Small businesses everywhere are gearing up as the holiday season approaches for the busiest shopping months of the year. With shoppers looking for quick and versatile gift ideas, gift cards for small businesses have emerged as one of the most popular holiday items. Not only do they provide convenience to the customers, but they also provide massive benefits to small businesses. Gift cards are a win-win for both buyers and sellers, and from free marketing opportunities to additional revenue streams, there’s plenty to like about them.
In this post, we’ll talk about how gift cards help small businesses during the holidays and explore some creative ways to promote them.
Why Small Businesses Should Stock Up on Gift Cards for the Holidays
The most simple and powerful way to attract new customers and boost sales is with gift cards. They’re especially great for gifts during the holidays, as they’re ideal presents for those friends and family that are hard to shop for. Stocking up on gift cards for the holidays is more than just selling a product, it’s giving your customers the gift of flexibility. It’s especially handy when people are trying to manage a bunch of lists, gifts and schedules.
The main thing for small businesses is to have a lot of gift cards and put them out everywhere. Make sure you have your gift cards visible at checkout, on your website, and in any seasonal promotional materials. You’d be surprised at how gift cards help small businesses during the holidays by providing an easy, attractive option for last-minute shoppers.
The Benefits of Gift Cards for Small Businesses: Free Marketing in Every Gift
One of the best parts about gift cards for small businesses is that they’re essentially free advertising. When a customer buys a gift card, they could be bringing your business to someone new. This new customer would not have come into your store or visited your website if it weren’t for that gift card.
Gift cards are especially powerful because they have a personal endorsement from the giver. Gift cards for small businesses are given to people by their friends and family who really like the business they are giving the gift card to, so the gift feels more trusted and meaningful. That kind of word-of-mouth recommendation is priceless for small business. The more you introduce your brand to new customers, the better the chance you have of turning them into loyal patrons.
It’s a great idea to take this effect a step further by creating branded, visually pleasing gift card designs. These cards are mini billboards for your brand and guarantee that your business makes a good impression even before the gift card is redeemed.
Creative Ways to Sell Gift Cards for Small Businesses
One easy way to boost your gift card sales is to incorporate them into seasonal raffles, gift baskets, or holiday bundles. Here are a few creative ways to sell gift cards for small businesses this holiday season:
- Holiday Raffles: In store or online, host a holiday raffle in which customers can win a gift card. This can also get people excited about your gift cards and will increase your foot traffic or website visits. Likewise, many customers who have not won will end up buying a card.
- Gift Baskets or Bundles: Make gift baskets with small gift cards which include your store’s popular products. If you’re a salon, this works great for a “spa day” package, or if you sell gourmet treats, this works great for a “movie night” bundle. This card encourages people to return and explore what you offer.
- Buy One, Get One (BOGO): During the holiday season and in the days following Christmas, think of trying a “buy one, get one half off” promotion on the gift cards. For instance, customers purchase a $50 gift card and receive another $25 of the same to themselves or to gift to someone else.
This holiday season, add a personal touch to your gift baskets with gift cards for small businesses. They’re a meaningful way to support local shops and offer unique options for your loved ones.
Unredeemed Gift Cards: The Secret Revenue Boost for Small Businesses
Did you know that a lot of gift cards never get redeemed? Research found that a good chunk of gift cards for small businesses never get fully redeemed, and often never are, as recipients forget or gift cards go to waste. For small business owners, this means an immediate kick in revenue without having to order more inventory or add more service.
Extra revenue without additional expenses is provided by unused or partially redeemed gift cards, sometimes called ‘breakage’. During slower times after the holidays, when every little bit of money counts, this financial benefit is especially useful for small businesses.
This added revenue cushion is good, but keep in mind that the goal is still to provide a great experience to every customer who visits, whether or not they’re redeeming a gift card. Each visit is a chance to make a one-time gift card holder a regular customer.
Using Gift Cards as a Year-Round Marketing Strategy
Gift cards aren’t just for holiday sales, they’re a year-round marketing tool. Some people purchase gift cards as gifts during the holiday season, and people may still purchase gift cards for birthdays, anniversaries, graduations, and other celebrations even after the holiday season. If you make gift cards a regular part of your promotions, you’ll continue to get new customers all year long.
To keep gift cards top of mind, consider these strategies:
- Email Reminders: Seasonal emails like promoting gift cards and how they can be the perfect gift for any occasion.
- Social Media Promotion: Post photos on social media of your branded gift cards. Help customers show friends and family how much they would appreciate a card and how easy it is to pick one up.
- Incentives for Use: Challenge current customers to redeem their gift cards using seasonal or limited time discounts. For instance, you can give a small discount on the first-time purchase with a gift card and thus convert new customers into repeat buyers.
Ready to Start Selling Gift Cards for Your Small Business?
We make it easy for small businesses to offer gift cards at Card Systems, Inc. We’re here to help whether you are just getting started or stocking up for the busy holiday season. Our gift card solutions are easy to use, affordable and streamlined so you can provide your customers with what they need most—your service.
We can help you make gift cards a profitable part of your business this holiday season. Don’t wait, reach out today to learn more about how easy it is to get started!
