Why Gift Card Customers Are Your Greatest Asset
Since being introduced back in 1994, gift cards have continued to grow in popularity, becoming comprehensive solutions for a number of businesses. Known as the gift that gives back, gift cards can be incredibly beneficial to your business as long as your marketing is managed effectively.
Savvy retailers should absolutely be looking at a comprehensive eGifting strategy that can help them create new revenue streams, attract new customers and retain current loyal customers. It’s been estimated that gift cardholders spend up to 40% more than the amount on their gift card when they visit a retailer. This is usually down to impulse purchases or choosing you over other retailers due to convenience. If your outdated systems, poor POS channels or lacking customer engagement strategies have given you a lacklustre gift card offering – now is your chance to go digital and reap the benefits.
Tranxactor offers management utilities for both physical and digital gift card options, with our plug and play eGft portal and our fully managed ‘Thor’ solution for issuing and cardholder management for physical cards. Unlike other systems, our integration with POS gives real time insights into purchase or redemption history, allowing you better control for you to use gift cards as a marketing tool. But first – is putting your budget into gift cards a wise investment? We believe so. Here’s why.
A Popular Gift
Because of the flexibility of gift cards and the ability to personalise them to the recipient, they have become one of the most popular gift options in recent years. During the festive season, it’s estimated that around 80% of consumers purchase gift cards to give as a present. It’s the most wonderful time of the year, after all, and it could be too for your business.
While your existing gift card customers are possibly the biggest asset to your business, there are ways that you can increase your gift card sales by opening up your visibility to other markets. By implementing effective customer relationship management systems, you will have the ability to capture vital data that allows you to market your gift cards to your desired audience and beyond.
• A gift card does not cut into your profits
• Nearly 90% of gift cards are redeemed within the first 60 days of purchase.
• Gift cards give consumers the perception of having money to spend.
• 55% of consumers that use gift cards will return more than once to deplete their cards, giving the retailer (you) additional upsell opportunities.
Young people – generation Z – are reportedly requesting gift cards as gifts for birthdays and Christmas which opens sales to an entirely new and modern market. Around 98% of teenagers are estimated to have either requested or received a gift card in the last three years. Market your brand effectively to be the go-to retailer for the upcoming market of young people.
Building Brand Awareness
It goes without saying that a gift card is a cost-effective advertising tool. It can give your business visibility to an audience that you haven’t yet reached. But when someone receives a gift card to spend with you, they will be compelled to visit your store, with your brand image at the forefront of their minds.
Use the vital data you hold on your existing customers to create an effective eGifting strategy. Tranxactor offers a comprehensive and proven solution for any type of gift or prepaid program backed by a solid robust processing platform. Physical or digital, one-time or reloadable, minimum and maximum load values, flexible expiry –we can help. Using our digital gift module, you can access a simple web portal, linked from any website. This provides an end to end solution for managing digital gift cards and can be white labelled to your branding. Featuring the latest security controls, this enables a purchaser to send a digital gift to anyone via email or SMS. As well as online, we also help with instore purchases. Simple scan the QR code at POS or enter a card number into a secure online plug in module. That means no major development is needed to your corporate website, whilst you benefit from full reporting and insights. Here are some of the features and functions of Tranxactor’s platform.
- In-store sale of cards
- Out of store sale of cards
- In-store or online redemption
- Reload or recharge capability
- Real-time authorisation and transaction processing
- Optional cardholder registration
- Online reporting (including fraud detection)
- APIs for integration with existing environments
- Combine with vouchers, coupons and other promotions
- Full integration with your POS
- With card or cardless
- Mobile ready complete gift solution
- Use traditional plastic cards, barcodes, RFID or digital
- Settlement of payment accounts
- Perfect for franchise or corporate store environment
- Bulk purchasing
- Delayed activation
- Card security – PIN or Customer Security Code (CSC)
- Increased security and fraud reduction
- Online customer portal to check balances and redemptions
- Part of a fully integrated loyalty and CRM program
Tranxactor also offers a proven model for franchise organisations wanting to introduce a ‘closed-loop’ gift card programme to their network. Tranxactor provides full end to end financial settlement between franchise group members, enabling the sale gift cards from one outlet and the redemption at one or more other outlets, with full reconciliation and online reporting, plus daily automated liability reporting.
Our smart system can revitalise your gift cards programme, helping you to show you appreciate your loyal customers whilst also capturing new – they are, after all, your most valued asset.