Member Benefit News

Electronic Gift Cards -- Not Just for Gifts Anymore

Electronic gift cards loom large in the retail marketplace these days. Statistics show they are the number one purchase for birthdays and graduations -- and gift cards will no doubt top shoppers' lists for the upcoming holiday season as well. But the shiny plastic cards have year-round value for all sorts of businesses, and they've proven their worth far beyond typical gift giving.

Here are some other ways gift cards can benefit your business all year long:

r Issue a store gift card in lieu of cash for returned merchandise -- keep the dollars in your store and give customers a reason to come back.

r Use gift cards as a marketing tool to announce a new location opening or simply to boost business. Load cards with a small dollar amount good toward a larger purchase and distribute them through local neighborhood associations, office parks and churches. You'll draw in new patrons with this "coupon" approach, and have a built-in way to track the promotion's performance. Detailed online reporting is offered by most carriers where you can view issued cards, redemptions and outstanding balances.

r Encourage customer loyalty by "pre-selling" goods and services via a gift card. As customers return to your business and use the card, their prepaid balance dwindles. They'll enjoy the convenience of purchasing necessary services such as dry cleaning or oil changes in advance, and cards can be reloaded when funds are gone.

r Reward new and regular customers with a gift card as a way of saying thanks for their business. The value loaded on the card doesn't have to be large, and it isn't really "money" until it's redeemed. It ensures you'll build loyal patrons for your business.

These are just a few examples of the way gift cards can serve your business. This information is brought to you by Elavon. Call Kimberly Layton with any questions or for more information on the credit card processing program at 1-866-638-8614.

Reprinted from Central Vac Professional, October 2009