9 Reasons Why You Should Have A eGift Card System In Your Restaurant
The biggest advantages of using a Gift Card system in your business are the increase in your customer base and the achievement of a higher profit margin. The benefits of this system are many and the best thing is that it does not require a large investment. Know 9 reasons why you should implement gift cards in your business.
According to the National Retail Federation, gift cards have been the most requested gift by Americans for the past nine years. This makes gift cards into instruments of potential benefits for your business. Here I present 9 of the main advantages of adopting this system:
1. The Gift Card Attract New Customers
The gift cards are widely used as a gift, hence the name given to them there. Who receives a gift card from your business is a potential customer who will probably visit your store to “spend” your gift. If the experience is pleasant, you will surely have won a new client.
2. Because Gift Cards Look Like Real Money
A gift card is perceived by customers as equivalent to real money that can be spent immediately. More than half of consumers will visit your store several times to spend their free gift, which gives you opportunities to cross-sell and improve, cross-sell and upsell style.
3. These Offer Advance Earnings
A gift card system guarantees you money in advance for any product or service. And as the saying goes: “better bird in hand than a hundred flying.”
If you have a large sum of money sold on gift cards, it can be used for anything you need. Whether to reinvest in your business or pay the payroll, it is money that is already in your pocket. At some point, you will have to deliver that amount in products or services, but this could happen within a week, a month or a year. In some cases, you may not even have to deliver anything.
4. Produces The Breakage Effect
The breakage refers to any type of paid service that is ultimately not enjoyed by the customer. In this case, we refer to the amount that remains on the card that is not claimed.
A person can receive a gift card for $ 10, exchange it for a $ 9 item and throw the card to the garbage man. In this case, as a retailer, you have delivered $ 9 in products and received $ 10 in profits.
On other occasions, someone receives a gift card for a service or item they do not need, so the card will never be used.
5. Reinforce The Image Of Your Brand
Gift cards are a good investment to advertise your company. They are a mini billboard for your clients, inviting them to spend on your business. Highlight your brand in more potential customers and help to have greater visibility. They also generate more sales at a lower cost than traditional advertising.
6. Avoid Fraudulent Returns
If you offer products then you can offer gift cards as a form of payment for returned products, ensure that the money is used again in your restaurant or store. This decreases fraudulent returns.
7. Open other promotion ways
You can use a gift card system as part of your promotional strategy. You can make different offers for maintaining balance on the card, for recharges per month, etc.
Also take advantage of this opportunity to promote your Restaurant with the neighbors of your area, giving low denomination gift cards to real estate agents, charitable organizations, banking agencies, hotels concierge and tourist agencies. It is an investment that will be rewarded in the medium term with the arrival of new clients.
8. Adaptable to cheap or expensive products
If your business offers low-cost services or products, sell gift cards for small amounts. A person with $ 1 left on a card can probably complete buying a $ 3 product. That accumulated amount could be the difference between your business and the competition.
On the contrary, if your company is selling high-cost products and the cheapest one costs $ 1200 and someone buys a gift card of $ 500, the dynamics guarantee your company $ 500 in “breakage” or a minimum of $ 700 in extra profits.
9. Implementation of a digital system of Gift Cards
The use of technology expands the number of customers you reach, enables more forms of use to generate higher sales and allows an easier way of distribution through email.
We hope that this information has been useful to expand your knowledge about gift cards. If this tool seems ideal for your business, do not wait any longer and click here to implement your eGift Card system.
