6 Other Uses for Gift Cards in Your Business (Apart from to Sell)
When you think about using gift cards in your business, the first thing that probably springs to mind is selling them to customers at key events throughout the year. However, their use is much broader when you stop thinking about them only as a product to sell and start thinking about them more holistically as a tool to grow your business.
Here are six other ways to use gift cards in your business without ever selling one!
1. Returns and refunds
When a customer makes a return or asks for a refund, 99% of the time, it’s not because they don’t like your business anymore. It’s just that the particular product wasn’t for them. If this is the case and the customer doesn’t insist on a cash refund, take this opportunity to offer a gift card instead. The customer will be just as happy if they would have come back anyway, and it’s a win for you not having to return the cash.
Competitions are an excellent way to raise awareness of your business. They get you in front of new and existing customers alike. Gift cards are the perfect option for competition prizes rather than a specific product. They have a universal appeal allowing the winner to choose based on their preferences. And in retail specifically, the added benefit of a gift card competition prize is that the winner will need to shop with you and browse what you have to offer. Giving away a specific product, they may never actually visit your store.
3. Charity and not-for-profit support
When it comes to giving to local charities and community groups, gift cards are ideal, as your donation can be used in multiple ways. For example, the charity can avail of the gift card themselves ‘internally’, like rewarding volunteers or use it in their fundraising efforts as a raffle prize. So not only are gift cards tax-deductible donations, they are a great way to support a good cause and improve your corporate social responsibility credentials.
4. Sales incentives
Want to boost sales of a product? Or need to get rid of a particular product line but can’t reduce the price any further? Then, try offering a gift card as a sales incentive. For example, ‘Buy X product and get a €10 voucher’ will help get a product sold while also getting a gift card into the hands of a customer to encourage them to come back and spend more.
5. Staff perk scheme
You’re only as strong as the team around you, so show them some love with a gift card to spend where they work. This approach supports you in developing your team into brand advocates for your business while rewarding them at the same time.
6. Customer rewards and appreciation
It would be remiss for us to complete any list of other uses for gift cards in your business without discussing how you can use them to reward customer loyalty. For loyalty leaders, the advantages of customer loyalty result in revenue growth roughly 2.5x as fast as other companies in their industries, so encouraging loyalty among your customers is a must if you are serious about growth.