62% of consumers favor gift cards over other gifts, according to the National Retail Federation. Why should a small business owner care? A majority of gift card recipients overspend, according to the National Retail Federation. Can you hear it? Redeeming business gift cards can boost income, plus other uncountable merits. Read on to know in detail all about small business gift card systems.
What Is a Gift Card?
A gift card is similar to a prepaid debit card in that it has a predetermined amount of money loaded onto it and may be used to pay for a range of different transactions. Store gift cards are designed to be used at the specific merchants or stores that the card is linked with, but general-use prepaid gift cards are not affiliated with any particular merchant and can also be used to withdraw cash from automated teller machines (ATMs).
How Do I Offer a Gift Card to My Small Business?
It’s possible that taking advantage of whatever gift card option is available in a point of sale (POS) system would be the easiest choice for many kinds of small enterprises. You may also buy them from third-party sellers and add them as a new “item for sale” in your point-of-sale system. You also have the option of purchasing them from a financial institution that provides this service.
Why Every Small Business Needs a Gift Card Systems
Increasing revenue is the primary goal of implementing small business gift card systems. Really, it’s as easy as that. It’s true that a gift card program can be beneficial for a number of reasons, including customer convenience, a decrease in gift certificate fraud, and an air of professionalism at the register, but the main reason to implement one is financial. Here are five ways in which a gift card systems might help a small business succeed.
#1. Compete with National Stores
Gift cards are a popular option for customers when shopping for a present, but they prioritize ease of use over originality. Your mom-and-pop restaurant may be great at supporting local farmers and making the finest omelet in town, but time-pressed Christmas buyers will likely choose gift cards at the stores where they can spend the least amount of effort. That’s why it’s important to sell gift cards both in-store and online (and preferably elsewhere) if you want to compete for gift card buyers’ hard-earned cash.
#2. Outsell Gift Certificates
For reasons of safety, most small businesses hide their gift certificate stockpile somewhere other than the register, counter, or back area. (Have you ever asked for a gift card but been given a tattered paper certificate?) Although some storefronts may post an ad for gift certificates near the cash register, most will just wait for clients to ask about them.
As a result, it shouldn’t come as a surprise that firms who replace paper gift certificates with plastic gift cards see a boost in gift card sales of 35% to 50% and, according to some estimates, even 100%. Putting gift card displays at checkout has been shown to boost sales.
#3. Get the Uplift
Customers who are spending gift cards are less price-conscious than those who are spending “their own money.” Instead of looking for bargains, they frequently pay full price. According to research conducted in 2010 and released in 2011, 72% of consumers who bought gift cards spent more than the card was worth. The study also found that “25% of respondents used their gift card on something they hadn’t expected to spend money on, 8% opted to upgrade their purchase, and 3% shopped at a different retailer than they typically would for the item they bought.”
#4. Bring in New Business
Gift card programs can increase foot traffic by attracting both the purchaser and the giftee. Research conducted by First Data and cited above found that “11% of gift card receivers noted they had never or rarely visited the merchant’s location” prior to receiving the gift card, and that more than a third of gift card recipients altered their usual purchasing habits in order to use the gift card. You can reward both the provider and the receiver by offering discounts on future purchases when using gift cards. For example, if you spend $100, you can get a $10 promotional gift card.
#5. Build Relationships
With an electronic gift card program, and especially with a reloadable gift card, you may make new connections with both gift-givers and recipients. Gift card recipients can go to your website to do things like activate the card, check their balance, add funds, view current promotions, find store locations, and more. By linking the card to a loyalty program, you may give out points to clients after they make a purchase or recharge their cards. Customers who receive incentives based on their purchasing behavior are more likely to return and become brand advocates.
Gift Card Systems for Small Businesses
The following are gift card systems packages every small business needs to have.
