28.4.2022

Benefits of Gift Cards for Businesses

Written by Lauren Valensky

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Here at Epos Now, we have to give credit where credit is due – we believe that gift cards are one of the best business opportunities out there.

Whether you own a restaurant, retail store, or any other type of business, these convenient cards offer a number of bonuses that can boost your bottom line...but what exactly are these benefitting features?

What are gift cards?

Gift cards are prepaid cards that allow customers to purchase goods or services from your business. Typically offered in a range of denominations, they offer a fast payment method for customers, while also providing businesses with valuable marketing opportunities.

These cards are a great way to connect with your customers, and by offering them the opportunity to purchase them, you also create an easy and convenient way for your patrons to pay and show appreciation to their friends and family. The gift card business model is a win-win situation for both businesses and customers.

How to create gift cards for your business

Before we get into their benefits, let's briefly touch on how you can create gift cards for your business.

The most common methods include:

  • Ordering them from a gift card provider
  • Creating them yourself using a gift card template
  • Using a gift card app

While each of these methods has its pros and cons, creating gift cards for your business couldn't be easier, with Epos Now's complete solution.

With our state of the art software, you can also create an online gift card program that integrates with your POS system; Plus, with Epos Now, you can easily integrate all of your must-have apps, including gift card applications like Shopify - setting up your service on our  POS is a quick, easy and very affordable process.

VoucherCart: the gift that keeps on giving

If you want to crank up your card game, consider investing in a digital gift card solution like VoucherCart.

With VoucherCart, businesses can create and manage digital gift cards with ease. Customers can purchase these cards online and redeem them using a mobile app, making it easy and convenient for you both. With VoucherCart's advanced features, you can track transactions, generate detailed reports, and create targeted marketing campaigns to boost sales and drive customer engagement.

Epos Now is fully integrated with VoucherCart,  to let you connect with the leading digital gift card platform and start reaping the benefits today, straight from our App Store.

Epos Now solutions provide the latest marketing technologies. With integrations to boost local inventory advertising, loyalty programs, email and SMS customer mailing and more.

Epos Now can help you boost your retail or hospitality business from one, cloud-based system regardless of your business size.

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Benefits for businesses

Now that we've covered the basics, it's time to explore what these benefits actually are; Let's take a look at why gift cards are great for businesses:

Convenience and flexibility

Gift cards are an extremely convenient way for customers to make purchases, especially if you offer an online gift card option. They can be carried around in wallets, so they're always prepared for making a purchase, and can even be bought/redeemed physically or online, letting customers enjoy the luxury of browsing and purchasing items at their own pace, on their own time, without leaving the comfort of their homes.

What's more, gift cards for customers offer greater flexibility in how they spend. Since customers aren't not restricted to purchasing a specific item or service, (as they would be with product-specific coupons for instance), they can choose to make multiple smaller purchases until the balance is fully depleted, which transfers into repeat business.

Customer loyalty

Gift cards are also a great way to connect with your customers and create lasting relationships. By offering gift cards, and promotional cardholder loyalty programs, you give customers an incentive to keep coming back to your business.

What's more, by tracking customer purchase history (which is easy to do with gift cards), you can tailor your marketing campaigns and product offerings to better meet the needs and preferences of your target audience, further increasing customer loyalty.

Brand awareness

With the ability to target specific demographics and interests, gift cards are an excellent marketing tool that can help you increase brand awareness and reach new customers. When patrons purchase these cards, it's often with the intention to share them.

In addition, providing gift cards offers customers an easy way to spread the word about your business through word of mouth, while allowing you to create engaging marketing materials with a range of customisable logo and branding features - extending your exposure.

Attract new customers

Gift cards are a great way to attract new customers. By offering gift cards, you give potential customers an easy and risk-free way to try out your business. If they enjoy their experience, they're likely to come back and shop with you again.

Adding a discount to gift card purchases can also encourage potential customers to make a purchase, as they know that with the discount, their gift cards are essentially free.

Boost sales and revenue

By offering gift cards, you can send your sales through the roof - since customers who receive them, spend on average 20% more than the value of the card [1]. And since gift card balances can be used over time, these purchases are likely to lead to repeat business and boost your sales and revenue.

The use of gift cards can also be a great way to facilitate impulse buying. When customers are presented with an offer for a gift card purchase, they may be more likely to make an impulsive purchase they may not have otherwise made. And, not to anyone's surprise, customers who receive gift cards are more likely to visit your store than those who don't, so you can be sure that your brand will get some exposure.

In addition, gift cards can be a great way to boost sales during particularly slow periods. By offering special promotions and discounts on gift card purchases, you can entice customers to buy now and redeem later – helping to keep your cash flow steady throughout the year.

Improve customer service

Gift cards are a great tool for improving customer service and give customers a way to express themselves while providing valuable feedback about your products and services.

For example, if you encounter a customer who is unhappy with their purchase, you can offer a gift card as a goodwill gesture, which not only shows the customer that you're willing to make things right but also gives them the opportunity to try out your products or services again at no extra cost - a win-win overall.

Gift cards also give patrons the power to choose what they want, when they want it, making the customer service process more efficient, and perfect for pickier guests.

Streamline promotions and discounts

Gift cards can help simplify promotional campaigns and discount offers. For example, if you're running a holiday promotion, you can offer a discount on gift card purchases to entice customers to buy now and redeem later. Similarly, if you're looking to clear out seasonal inventory, you can offer a discount on current card balances to encourage customers to use them before their expiration date.

Improve cash flow

Gift cards can also simplify your accounting. When customers purchase gift cards, they prepay for their purchases, which can help you better manage your cash flow. 

This is especially useful if you have seasonal peaks and lows in your sales. By selling gift cards during peak periods, you can help to smooth out your cash flow throughout the year.

Give your business the gift of clarified CRM, with an award-winning POS system

Customer retention is the key to a successful business, and gift cards can take out some of the guesswork involved.  Epos Now offers state-of-the-art POS systems that fully integrate with automating business apps, to let you manage and customise your gift cards, vouchers and tickets with ease.

Help your retail or hospitality business streamline customer relationship management, with a point of sale system that offers tailored tools and insights to help your business achieve its goals:

  • Connect with market-leading CRM and loyalty apps through the Epos Now App Store
  • Create personalised loyalty programs to boost customer retention
  • Access detailed analytics and reports on online engagement, foot traffic, sales and trending products or services.
  • Save customer contact details and shopping preferences for targeted marketing.

If you want your business to benefit from bringing in gift cards, we'd love to hear from you!

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