According
to the latest numbers, at least 93% of the consumers in America have sent or
given a gift card. Experts believe that the number of gift cards sent will
surpass the $160billion mark by next year. It simply means that all consumers
love gift cards. Most coffee shops accept or issue gift cards; if not, they are
jeopardizing their business chance to succeed. If you are still not convinced,
we enumerate why your business should give gift cards.
Why Do You Need to Issue
and Accept Coffee Gift cards?
Here
are the main reasons why a coffee shop should consider issuing gift cards.
It Increases the Traffic
in Your Business
There
is absolutely no doubt that using gift cards will increase your loyal
customers. Remember that for every gift card sold; you will be able to address
the needs of two customers; the person who purchased the coffee gift cards and
the recipient of the card. According to the research released by First Data,
over 10% of gift card recipients have never visited the physical establishment
before. It should be included in your marketing strategy since your loyal
customers are helping you achieve new business.
Increase Your Bottom Line
Aside
from increasing the foot traffic on your establishments, coffee gift cards will
also help you improve your company's revenue. Compared to your loyal customers,
those who use the gift cards are not overly concerned about the price. They usually
consider coffee gift cards as discounts or free money. It means that there is a
possibility that they will spend more than the value of the gift card when they
redeem it. According to the study, a customer is willing to pay 38% more than
the gift card's value.
Build a Customer-Client
Relationship
If
you are offering a reloadable gift card, you will be able to collect important
information about the cardholder, making it a powerful tool for your lead
generation campaign. You can also monitor the buying behavior of the customer.
You can significantly improve your marketing efforts with these analytics. A
more effective marketing strategy will improve relationships and increase
future sales. You can also remain connected with the buyer and recipient of the
coffee gift card.
Minimize the Returned
Products
Processing
the returned items is not only a laborious and time-consuming task; it is also
expensive and can affect your business's bottom line. It involves restocking
the inventory and identifying the amounts that should be returned to the
customer. Since the customers will be able to choose the merchandise or product
they prefer, you will be able to minimise the returned items and the expenses
related to managing them.
Security
is a significant concern for every business. Data breaches happen all the time,
but since gift card is a form of offline marketing, it minimizes the need to
store the information in an online database. Gift cards have been proven to
reduce the number of fraudulent activities. You no longer have to worry about
the possibility that your customers' information might be stolen or duplicated.
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