Gift cards have been in existence for a long time and while some Nigerian businesses offer gift vouchers, some are still oblivious to the wonders of it. In today’s article I am explaining why Nigerian brands Need To Start Using Gift Cards, their uses and the benefits to the business.
What Are Gift Cards?
Gift cards are prepaid money cards used as an alternative means of payment when shopping. Brands and retail outlets issue gift cards to customers who use these cards to purchase products and services from the stores.
I’m sure you’ve heard or even owned some popular gift cards at some point. Brands like Apple, Walmart, Amazon, Target and others, are household names.
Gift Cards Benefit Businesses one way or another and their importance cannot be overemphasised.
Below are 5 reasons why Nigerian Brands Need To Start Using Gift Cards for their business
1. Attract New Customers:
By issuing gift cards to people, it attracts new customers. Even though they might not use it, they’re likely to regift it to someone else and they’ll purchase it at your store.
2. Aids Cashless Policy
Due to COVID-19, more businesses have followed the route of a cashless policy. With gift cards, it makes it much easier to conduct business and for your customers to make purchases without using cash.
3. People buy more with Gift cards
According to Gift Card Granny, 72% of the customers spend more than the gift card amount while purchasing a product. This is because buying items with gift cards is much more convenient and people don’t really see the amount on gift cards as “real money” LOL.
4. Increases brand awareness
With gift cards, people are more tempted to try out your products and services to get a feel of your business. With the branded card, your business name and logo is right on it so it gets your brand noticed.
5. Increase in Cash Flow
To run a small business in Nigeria isn’t easy, we all know that. So, a way to improve your cash flow on your business is to introduce the sale of gift cards. This brings about a new source of income. No matter when your card is used, you still get your money.
The importance of gift cards cannot be overemphasised and Nigerian businesses, small or large scale, should definitely hop on this wave.