Benefits of Gift Card Programs for Your Business

4 Benefits of Implementing a Gift Card Program for Your Business

Are you feeling the crunch of cutthroat competition in your business? Have you been thinking about different ways to attract new customers while keeping your current customers happy and returning for more?

Customer loyalty is a beautiful thing, and the key to encouraging business growth and increasing revenue. But how do you accomplish this amid ongoing inflation, higher commodity prices, and interest rates? Fortunately, we have a solution: Implement a gift card program.

Imagine a magnetic force encouraging customers to choose where they spend their money, which businesses they support, and which brands they talk about. It is a strategic tool that attracts their attention while driving your brand's visibility, growth, and profits.

With more people prioritizing how they spend their money, gift cards offer a solution to build brand trust and loyalty that's hard to ignore. But if you're still uncertain about this marketing tool, keep reading. We'll walk you through four powerful benefits of starting a gift card program.

Gift Card Programs Ignite Sales

While it might seem surprising that a gift card program could have such a significant impact, convenience is the key to increased profits. Digital gift cards are an opportune and favorable option that customers can use with your brand, whether they are at home or on the go. Today, digital and physical gift cards are highly valued assets among today’s online consumers, with a majority using their smartphones or computers to shop online.

But it's not just about encouraging your customers to shop online. Gift cards feel less like cash and more like a gift. Research shows consumers tend to spend more when they shop using gift cards. Sixty-one percent of gift card consumers spend $31.75 more than the card's value, making their use even more profitable for your business.

Unveil Relationship Management

Want to reward customers for their loyalty? A robust gift card program is a fantastic option. With the right loyalty program, you'll keep customers coming back frequently. In fact, consumer loyalty programs have grown in popularity. Eighty-seven percent of shoppers belong to at least one loyalty program.

By offering a tangible incentive, gift card programs encourage customers' active participation in your brand. This personalized experience allows customers to choose the products and services they desire, further rewarding them for their repeat business.

To sum it up, a robust gift card program:

Builds customer loyalty
Strengthens customer engagement
Personalizes interactions
Fosters long-term customer relationships

A more rewarding way to shop.

Say hello to CashBack+, a customer benefit from Extraco Banks. Browse offers personalized to your favorite brands + hundreds more. Purchase a gift card in any amount, and use it to make your purchases. You'll receive instant cash back, up to 20% depending on the current offers listed.

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Gift Card Programs Help You Realize More Profits

Want even more proof that a gift card program can help your business increase profits? The secret lies within unused gift cards.

As a society, we're swamped with work, school, extracurricular activities, and more. So, it's little surprise that nearly half of American adults have one or more gift cards, vouchers, or store credits sitting around unused and often forgotten. Thus, a whopping $21 billion remains unused!

This accumulation of unused funds translates into "breakage" revenue and, by default, increases your business’s overall profitability.

Amplify Brand Awareness with Gift Card Programs

Another compelling benefit of a gift card program is its branding capabilities. Digital gift cards offer more opportunities to spread the word about your business compared to physical ones. Digital gift cards allow you to:

Expand your reach.
Encourage social media sharing.
Personalize your branding.
Open more email marketing opportunities.

A customer using your branded gift card becomes a walking billboard for your brand, generating curiosity, conversations, and potentially attracting more leads that can later convert into customers. Gift cards amplify brand awareness through the viral buzz of word-of-mouth marketing.

The Final Word

Starting a gift card program can be a game-changing experience for your business. These powerful pocket-sized digital tools drive sales, boost customer relationships, increase profits through breakage revenue, and amplify brand awareness. Offering gift cards not only allows customers to explore your company's products and services, but also empowers them to become brand advocates.

Considering the economic challenges we face today, a gift card program offers a solution to help your business thrive while also encouraging loyalty among existing customers and piquing the interest in those less familiar with your business.

Best of all, should you decide to establish a gift card program, our Cashback+ program will assist you in getting the word out. Extraco customers can now purchase digital gift cards directly from your business through their online banking, making it even more convenient for them to engage with your brand.

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