Gift cards are a great way to expand your business, but they won't work for every type of business. It really depends on what you're selling and how you're selling it. However, they can work for both online and offline businesses.
If you can figure out how to effectively implement it into your marketing strategy, it definitely will help you generate more revenue for the following reasons:
1) The Referral
Gift cards obviously encourage new customers to buy from you. Most new business will come from referrals, so adding to this is never a bad thing. Obviously, the more gift cards you sell - the more new customers you'll see coming to your store, perhaps even ones who have never heard of you.
2) The Upsell
When a person comes into your store to use a gift card, you can always encourage them to spend more than the gift card allows. Many will do so on their own - wanting to use their $25 gift card to purchase an item that costs $50 or more. Of course, the surplus is extra revenue for you.
3) The Chance of a No-Show
Don't quote me on this, but I've heard that a significant amount of gift cards are never used. This means that the person receiving the gift card either lost it or wasn't interested in using it. Either way, you as the retailer have already been paid - and now you also get to keep your merchandise.
It may sound like a big step, but give this method a shot. Anything that generates billions in revenue, is always worth looking into.
Here are a few companies that can help you develop your very own customized gift card: www.signaturecard.net, www.ecardsystems.com, and www.4colorprint.com
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