Since Blockbuster developed the gift card in 1994, merchants and marketers have used them as a promotional tool to increase sales, attract new customers, build brand recognition, and inspire repeat purchases. Indeed, the market for gift cards shows no indications of slowing down. By 2027, experts predict that the global market for gift cards will be worth $1.9 billion. As the popularity of eGift cards and buying Starbucks gift cards grows, online retailers would be wise to adopt a gift card strategy for their business.
Online Gift Certificates And Card Processing
A gift card, often called a gift certificate, is a card that may be used to make purchases at a particular shop. Retailers often hand these out to reward loyal customers and entice them to shop with them again. Both in-store plastic cards and digital eGift cards are available as gift certificates. Magnetic stripe gift cards and barcode gift cards are two examples of physical gift cards. You’ll often find them in establishments with actual walls and floors. Alternatively, eGift cards may be bought on a business’s website and used virtually or physically. They make it simple and quick for online stores to sell gift cards.
Profitability Boosted Due To Uptick In Sales
Businesses may benefit in several ways from the use of gift cards. One way is to promote it via the sale of gift cards. Businesses may boost their cash flow by selling gift cards to customers. Every time a consumer uses a gift card, it’s a chance for you to make more money. First Data reports that consumers spend $38 more when purchasing gift cards than the card’s value. Higher-priced things are likewise more likely to be purchased by this demographic.
Recruiting New Clients
Gift cards are a great way to attract potential new clients. It occurs when your devoted clientele buys gift cards as presents for their loved ones. It helps you expand your clientele by attracting those who wouldn’t have visited your business otherwise. Distributing gift cards as contributions to nonprofits and selling them at community events are two other ways to expand your clientele. It’s a win-win: you get free advertising, and the receivers are more likely to buy anything from you; thus, you increase sales.
Increasing Visitors To A Website
Paper certificates and plastic gift cards are becoming obsolete as eGift cards gain popularity. There is a $767.4 billion market for gift cards. Digital gift cards are preferred by 40% of consumers. Anyone may buy a gift card from you online and send it straight to the recipient’s inbox, saving them the trouble of making a memorable trip to your business. It’s simple to redeem an e-gift card. You may quickly scan them using a mobile or online app. They have many helpful features and may save customers from visiting your business, which is very useful for those who need to buy presents at the last minute. More people will visit your site as a result of this.
Creating A Loyal Consumer Base
Brands that run Christmas gift card promotions for their existing consumers are more likely to see increased loyalty and repeat purchases throughout the year. If a consumer spends $50 on gift cards, you may reward them with a free $5 card and see a rise in loyalty. Providing clients with such a bonus is a smart strategy for increasing sales of gift cards and encouraging repeat business. If the business is sluggish after the holidays, offering additional gift cards for a limited time might assist.
As you can see, selling and buying Starbucks gift cards is beneficial in many ways. Online merchants may gain a lot without spending a fortune by incorporating eGift cards into their online businesses, including increased sales, customer loyalty, brand exposure, and simplified return policies.