Gift Cards and Loyalty Programs Can Increase Your Profits!

You should always expect more than just low rates from your credit card processor.

In fact, if your small business isn’t setup with gift cards and a loyalty program, you could be missing out on a big piece of profit.

From large chain stores to nail salons to your local hardware store, more and more establishments are offering gift cards as an option for their customers. Not just for the holidays anymore, they are a great way to increase revenue and profits for all retailers, restaurants and other merchants year round.

Gift cards can bring a lot of benefits to your business, and can encourage consumers to continue shopping at your business.

They also:

Increase revenue due to consumers usually spending more than what’s on the gift card.

Help you acquire new customers because a gift card is just that, a gift!

Increase impulse purchases because again, customers are more likely to spend more than what’s on the card and may end up making a big purchase.

Reduce cash back on returns because since they paid with a gift card, store credit is what’s usually offered on a return, not cash.

Build awareness of your business through word of mouth. They are usually passed from one person to another and along with bringing in a new customer; it’s also spreading the word about your business.

A loyalty program can be just as important as being able to accept and sell gift cards.

Loyalty programs can help retain existing customers because of how they provide incentives for customers to come back, but they also help bring in new customers. If your loyalty rewards program is enticing enough, new customers who stop by your store will more than likely return.

Loyalty programs can also be used to move customers into different tiers. Those who are constantly in your store and driving sales up can find themselves getting better rewards. Those that only shop when you have sales and discounts can be filtered out.

With loyalty programs you can build relationships, target your best customers, and create advocates out of them. word-of-mouth from fellow customers is much better than any promotional marketing you may run.

The bottom line with these two features you can drive spending up, while keeping your customers happy. They can be used to help keep customers shopping in your place of business, and can also be used to bring in new customers.

If your current credit card processor is only offering you a decent rate and none of the benefits of a gift card and loyalty program, it’s time for you to make a switch today! Head over to http://www.nationaldebitcardnetwork.com for more information.