What’s the real ROI of these tools? See how to sell your clients on these solutions.
Gift and loyalty card solutions are common for many business owners, but you still may encounter merchants who don’t use them. It is even more likely you have clients using outdated solutions. Educating your merchants on the value of these tools can help them take better care of their customers and grow their bottom line.
Why do your clients need to offer gift cards?
If your merchants don’t offer gift and loyalty cards, they are leaving sales on the table. Blackhawk Networks reports that 61% of consumers spend more than the face value of a gift card. Moreover, on average, they spend $32 more when shopping with gift cards. Additionally, gift cards are a favorite choice among last-minute shoppers. Blackhawk found that 32% of all gift cards intended as gifts are purchased on the same day.
Gift cards can also improve a merchant’s cash flow. With gift cards, merchants are paid upfront, sometimes before they invest in inventory. This influx of cash before expenses gives merchants more flexibility and a cushion in an uncertain economy. Gift cards also encourage store traffic. Anyone with a gift card is likely to redeem it — and if the purchaser gives it as a gift, it may introduce a new customer to the business.
A loyal customer is more profitable than acquiring a new customer.
That store traffic that gift cards and an effective loyalty rewards program can build is good for business. Loyal customers are worth more, spending 10 times more on average than other customers. Customers who return and spend more have a higher customer lifetime value (CLTV). When a merchant has a base of loyal customers who are likely to spend, they can count on revenues rather than constantly trying to find new customers to help cover expenses.
Loyal customers also help merchants understand their market better. The data from engagement with loyalty program customers can provide insights into what their target audience wants, the best ways to deliver it, and how to maximize sales.
In addition, happy and loyal customers are more likely to tell their friends about good experiences with a merchant. They will also tend to give their friends gifts and gift cards from these merchants.
How merchant services providers can stand out from the competition.
As gift and loyalty strategies became more popular, many businesses used “add-on” or standalone systems. They quickly learned that an integrated solution is easier to manage and helps them make the best use of the data they collect. An integrated system also provides better customer experiences. It allows customers to redeem gift cards and loyalty rewards, both in-store and online, with minimal effort or frustration.
But not all gift and loyalty card solutions, even if they integrate with the merchant’s point of sale system, are the same. You can stand out from your competition by giving your clients options so that they can choose the program that works best for their business.
For example, they can use a gift card solution that allows them to sell branded cards on all channels. Physical gift cards are currently more popular, with 49% of consumers reporting they purchase physical gift cards every three months versus saying they buy electronic gift cards in the same time frame. However, that percentage increases among younger consumers and those who use mobile wallets. Ensure your clients aren’t missing out on nearly one-third of the gift card market.
How to sell your clients on a new gift and loyalty solution.
Gift and loyalty programs increase revenues, which will capture merchants’ attention. However, as a trusted business advisor, you should also show your clients how to use these technologies to improve their relationships with customers. The income from loyal customers will add up to much more over the relationship, even than from a large one-time sale.
When you educate merchants and give them the right tools, they can grow their business — and you can grow yours. To learn more about gift and loyalty programs that seamlessly integrate with North American Bancard and how to sell your prospects on new solutions, contact us.
