Have you ever considered making gift cards for your small business? It’s a great idea, but many business owners are unsure about the benefits of having custom gift cards for a small business.
Does it really increase revenue? Are gift cards better than gift certificates? How much does it cost to create these gift cards?
We got in touch with Shelley Hunter of Giftcards.com to find the answers. Here’s what Shelley shared with us about making gift cards for your small business.
3 Reasons to Consider Making Gift Cards for Your Small Business
Shelley says making gift cards for your small business is more convenient for customers, reduces fraud, and most importantly, increases revenue. Here are 5 reasons you should consider making gift cards for your small business.
1. Better than gift certificates in 3 ways
Gift cards beat out gift certificates in every category. Custom gift cards for small businesses are better than gift certificates in three specific ways:
1) More secure
Gift certificates can be stolen and used without incident. They can be filled out erroneously by employees for different dollar amounts than were paid for. They can even be copied or duplicated for future use. Gift certificates aren’t as secure as gift cards, which must be activated before they can be used and cannot be duplicated or copied.
2) More professional
We’ve all been to a small business that used gift certificates instead of gift cards. It leaves us with the impression that the company is very small or unprofessional. There’s nothing left to the imagination when gift certificates are used. But when gift cards are used, the customer is left with the impression that your business is larger than they thought. They’ll see your business as more professional.
3) More sales
When gift certificates are used in a small business, they can’t be displayed in plain sight – that’s a security issue, as certificates can be stolen, copied, tampered with, or duplicated. Without a visual reminder to pick one up at the register, many customers won’t inquire about a gift card or certificate and the potential sale is lost. But place your shiny, professional, custom gift cards at the register or advertise them online and poof! Your sales will increase simply by displaying the cards to your customers instead of relying on them to ask about them.
2. Compete with big box stores
Gift-giving is never easy, and that’s why many of us resort to buying gift cards when the time comes. We might hit up the gift card display at Wal-Mart, find one for a chain of restaurants or big box store they enjoy, and call it a day. The trouble is, we hate buying others gift cards for big box chains and giving general gift cards like Visa offers. It doesn’t feel personal and if it’s the thought that counts, these gift cards don’t count much.
But if you create custom gift cards for your small business, it adds a personal touch to what can be an impersonal gift option. It enables you to compete with the big box stores by making sure you have a convenient gift option for shoppers, too. Make your gift cards available for purchase online and in-store to reap the most benefits.
3. About 72% spend more than the card’s value
Finally, making gift cards for your small business is a smart consideration because people spend more money when they enter a store or website for which they have a gift card. While it may seem backward – after all, the cost of the card was already paid at the time of purchase – gift cards really do help businesses increase revenue.
A study by First Data found that 72% of gift card holders spent more than the gift card contained. Interestingly, gift cards seem to encourage more spending in consumers.
The study also found that:
- 25% bought an item they weren’t planning on buying
- 8% bought a more expensive item than they planned
- 3% purchased from a store or website they don’t normally shop at
Gift certificates are really just unsecured, unprofessional revenue limiters. Consider making gift cards for your small business. It could increase revenue, help your business look larger and more professional, appeal to anyone shopping for a gift, and enable you to compete with the big box stores. What’s not to like?
A big thanks to Shelley Hunter for her expertise and help putting this article together!