The Benefits of Implementing a Gift or Loyalty Card Program

Posted September 22, 2015

Implementing a new gift or loyalty card program can have significant material benefits to your business. Businesses have reported that gift cards deliver increased revenues, increased margins, interest from unredeemed balances, increased potential for future sales and a decrease in returned merchandise. Customers feel an attachment to the brand, which results in increased retention

Gift card offer the following benefits

Revenue increases. Uplift, or the amount that a customer spends over the amount of the gift card, averaged $23 for each card sold in 2008. Also, gift cards attract new customers, with 11% of recipients indicating that they never or rarely visit the issuing merchant’s locations

Higher margin sales. 31% of gift card receivers say they are more likely to buy a full-price item rather than an item on sale when using a gift card

Interest from unredeemed balances. You have possession of the dollars on the gift card from the dime that the card is purchased. By depositing the funds into an interest bearing account, you will be able to earn a return on your outstanding gift card balances

Future sales. The advertising effect of gift cards, whether they are in the possession of a customer or on the shelf in a gift card mall, can help keep your brand top of mind and can possibly lead to additional sales

Decreases in returned merchandise. According to the National Retail Federation, 8.8% of holiday gifts will be returned. Because gift card recipients choose their own gifts, gift cards may reduce returned merchandise and the high costs associated with handling returns

BarcodesInc is here to help

Barcodes, Inc. has a team of trained professionals who can walk you through a variety of options for your gift card and loyalty card needs. Full color imagery with a simplified way to track your customers, makes card programs a necessity this time of year. Give us a call to discuss ways to grow your business.

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