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Gear Up for Gift Cards: Pt. 4

Why You Should Switch to Plastic Gift Cards

 

This blog post is the final post of a 4-part series on promoting, selling and maximizing profits of gift cards during the 2010 holiday season. Last week, we focused on social media and offered 9 strategies to promote gift cards online.

 

Now that we’ve covered the benefits of emphasizing gift card sales during the holidays and promotion tips, below are reasons why switching from paper gift certificates to plastic gift cards will help your business save time and grow revenues.

 

  • Research shows that businesses using plastic gift cards increase sales an average of 35% over paper certificate programs.
  • In addition, customers spend an average of 40% more than the value of the card when using a plastic card versus a paper certificate.
  • If running a small business, transitioning from paper to plastic puts your restaurant or store on the same level as major chains with a plastic gift card program in place. Plastic cards certainly look more professional.
  • The majority of consumers keep plastic gift cards in their wallets – take advantage of having an advertisement in customers’ hands all the time!
  • Reporting and analysis will be much easier. It is simple and fast to track, analyze and process gift cards when the electronic data stored on them can be quickly updated on the point of sale.  
  • Plastic cards make it easier to engage customers online. Your customers can go online to check their balance, reload their cards and purchase additional gifts, giving them more interaction with your website and your brand.
  • Retail stores have seen a reduction in shoplifting when a policy to put refunds without a receipt on a gift card is implemented. This discourages stealing and then asking the cashier for cash back. Many national chains have made this a store policy.
  • Save time! Think about the time it takes to look up a paper certificate number and apply the amount to a total. Plastic gift cards drastically cut processing times to increase speed and improve customer service.
     

Please reach out to us if you have any additional questions or comments about gift card sales. Radiant is here to help!