Are you apprehensive about charging your customers a fee for using Visa/MC? If so, offer them an alternative! Instead of just paying the money to you outright and getting nothing in return, customers can put the fee on one of your gift cards and let it build up until they can use the balance to make a purchase from you, or offset the cost of future purchases. All you need is the Clover POS or newer Smartphone model and you can stop paying thousands each year to the bank in credit card fees. That money can go right back into your pocket as customers return to spend their balances and more!
Do you offer gift cards for your product or service? If not, here’s why you should!
As gift cards became more attainable, they soared in popularity especially during gift season. Not only that, but countless people purchased them during the pandemic to keep their favourite businesses afloat when shopping and dining wasn’t an option. Those who didn’t have gift cards at the time regretted it, and many of them aren’t even around anymore.
Gift cards offer the control, ease, speed, convenience and satisfaction of cash without being tacky and impersonal. Rather, they give the option of a personal touch, but at the same time the consumer can choose something they want; something they need; something that actually fits. Unlike a gift certificate which could be thrown in a drawer, lost and forgotten about, a gift card fits easily into your wallet.
Gift cards can be probably displayed on the counter emblazoned with your logo, loaded safely upon purchase. Once they are purchased they act as a continued advertisement; reminders to the recipient each time they see it, greatly increasing brand awareness.
As a recommendation from regulars to new customers, the gift card grows your customer base and increases foot traffic. Businesses can offer (as) incentives, e.g. purchase $100 and get credit on an existing card, or a $10 gift card.
Studies show that in comparison to gift certificates, gift cards increase sales by 30%. What’s more, sponsorship can be used to offset the cost of cards, e.g, Coca-Cola wants to advertise on the gift cards, and in exchange they pay for the advertisement, or give the business a couple of cases of free Coca-Cola, which could be used for sale or personal use.
Customers have confidence in gift cards because they feel that the current and accrued credit will be actually used because it easily fits in their wallet, but businesses still make a large profit off cards and balances that never get used at all- it’s essentially free money.