With more than 28 million small businesses operating today, many would agree they are truly the engine of the U.S. economy. However, as today’s economic challenges persist, it is important that small businesses continue to uncover new ways to cut costs and drive revenue, while satisfying current and new customers. Increasingly, small business decision makers are embracing prepaid solutions, such as closed-loop (or store-branded) gift cards, as more and more consumers are turning their appetite for gift cards into an all-out public embrace.
Simply put, a gift card program for your business would offer you a variety of benefits. In addition to helping build a loyal customer base, the cards also create additional foot traffic, both by the purchaser and the receiver, generate brand awareness and increase same store sales. According to First Data’s 2011 U.S. Prepaid Consumer Insights Study, the average amount spent per card grew in 2011, increasing by more than 23% compared to 2010. The average total amount consumers spent on store-branded gift cards increased to $211 from $161 last year.
However, while consumers continue to open their wallet and spend more on gift cards, it is imperative that small businesses understand the trends and continue to develop and enhance new and current gift card offerings that cater to consumers’ evolving demands.
For merchants who want to take full advantage of this channel opportunity, the time to get in the game is now. Fortunately, businesses of all sizes have access to gift cards programs that are affordable and easy to implement. As small businesses look to new strategies to boost their business, implementing or enhancing prepaid gift card programs should be among the first to consider.
Furthermore, by adding a loyalty component to the card, businesses not only gain additional uses and drive more sales, they now gain a competitive knowledge in who their consumers are, their buying habits, etc. And, the same plastic card that the business uses for the gift card campaign can even be used for a loyalty program as well – both programs on the same card for a nominal fee.
To find out more about how you can take advantage of our gift & loyalty card programs, please contact us at 201.645.0132 or contact your sales representative today.
Originally from http://www.firstdata.com/en_us/insights/Perspectives_Johnson_SmallBizWeek_3.html, written by Jeff Johnson