#1. Revel Systems
The iPad POS system Revel is powerful and adaptable to the needs of every business. As an optional extra for a little cost each month, Revel offers its own gift card system built from the ground up. After signing up, you can order gift cards from your sales rep or through Revel’s partner eCard Systems. Digital gift cards, which clients can purchase and redeem through your website, are another convenient payment option. There are other gift card programs, and Revel will interface with them.
Your Revel POS system can generate reports detailing gift card sales and inventory levels. Additionally, if you have used a gift card program with a different point-of-sale system and would like to switch to Revel, you can import your data.
#2. Clover
Clover POS is an Android POS system that runs on app-based software. Although Clover’s software may be used in any business, it has found particular success in the QSR industry, which includes coffee shops. You can offer your clients both physical gift cards with magnetic strips and digital eGift cards that they may store on their phones using the free Clover Gift Cards app. You’ll be charged $0.05 for every $2 in gift card value, but there is no recurring monthly fee.
They can purchase clover Gift Cards online and redeem at any location where the store is located. The digital version is the most practical because it can be bought and redeemed from customers’ mobile devices. Digital gift cards are available for purchase and redemption on your Clover website, and customers can even send them to friends and family.
#3. Square
Square’s free and simple point-of-sale (POS) and mobile processing solution has grown popular in the retail and restaurant sectors. The same holds true for the company’s promotional gift card program at no cost to merchants. It’s easy to get gift cards from Square, and their prices are fair and straightforward. In the Square app, it takes only a few taps to create digital or physical gift cards.
Square provides both basic starter kits and complete freedom in designing actual gift cards with your own artwork. We can order physical Square gift cards from eCard Systems and have a magnetic stripe, Quick Response (QR) code, and traditional bar code; It can also load them with additional funds. You can sell digital gift cards online or in person with Square. Physical gift cards cannot be sold through your Square website.
#4. Lightspeed
Lightspeed’s cloud-based retail POS, Lightspeed Retail, comes with a plethora of gift card possibilities for no extra cost each month. Lightspeed makes it simple to sell gift cards online (if you have Lightspeed eCommerce enabled) or at the point of sale (if you have a physical store). However, if you want to give someone a physical gift card, you’ll have to do so through a third-party vendor. Lightspeed suggests Plastic Printers, but you’re free to go with whoever you like. The barcodes on gift cards must adhere to either the EAN-13 or UPC-A standards in order to be read by your POS system.
We can use gift cards for Lightspeed either in-store or online. Lightspeed POS allows you to not only sell gift cards, but also check their balances and send them to other people. One further choice is to sell both digital and physical gift cards by utilizing one of the many third-party connections offered by Lightspeed. Notable among these integrations is the free MDWare one, which enables the printing of paper barcode gift cards at no cost.
#5. Touchbistro
TouchBistro is a cheap and simple restaurant POS for the iPad that allows you to offer digital gift cards online or at the register. We can redeem digital gift cards in-store or online, while they can use physical gift cards at any of your locations that accept TouchBistro. If you use the TouchBistro loyalty add-on, gift cards can also be used in the restaurant. TouchBistro’s loyalty program, for instance, allows patrons to accumulate points toward prizes like gift cards.
We can use TouchBistro with a wide range of payment gateways, although not all of them support gift card terminals. It’s worth noting that TouchBistro works with Square POS, whose readers may accept gift cards (via swipe or manual card number entry).
#6. Toast
Toast is an Android point-of-sale system made for eateries that prioritize digital ordering. If you’re searching for a high-end point-of-sale system for your restaurant, Toast is a terrific choice because it allows third-party integrations and gift card programs for both physical and digital cards. One of Toast’s third-party connectors can be used to create a gift card program.
Toast has the option to sell gift cards digitally and physically at your point of sale as a paid add-on. In addition to using their cards at your POS or on your website, your clients can also reload their cards at any time. Toast simplifies the process of buying digital gift cards for friends and family by allowing users to plan the delivery of the card through text message or email at a future date and time. Your Analytics and Reports dashboard provides clear visibility into every gift card sale.
