Last Updated on Dec 20, 2019 by James W
There comes that time when you want to get your loved ones gifts to celebrate their graduations, promotions, newlyweds and stuff like that.
You do not want to risk buying something that has fallen out of favor. And cash may not be the best option to go for as it’s always impersonal.
You will always find some relative or friend who is going to get you random goods that won’t bode well with everyone. But fortunately, you find that some people look for much better options that suit all parties. And gift cards do the trick.
Claire’s Gift Card Balance Check report that gift cards are all-rounded especially when it comes to saving yourself and loved ones the embarrassments of gifting silly gifts. Plus, sellers can now stretch their bottom lines and strive to gain more consumers with their retail gift card programs.
Today, businesses have started gift card programs that have proved to be quite effective especially towards improving the sale of gift cards and other forms of gifts to consumers.
To get a better feel of how gift cards have transformed businesses, you can look at its overall performance through the years. In as much as gift card purchases or their uses aren’t always directly tied to holidays, their sales flourish especially through November and December seasons.
Studies even reveal that over 56% of all shoppers planned to purchase gift cards in the 2016 holiday seasons. Plus, the same research can also work to highlight how much profits gift cards can bring during the holidays.
Gift card programs can be a serious boost for retail businesses. Today, you can expect each holiday shopper to purchase three or more gift cards on average.
With each gift card averaging $46. So, you can only imagine how much profit businesses can make indulging in this type of business.
So, if you have not yet ventured in the retail gift card program and made all the right moods, you will have hit the jackpot regarding this great revenue source.
Starting a retail gift card program
As a business, you should note that implementing gift cards into your retail store doesn’t require you to have some crazy scheme to be successful. If anything, it’s as easy as we are about to discuss with you in this article.
- Acquire the physical gift cards
By this, you can order to get actual plastic gift cards from their providers depending on the Point of Sale (POS) system. You can always purchase the physical gift cards directly from the vendors who sell them or partner with 3rd party suppliers to get you the actual gift cards.
In some instances, it may be necessary for you to contact the card supplier yourself to see how you can acquire the gift cards. Either way, you need to find the best contact method for reaching the appropriate party to get you the cards.
Then you can order for standard or customized gift card designs plus the total number you wish to order then place your order. Remember, gift cards double as a boost marketing tool for your business. By such, it is, therefore, a great idea to also include your business logo, name, and contact info to market it.
- Also, when looking to order gift cards, do so in bulk. You realize that most card providers offer clients who buy in bulk discounts on prices for each card.Input gift cards into your POS system
The process of inputting the cards into your system also varies just like the ordering system. The variation comes about from your POS provider. When looking to store information on the gift cards, you can consider these two main options:
- Cards with magnetic strips
For these cards, you find that each magnetic stripe is its own identifier. Therefore, all you need to do is swipe it initially and then input the amount that’s purchased for the card into your system. Then, the POS works to automatically deduct the balance from the gift card each time its owner swipes it until it’s depleted.
- Cards with barcodes
Some gift cards have unique account numbers to each barcode. Here, you can record the information of the original card purchasers, and the amount links it to the account number.
Therefore, every time the cardholder swipes the card, the purchase amount is automatically deducted from the amount on the card until it reaches $0. And after it’s fully depleted, the cardholders can reload the cards if they wish to and continue using them.
- Market and advertise your new gift card option
This is essentially the fun part of the whole process. There are multiple strategies that you can use to debut gift cards for your business. Most businesses offer various incentives and sales on their cards that work to get customers rushing into your store and spend more than before.
It may seem like you are giving away too much capital. However, it is essential to see it as more of a long-term investment. Look at the bigger picture in this case.
- Reap the rewards
If done right, gift cards can reap you a lot of rewards. Essentially, the whole process works in three primary ways which include:
- Bringing in new customers
- Leveraging store and brand advocates
- Capturing the difference
How to start a gift card program
Having all this information about how you can start a gift card program for your business, what do you do next?
Well, if you don’t already have a good POS system set, then this needs to be your first step. Look for a team that has dedicated POS software advisors who work to provide you with the best system for your business. Think of it as a quick questionnaire to help you get the ball rolling.
But if you already have a good POS system in place, then you can reach out to the card vendor representatives to determine the next best course of action to take.Final thoughts
Gift card sales are quickly soaring and making immense profits for businesses that have adopted it, especially during the holiday seasons. You don’t want to get left behind in as everyone else makes good of this jackpot.
