Branded gift cards have proven to be a boon to big retail and restaurant chains, generating sales and bringing in new customers. But small businesses typically miss out on capturing the benefits of using this marketing tool because of cost and technology constraints.
According to research from the National Retail Federation, 61% of gift card recipients spent more than the value of the cards, with the average gift card recipient spending an additional $29 over the value of the card. In turn, a $100 gift card can easily turn into a $120, $130 or even larger purchase, while also adding a new customer in the process.
Only about 10% of small businesses offer gift card programs, because the technology can be expensive and hard to integrate with less sophisticated small business point of sale (POS) technology and cash registers. The small businesses that do offer gift programs typically offer paper gift certificates, which create their own challenges in accounting and management.
But as cloud-based and mobile POS systems become more affordable for small businesses, the world of gift-card programs is opening up for small business owners.
For instance, NCR Counterpoint software makes loading, accepting and managing gift cards as easy as taking credit card payments. This gives small business owners an easy and affordable way to create powerful business-building gift card programs with their POS.
“Offering gift cards gives small business owners the power to easily build their business,” said Christian Nahas, Vice President and General Manager of the NCR small business group. “We’re speaking with small business owners and shoppers every day to stay ahead of business and shopper expectations and make sure we offer the tools and functions small businesses need today and tomorrow.”
Now even the smallest businesses can offer branded gift cards and empower customers to help spread the word about their stores.