Gift Card Programs
Gift certificates started appearing in stores in the 1930s, but the first electronic gift card, one that mimicked a credit card, was introduced in 1994 by the department store Neiman Marcus. The next year, Mobile Oil Corp developed the first successfully marketed gift card called the Mobile GO Card. At the same time, Blockbuster started displaying gift cards at the counter to entice impulse buyers.
Many wallets today are packed to the brim with plastic cards. Most of these cards, however are not credit cards. In fact, much of the plastic in your wallet are gift cards. Maybe you have two,one worth $20, one worth $75. Maybe you have seven, all worth around $1.95 each, because you never know when you might need. You may even keep it because you plan to refill it. Whether you think they’re useful or just space taken up in your wallet, gift cards have become a part of our culture and they’re here to stay.
As a small to mid-sized merchant, the idea of a gift card program may not have even crossed your mind. You may think that you have to be a huge conglomerate in order to see any of the benefits of selling gift cards. Fortunately, you would be mistaken.
First, gift cards are a revenue stream only you control. All other forms of payment are accepted by your competitors. By selling someone a gift card, you are making an agreement that they,or the receiver of the gift, will come back and use that money at your business. Plus, the card is paid for up front. If the consumer gives the card to someone as a gift and it never gets used, the money they spent to purchase the card doesn’t get refunded, it’s yours.
In addition, your current customers become an unpaid sales force. You have a regular customer who needs a gift, quick. He/she will buy a gift card, give it to the receiver, and you’ve got a new consumer who wouldn’t have otherwise even walked by your store. With gift cards, you have the most efficient hand to hand advertising and incentive program.
Gift cards are the largest selling items for over 80% of the top100 retailers in the U.S. Luckily, ICS offers credit card machines that can handle a gift card program in order to help you join that group.
- Our easy application process takes about 5 minutes
- Accounts are usually approved within 24 hours.
- Save time & eliminate hours of bookwork each week as QuickBooks does the accounting for you.
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