Attracts new customers
Gift cards are highly effective at attracting the type of customers that wouldn’t normally visit a particular business or service. With essential free cash in their hand, they are more likely to look around a shop and buy something that is needed or appeals to their interests. Plus, for the customers that found the shop to be interesting, they are more likely to return as a repeat customer.
Greater brand awareness
Any gift cards created for a shop or company will be given a unique design that matches the particular brand and logo. This makes a very useful marketing tool that is often kept in the customer’s mind, especially by those that store the cards in their purse or wallet. As more shoppers buy this type of gift to present to family or friends on holidays or birthdays, the brand will continue to be passed to more and more potential new customers.
Plus, they can be designed in unique packaging or customization options to fully tailor the marketing programs in an effort to maximize the perceived value.
Gift cards are bought at a specific value, but there are plenty of customers that go on to spend more on the higher priced items. They are a great incentive to get customers in the store and browsing at the available merchandise. Once the customers start to get interested in the products, there is a real change of them spending actual cash on top of the value of the card. Even if a product is only slightly more expensive than the value of the card, it still helps to increase sales and leaves a customer satisfied.