November 15, 2023

Why Gift Cards Are a Great Option for Small Businesses

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Small Business Tips

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Gift cards are the most popular present for the holidays and special occasions all year long, and if you’re a small business, offering gift cards gives your customers a chance to give their loved ones a more unique (but still flexible) present. In this article, we’ll explore all the benefits gift cards can offer your small business. But first, let’s dive into the “how.”

How to make gift cards work for your small business

Getting started with gift cards is easy. You just need to choose a robust solution that handles the logistics—like sourcing the physical cards and making them communicate with your POS—and leaves you free to focus on your business.

If you already have an Electronic Payments merchant account, you can get free gift card processing through our eGiftSolutions^® service. This includes:

• Simple integration
• Reloadable, reusable gift cards
• Online reporting
• Plenty of card design options

Want a custom design that shows off your brand? No problem! Our in-house design team can make it happen, along with in-store marketing collateral to advertise your gift card service.

Once you’ve gotten started, you can check out our resources on increasing your gift card sales to make the most of your program.

9 benefits of selling gift cards as a small business

1. Make more, larger sales

According to First Data, the average consumer spends $59 more than the original value of their gift card, and when choosing a gift card, 33% of purchasers spend more than they would on a traditional gift. This means you’re selling more upfront and later on when the recipient returns to cash in their present.

2. Get an alternative to cash-back returns

Having gift cards on hand opens up a new strategy for returns at your store. With gift cards, you’ll have the choice to easily offer in-store credit rather than directly providing cash back, encouraging customers to make exchanges rather than take their money elsewhere.

3. Encourage repeat business

Do you always spend the total value of a gift card all at once? Most people don’t, and that means they’ll have extra incentive to return to your store multiple times, giving you more chances to catch their attention, build trust, and perhaps even get them to consider giving the gift of a visit to your store to someone else in the future.

4. Build brand loyalty

If you’re thinking about implementing a loyalty program using gift cards, you’re on track to build stronger brand loyalty.

5. Get ready-made marketing collateral

Though it may depend on the program you enroll in, many gift card solutions—including eGiftSolutions—offer collateral to help you market your brand and gift cards within your store. Think window decals, endcap displays, and in-store signage—all available to promote more sales through gift cards.

6. Be ready for the holidays

Gift cards are the top present for the holiday season, both for buying and receiving. Come December, gift-givers need to check off their lists. You probably know the feeling from personal experience—you have a whole set of people to find presents for, and gift cards are the fastest and easiest way to guarantee you get your loved one a gift that they’ll make good use of. Gift cards have value all year long, but if you don’t already have a gift card solution, enrolling in one before the holiday season is a must.

7. Welcome new business

Gift cards are great at getting new customers into your store since receiving free money is typically plenty of incentive to get someone in your doors and eager to look around. Many people who might not have ever known about your business will get swept in if they receive one of your gift cards, giving you another chance to win a loyal customer.

8. Get the potential for pure profit

Ideally, you’ll want your gift cards to get used so you can take advantage of the other benefits on this list, but it’s certainly an added bonus that any unused gift card is essentially pure profit for your business. Free money without losing any inventory, at little cost or effort to you, is an incredible deal.

9. Compete with larger stores

Running a small business means constantly trying to compete with large stores that have more resources and a larger footprint. Gift cards are one way to get an edge on these bigger businesses since they allow you to compete on convenience when it comes to gift-giving. Plus, small businesses like yours can even have an advantage over big chains when customers seek more personal, unique gift card options.

Get a QuickStart^SMwith eGiftSolutions^®

With so many advantages to offering gift cards, it’s time to get started! The easiest way—and a great option if you’re feeling pressed for time as the holidays approach—is with eGiftSolutions’ QuickStartSM program. Enroll to get eGiftSolutions’ free gift card processing, online reporting, and 24/7 technical support, along with the special QuickStart offer of 50 free pre-designed gift cards with no expiration date and shipping within four to five business days.

Get started now at eGiftSolutions.

800-966-5520 | www.electronicpayments.com