How to Use Gift Cards to Build Customer Loyalty

Gift cards are a convenient present for both the giver and recipient. However, it’s important to read the fine print and understand any additional policies that may apply.

A reliable gift card purchasing company should prioritize fast user 문화상품권현금화 log-ins, gift card code grouping and QR code scanning to make the process efficient for end users. It should also provide reporting on total sales and redemptions.

Customer Loyalty

Customer loyalty is your customers’ willingness to return to your business, interact with you on social media, talk about you to friends and family, and even pay a premium for your products. It’s why 77% of customers say they would recommend a brand to a friend after a positive experience and 46% of those loyal consumers will pay more for the product or service.

Loyalty programs that distribute points or rewards for a variety of actions encourage customer engagement and build loyalty. For example, TOMS’s perks program rewards members for purchasing products, providing feedback, and even donating to their charity partners.

Other popular loyalty solutions include tier-based systems, which rank your customers by their purchases and give them specific program benefits as they climb each tier. Or, a coalition program that partners with complementary businesses to provide discounts or offers to your customers. The possibilities are endless.

Sales

Adding gift cards to your sales funnel is an easy way to bring in additional revenue. Customers who buy with gift cards spend more than the amount on the card, and you can increase sales by offering a discount or reward for purchasing gift cards.

Gift cards are prepaid payment cards that can be used online or in store. They may be closed loop, only redeemable with a specific retailer, or open loop, which can be redeemed at any merchant that accepts the card as payment. You can offer gift cards as a payment option by using your existing point-of-sale system or by working with an independent vendor that offers a robust solution for ecommerce.

To get employees excited about selling gift cards, consider rewarding the employee who sells the most cards with a small prize like cash, a free shift or vacation days. Alternatively, you can encourage them to sell their unwanted cards through Facebook Marketplace or recognized gift card exchange websites.

Inventory Management

In order for gift cards to be effective as a revenue stream, businesses must understand and properly manage their inventory. This requires a solid system of tracking and recording transactions as well as providing customers with transparent terms and conditions that address issues like expiration, fees and balances.

A robust inventory management system can help businesses reduce inventory costs and improve operational efficiency by providing valuable data about consumer purchasing habits, including how often gift cards are purchased and what items are frequently bought with them. This data can help businesses make informed decisions about everything from product pricing to promotional strategies.

For example, an effective inventory management system should include a “par level” setting for each item, which sets the minimum amount of a given product that must be in stock at all times. When inventory drops below a par level, the system should notify the business so that new orders can be placed.

Marketing

As a brand-building marketing tool, gift cards are an excellent way to encourage repeat purchases and build customer loyalty. They are a great alternative to traditional retail purchases, providing recipients with the flexibility to choose products or services based on their individual needs and preferences.

To maximize sales, businesses should promote gift card offerings through their online marketing channels and in-store promotions. They can also partner with gift card malls in larger venues like grocery stores to reach more customers.

Email and text message marketing are both good channels to drive gift card sales. For example, retailers can use automated series that trigger after a customer abandons their cart or as a thank-you to high-volume customers.