I need a gift card for my business

savvy connects brand curve
September 22, 2021

I need a gift card for my business

“I need a gift card for my business” is a thought that crosses the mind of many retail and restaurant businesses, both large and small. But where do you go from there? Actually launching a gift card takes some consideration to ensure that you have maximum opportunity for whatever the future brings. In fact, it’s even a consideration before you decide on your platform provider, because as your business expands there’s a whole world of gift card opportunity that you will not want to miss.

So before we get into the nuts and bolts (unless you just want to scroll down), let’s take a step back to remind ourselves why gift card is so important.

  • They are consistently the #1 requested gift for consumers. Rather than being a last-minute purchase, gift cards are the considerate gift that allow the recipient to purchase what they want. Everyone knows and loves gift cards
  • They are increasing self-purchased by consumers that want to treat themselves or to budget their spending
  • They encourage additional spend. Depending on the business, consumers typically spend 50%+ above the gift card value
  • Gift cards attract new customers. Typically, the purchase involves two customers –the buyer and recipient – and they gift card funds can only be spent with your business. Gift cards introduce new customers, some of whom will be life-long customers
  • Gift cards are the currency of your brand. They are billboards that represent actual revenue, rather than just clicks and likes
  • Gift cards help with cashflow, as there is typically a lag between gift card purchase and redemption
  • Gift cards can also be used for merchandise return/customer appeasement and promotions, all of which keep funds within your business and trigger additional customer spend
  • OK, that’s probably enough, although there are additional advantages…

So, stepping forward again, “I need a gift card for my business”. What do I need to consider?

For most brands, the most impactful, cost-effective option will be a “closed loop” gift card. That means that the gift card can only be redeemed in your store/restaurant and online environments. Closed loop cards give you total control over your own program.

In 2020, digital gift card sales increased exponentially. They are now a customer expectation. This means you need to be able to redeem digital cards both in outlets (if you have stores/restaurants) as well as online.

Gift card regulations will apply. These will differ between countries and between states. We’d recommend reaching out to legal professions to ensure that the rules of your gift card program comply with local regulations. Legal advice will ensure that where the gift cards are issued, will be to your maximum advantage. Savvy does not provide legal advice but contact us https://www.savvyconnects.com/ and we can refer you to legal experts.

Gift cards are a target for fraudsters. Ensure that your program utilizes the latest anti-fraud techniques.

“OK, OK, so these are all important, but I need a gift card for my business”. So, where can you look? For small business, there are some easy options…but they can come with some drawbacks for the future:

  1. Your acquiring bank – some banks offer a gift card option with scheme card processing (Amex, Visa, MasterCard etc.)
  2. Your POS provider – POS providers can include a gift card option within the POS functionality

These may be perfectly viable options, but think about how your business might grow in the future and have these considerations in mind:

  • Are your gift cards redeemable across any and all of your store and online environments? Savvy has met retailers that have ended up with two gift card programs, one that worked on one website, another one that worked on another website and in stores. Imagine having to explain that to customers
  • If you change your bank or POS/platform provider, how easy will it be to move your gift card program? You don’t want to make future business decisions while being held hostage by your gift card program
  • Where do gift card sales come from? Of course, they will come from your store/online customers, but 40%+ of gift card sales now come through external third parties We’ve seen retailers running on eComm platforms with no connectivity to these external markets leaving them trapped

Who are these external markets? From the gift card malls that you will see in major grocery stores to the employee benefit systems that offer discounted gift cards, there is a huge market opportunity that is growing year over year. Without access to these lucrative gift card markets, you instantly reduce significant opportunities to reach new customers and increase sales

So, if you are a larger small business, medium sized or even a multi-brand multinational, looking for a gift card solution…or looking for something better for your current gift card…you need a professional, focused gift card solution provider. Savvy can support you and take your program where it needs to go.

Savvy provides:

  • Small and large programs around the globe (see our case studies https://www.savvyconnects.com/case-studies)
  • Giftcard expertise to help you maximize your gift card business
  • Access to the profitable third-party gift card sales networks
  • Physical and digital gift card solutions
  • Integration from any open POS/Online platforms
  • The latest in gift card security
  • A range of pricing options to support your business need
  • Lots more…(that’s enough bullets)

We hope this has given you some things to think about as you consider the wonderful world of gift card. We hope that you’ll take away that gift card does need consideration and that, what might seem like an easy option, often comes with severe limitations.

We hope you’ll talk to Savvy https://www.savvyconnects.com/request-a-sales-call