Marketing is necessary for every business, as it helps to accelerate online as well as offline traffic. With the products sold and the services provided, people get to know a company’s name through various aspects of marketing. It aids in getting the attention of the people, so that the final good or service can be purchased.
The best way to make your customers come back and purchase more is by using the gift cards strategy. It is considered to be the most effective marketing tool currently present in the market. In Nigeria, an individual can sell gift cards for Naira. This has become a popular trend in the market. The right use of these strategies will lead your business to be more recognised by the target audiences.
Five reasons that derive why gift cards are a better way of marketing-
There are various reasons as to why gift cards are known to be as an effective tool of marketing. Here are some of the reasons-
- Greater perceived value– A gift card is known to have a higher perceived value. A coupon offered to the customer will give them the perception of having money to spend. However, a gift card will be more beneficial if used twice. Hence, it will provide you with an additional upsell opportunity.
- Does not cut into your profits– A gift card when offered to a person instead of a coupon or a discount, it can recoup your investment quickly. It is known that approximately three out if four gift card holders spend more than the value of the gift card. This is why your profits will not be cut if the gift card strategy is used.
- Generate revenue in advance– A gift card is known to be paid in advance of any product or service that is being rendered. The benefit is that you will have the cash with you until the consumer redeems it. The gift card strategy helps in improving the business cash flow rather than any other strategy.
- Building brand awareness– A gift card being cost-effective is a better advertising tool. A gift card is less expensive than a wall-sized billboard. However, its efficiency is no less than a wall-sized billboard with low price. It helps your customers to be reminded of your business and increases brand memory retention.
- More convenient– A gift card is more convenient or comfortable to use instead of any other promotional tools like paper gift certificates. Businesses have experienced a rise by 50% in sales by retailers after shifting from paper gift certificates to gift cards.
These reasons should always be considered by any businessman so that he/she can generate the right amount of profit out of it. It is not just in Nigeria that you can sell gift cards for Naira but also in other countries according to the currency. The primary objective of a gift card is to promote your business so that the people can know about the services you look to provide. This strategy can help competitive firms to gain a public recognition in the long run.