#7. Stripe
Online businesses that want to sell gift cards through a well-designed website will find Stripe to be an appropriate online payment processor due to its adaptability. Stripe is not a do-it-yourself (DIY) all-in-one option for beginners looking to sell gift cards online because it requires programming experience. Because of the technical nature of integrating Stripe into a website, you may need to employ a web developer if you lack these skills. Despite the fact that you may use WooCommerce, a popular e-commerce platform, to establish an e-commerce website with Stripe, the platform is best suited for professionally developed sites because to its comprehensive features.
Stripe already integrates with a number of digital gift card software solutions, but you can also create your own connections with the API.
#8. Shopify POS
Shopify POS is an iPad point-of-sale system that combines the best of both worlds, allowing for customization and expansion as needed. Shopify’s gift card feature is available at no extra cost and works seamlessly with the rest of the platform. You may print physical gift cards from your business’s receipt printer, buy plastic gift cards from Shopify’s Hardware store, or send customers a digital gift card via email.
Gift cards from Shopify can be purchased at the point of sale and redeemed online. Shopify gift cards come in both physical and digital formats, with the latter having the added convenience of being able to be stored in the recipient’s Apple Wallet for use at the point of sale. We can redeem Shopify gift cards on any of your other online channels that integrate with Shopify’s checkout, including Facebook, Pinterest, and “Buy” buttons on WordPress and Squarespace sites. Existing customers can be rewarded, refunded, or incentivized via the issuance of a free gift card of a predetermined value.
#9. Quickbooks POS
For Windows-based computers and tablets, QuickBooks POS is a local point-of-sale (POS) solution. The system’s primary value is, somewhat predictably, its ability to synchronize your sales data with QuickBooks Desktop. Gift card management is handled by Givex, and it is a feature of QuickBooks POS. Businesses that use QuickBooks for their bookkeeping and are interested in a point-of-sale system that interacts with QuickBooks (and are fine with plastic gift cards only; QB POS does have an eCom connectivity option, but does not offer eGift cards) may benefit greatly from this gift card service.
Someone manage independently gift card sales and balances in QuickBooks POS. Additionally, shopkeepers can verify gift card balances at the register without making a purchase and provide refunds in the form of store credit. If you have the “POS Multi-Store” package in QuickBooks POS, it will print gift card numbers and balances on receipts, and customers can redeem their cards at any location.
#10. Shift4shop
If your company wants to open an online shop to offer digital gift cards and other items, consider using Shift4Shop (previously 3dCart), an inexpensive and straightforward eCommerce website builder. Shift4Shop is a complete package that includes money processing and a free plan that’s quite substantial. Shift4Shop is an excellent choice for both brick-and-mortar stores and service businesses like spas that wish to offer gift certificates online because of the abundance of free templates it provides.
We can sell gift certificates alongside other items on your website, and purchasers will receive an electronic code through email that can be redeemed for a gift certificate. The “To” and “From” areas are where the client may enter their names, and the “Message” field is where they can enter up to 500 characters. The Gift Certificates API (REST) allows web developers to construct apps that expand on Shift4Shop’s gift certificate functionality. However, it’s pretty uncomplicated to create these basic gift certificates using Shift4Shop.
How Do I Set up Gift Card Systems for My Small Business?
Following these guidelines, you may get your small company’s gift card program off the ground.
#1. Choose an Appropriate Gift Card System
It’s crucial for small businesses to find a gift card program that fits their demands and can easily interact with their current sales infrastructure. Gift card management can be handled in one convenient location: your point-of-sale (POS) system. It is possible to include a gift card system into your business with several POS systems.
The gift card system is included in certain POS systems, while others require a separate app.
Using gift cards to grow your small business is a breeze when you set up a system through your point-of-sale. You can easily make gift cards, advertise them, mail them, and keep tabs on their whereabouts.
All you have to do is ask your POS provider if they provide gift card integration, and if so, what the costs are.
