Gift cards comprise big business in today’s retail environment – estimates projected that up to $55 billion was spent on gift cards in 2005. But gift card programs don’t have to be a marketing tool only reserved for big business. Introduced as an alternative to paper gift certificates by large retailers in the mid-1990s, gift card programs have found a place in many small businesses including Internet businesses and one-location retailers.

The benefits of a sound gift card strategy are not reserved exclusively for large businesses; our focus is on small to medium businesses. Small business owners are just as interested as large retailers in attracting new business and putting cash in the bank, and gift/loyalty programs allow them to do that in a way that offers their customers flexible new ways of bringing them additional business.

Gift card programs are a valuable and growing sales/marketing tool for businesses of all sizes. According to Bankrate.com’s annual gift card survey, shoppers with a gift card in hand will spend, on average, 140% of the card’s face value. Gift cards typically generate two trips to the retailer’s location: one for the card purchase and another for its redemption. More than half of gift card redemptions occur in January, a month usually known for returns and a significant drop in sales following the holiday buying season. The National Retail Federation estimated that every American consumer spent an average of over $88 on gift cards in 2005 – and with good reason: surveys conducted by numerous card-issuing companies indicate that consumers rate a gift card a “9” on a 10-point satisfaction scale.

For many small businesses, a gift card program is a low-risk, high-payoff option for increasing revenues. Cards take up little space and are simple to display and promote. Most merchants are able to cover the cost of their gift card programs by selling just a few cards per month. Although gift card program benefits are more obvious, many small merchants are discovering that simple loyalty programs, which reward repeat customers while helping keep them faithful, provide the same big-business benefits previously not offered by small businesses. Any merchant with a compatible credit card terminal can now offer the same branded, customized gift and loyalty programs once reserved for their larger, better-financed competitors.

Merchants ready to make the move to gift/loyalty card marketing will benefit from card programs, merchandising materials and marketing guidance offered by us. Small to medium businesses can leverage our experience with the small merchant while enjoying important features as customized cards, robust reporting available 24/7 on the Web, and valuable POS marketing tools and products. Our goal is to offer gift and loyalty card programs that enhance revenues, are simple to buy and incorporate, and reflect the needs of the merchant.

For more information contact Jaclyn Greenberg at 888.581.5050 x 208 or email jaclyng@cynergyusa.net.