Your Business Should Be Offering Gift Cards and Here's Why

In today's competitive market, small businesses continually seek ways to attract and retain their ideal customers. One small but effective way to do so is to offer gift cards. When a small business offers gift cards, it not only provides its customers with convenience and flexibility but also benefits the business! 

Below, we'll dive into some advantages of gift card sales for small business owners. 

1. Gift Cards Boost Sales

When using a gift card for a purchase, customers are more likely to spend more than the gift card's value. Research shows that 65% of gift card users will spend 38% more than the amount on the gift card! 

2. Gift Cards Improve Cash Flow 

Gift cards provide small businesses with immediate revenue. When customers purchase a gift card, they pay upfront, providing the business with cash before any products or services are purchased. This boost in revenue flow can be especially beneficial during a slow season or when a business needs to invest in itself. 

3. Gift Cards Attract New Customers 

Because gift cards are mainly purchased as gifts, they allow businesses to gain new customers. Gift cards give the recipient a chance to check out new places. If it's a business the recipient is familiar with, the gift giver may have been newly introduced to a business they may have yet to seek out. 

4. Gift Cards Build Brand Awareness

Gift cards, especially branded gift cards, are tiny billboards for small businesses. When customers carry a gift card, they are constantly reminded of the brand and slowly become more familiar with it. 

5. Gift Cards Reduce Returns & Refunds 

Gift cards allow customers to choose the products and services they want, making them more likely to be satisfied with their purchase. Customer satisfaction reduces the need for returns and exchanges, streamlining business operations. 

Small businesses can unlock another opportunity to drive growth and increase customer satisfaction by offering gift cards. It's a small but effective way to succeed in a competitive market, boost revenue, and expand market reach.