#2. Buy Wholesale Gift Cards to Resell to Customers
A select number retailers and services will let you buy gift cards directly from their database. The purchase of gift cards from a third party may be necessary for some.
When buying gift cards, it’s important to personalize them by adding your company’s name and emblem. In addition, stock up on gift cards so you won’t run out if and when a customer requests one.
#3. Follow Government Guidelines and Regulations
When building a gift card system for your company, it is crucial to conform to provincial, state, and national legislation.
I shield consumers from the snares set by unethical businesses by these types of legislation. So as to avoid any penalties or punishments and keep your brand’s integrity intact, you must adhere to specified gift card criteria.
#4. Provide Training to Your Employees
Investing in thorough employee training is essential if your company is new to the gift card system. When the gift card orders start rolling in, you don’t want your staff to feel overwhelmed.
Therefore, it is imperative that you provide a comprehensive training program for your staff members to become comfortable with the gift card system.
#5. Promote Gift Cards to Customers
The next step after introducing a gift card program at your small business is to advertise it. After all, how else are buyers supposed to buy your goods if you don’t sell it effectively?
Create a strong advertising campaign to persuade consumers to acquire your gift cards. Let’s examine a number of approaches that can help you hone in on your ideal clientele.
How Do I Set up Gift Card Systems for My Small Business?
Integrating your POS gift card system with your other marketing and sales initiatives will yield the best results. Here are a few tips to sell more gift cards.
#1. Advertise Your Gift Cards
Give your consumers plenty of notice that gift cards are available and how they may be obtained. They can promote gift cards in a wide variety of ways, including online, in-store, via email, and more.
#2 Combine With Promotions
For example, you may give free gift cards as a loyalty perk for your highest-spending customers, or sell gift cards at a discount in the run-up to the holidays.
#3. Offer Multiple Gift Card Options
Gift cards can be electronic or physical, depending on the recipient. You can increase gift card sales by providing customers with a choice. Customers would also appreciate having more choices for redeeming gift cards (in-store, online, social media, etc.).
#4. Optimize Your Website
Customers should be able to buy and use gift cards on your company’s website. Make it simple for clients to buy gift cards online, and provide a wide selection of products.
Do Gift Cards Help Small Businesses?
You may count on gift cards to increase your retail business’s revenue and success. When compared to gift cards, reductions reduce the value of your products and only attract one-time buyers.
Thanks to the cards, you can upsell clients on further purchases when they return to your store several times. Research shows that shoppers who use gift cards spend at least 30 times as much as they did on gift cards at the store.
How Do Companies Make Money from Gift Cards?
In addition to paying a premium to the retailer at which the gift cards are sold, they also provide the company that is responsible for handling the transaction a certain percentage of the entire price. They have a deposit made to their cash-on-hand account whenever the card is acquired, and they utilize that money to buy equities on the stock market. 2: When the card is purchased, they have a deposit made to their cash-on-hand account.
How Do Electronic Gift Cards Work?
They are merely an electronic version of a real gift card that can be sent directly to the recipient’s email address. The recipient can then use the gift card either in-store or online. A digital gift card, similar to a physical gift card in that it may be loaded with money and spent in smaller increments or used to cover the cost of a bigger transaction, can also be used in the same ways.
Can I Make My Own Gift Cards?
Instructions for Creating Your Own Gift Cards There are three distinct varieties of homemade gift cards that can be created by you. The first option is a one-of-a-kind plastic gift card that bears a photo of the recipient’s choice. The second option is a digital gift card, also known as an gift card, which can be given to the recipient electronically. The third option is an gift card that the recipient can print out on paper at home.
FAQs
Is there an app that holds all gift cards?
The ability to use gift cards was just added to the Android and iOS versions of Google Wallet by the company.
How do you keep track of gift cards?
You can organize them by using a credit card holder or a business card holder.
Can the IRS track gift cards?
This form is used by the IRS to keep tabs on any gifts you make in excess of the annual exclusion amount.
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