket of a cotton robe sold at a spa or bath shop. This adds another layer of value to the gift and encourages the recipient to check out your business.

5. Minimize Fraud

Gift cards can be used to revamp your return policy. Often returns can become costly for retailers, especially when people attempt to commit fraud. The store must have a secure system in place to try to detect stolen merchandise or expired returns to people who are looking to get their hands on fast cash. Issuing a gift card for store credit instead of cash is an excellent solution. This deters people who are looking to make quick money or bring in items that are no longer valid for returns.

Another good reason to issue a gift card for returns is the money can only be used at your establishment. Rather than walking away with the cash, people must find another way to spend the value of the gift card at your store. Each purchase becomes a sure thing for your business. Remember to post your return policy clearly to avoid potential hassles.

6. Be Charitable

While gift cards are definitely an advantage to your business, they can be used to spread good will. This brings another level of respect to your branding efforts. Consider using gift card sales to support a local charity. People who are involved with this charity are likely to remember your business and choose you in the future. Customers will respect your involvement with neighborhood charities. You will also get free advertising from these charitable efforts.

A charitable promotion can be simple and easy to execute. Offer to donate a percentage of gift card proceeds to a charity of your choice. People who purchase gift cards will also be supporting a worthy cause. It could even be the way to get people to buy gift cards rather than merchandise as gifts.

Businesses of all sizes are discovering great ways to promote their offerings through gift cards. Whether you specialize in goods or services, a gift card can be the first step toward creating new and profitable customer relationships, Gift cards are one of the most budget-conscious ways to brand and promote your company.

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PO Box 202 • Irvington on Hudson, NY 10533 • Tel: 845-507-0220