As a growing number of businesses struggle to stay afloat in the wake of the COVID-19 crisis, consumers everywhere are looking for ways to support their favorite small businesses. From retail stores to restaurants, gift cards are one of the best ways to quickly inject cash flow into your business. They’re also one of the top ways to drive loyalty.
Gift cards have been popular for quite some time, but you would be surprised at the number of businesses we talk to that don’t offer them. That’s why if you do not currently offer gift cards, there has never been a better time. Offering gift cards is a great way to help fund your business during slow times, such as in today’s uncertain economic environment.
Gift cards are a simple, effective way to keep your customers engaged, even if COVID-19 has forced you to temporarily close your doors. They give new and returning customers something to look forward to, such as when the COVID-19 situation eases up and consumers are once again able to freely dine and shop at their favorite businesses.
In addition to providing what is essentially an interest-free loan, gift cards offer a few other financial advantages. For example, research has proved time and time again that consumers typically spend more than the face value of the card. Additionally, according to the Mercator Advisory Group, up to $3 billion worth of gift cards goes unused each year. This means any unused funds directly benefit your business.
As you’re evaluating gift card programs from different companies, be sure to look for one that has low minimums. The last thing you need right now is a program that forces you to stock up during these uncertain times. Gift cards are a convenient way to offer and manage store credit to your customers. Just make sure they work seamlessly with your credit card terminal and point-of-sale system.
If you’re interested in learning more about how gift cards can drive your cash flow, we’re here to help.
I have also compiled a list of ideas to help you market your gift card program. Read our tips and learn how to market your program.