28 Mar
With billions of dollars being spent annually, gift cards have become an incredibly popular present item. Nonetheless, a lot of merchants continue to make typical errors in their gift card marketing, sales, and management strategies, which can have a bad effect on consumer satisfaction and revenue. Shops may prevent losing potential sales and consumers by being aware of the most common problems- so let’s talk about some mistakes that stores make with gift cards and how they can do better.
#1: Not Properly Displaying Gift Card Pricing and Details
One mistake some retailers make is not clearly displaying important information about their gift cards. This includes not showing the amount someone needs to pay for each gift card denomination. It also includes not stating if there are any additional fees charged, such as activation or transaction fees. Giving unclear pricing information upfront can mislead consumers and cause disputes later on.
Retailers should make sure that all gift card price is clearly marked wherever gift cards are sold in order to prevent making this error. They should have signs listing the different denomination amounts available for purchase and the exact price for each one. Any applicable fees should also be clearly posted. Providing transparent pricing right away prevents misunderstandings down the road.
#2: Not Giving Enough Time for Gift Cards to be Used
Some retailers only let gift cards be used for a short time period before they expire, such as 6 months or 1 year after purchase. However, the recipient of a gift card may not use it right away for various reasons. Setting too short of an expiration date results in disappointed customers when their gift cards are no longer accepted.
To prevent this, retailers should set reasonably long expiration dates, such as 2 years or more from the purchase date. They might also consider not having any expiration date at all. If an expiration must be used, clear policies should communicate this and remind customers ahead of time so the card gets used prior to the cutoff. Giving ample time avoids frustration over expired cards.
#3: Not Clearly Stating Gift Card Redemption Policies
The redemption policies for gift cards can confuse customers if not clearly spelled out. This includes rules around partial redemptions, redemption of card balances below a certain amount, replacement cards, and other aspects. Leaving such policies vague leads to consumer disputes when issues arise.
Retailers must ensure they have signage or paperwork accompanying all gift cards listing the full terms for redemption. This involves stating if partial balances can be used or if there are minimum balances required. Policies on getting replacement cards should also be disclosed upfront. Clearly communicating all redemption rules ensures customers fully understand their gift card rights.
#4: Not Having Easy Ways to Check Gift Card Balances
A customer can be uncertain about their capacity to pay for an item in full if they are unaware of the remaining balance on their gift card. People are reluctant to use cards since some businesses do not disclose balance information, either over the phone or online. This risks leftover balances going unused.
To avoid this problem, retailers ought to allow gift card balances to be easily checked through various methods. They can set up balance-checking portals on their websites where card numbers get entered. Calling a customer service line to obtain balances should also be an option. Providing balance transparency encourages greater gift card spending.
#5: Letting Gift Cards be Used Only In-Store and Not Online
In today’s digital age where more shopping happens online versus in physical stores, limiting gift cards to just in-store use misses opportunities. Customers may want to use cards for website or app purchases but are unable to. This wastes potential sales.
Allowing gift cards to be redeemed both in stores and online maximizes their convenience and sales potential. Retailers should integrate gift cards into checkout systems on their digital platforms. Enabling multi-channel use retains more gift card spending within the business.
Also Read: What can you do with in-store fulfillment to grow your sales and services?
#6: Not Promoting Gift Card Programs Enough
Customers won’t buy or accept gift cards as gifts if they are uninformed that the shop offers them. Some companies don’t use online and offline marketing platforms to sufficiently promote their gift card programs. Gift card sales therefore go below potential levels.
To fix this problem, retailers must routinely highlight gift cards in advertising, flyers, emails, and other outreach. Gift card displays near store entrances also bring attention to the program. Running gift card promotions at holidays helps introduce more people to the options. Greater promotion raises gift card visibility and lifts sales volumes.
#7: Not Training Employees Well on Gift Card Policies
Staff working in customer service roles need proper training so they fully understand their store’s gift card details and can assist buyers or users. However, some retailers fail to equip employees with correct gift card knowledge. This leads to inconsistent service when policies are explained differently. Poor training can damage the customer experience.
Retailers should require all personnel to answer questions about gift cards to complete comprehensive training modules. Periodic refresher sessions ensure up-to-date understanding. Training covers proper handling of purchases, redemption, balance checks, and other tasks. Making employees gift card experts helps customers smoothly.
#8: Not Accepting Gift Cards From Competing Businesses
To attract more customers, some retailers accept gift cards from competing businesses to encourage cross-shopping. However, not doing gift card exchanges limits the possibility of new sales. People holding cards for other stores may not visit due to the perceived lack of options.
Accepting redeemed or exchanged gift cards from competitors introduces these potential customers to offerings they were unaware of previously. Clear policies are needed regarding exchange rates or fees charged. But enabling gift card transfers attracts consideration from customers who wouldn’t otherwise stop by. It boosts sales conversion rates.
#9: Not Giving Credit for Partial Gift Card Balances
If leftover gift card amounts under $5 are non-redeemable as policy, the remaining values go to waste. But not providing a cash or store credit choice for small balances upsets customers. This makes recipients reluctant to accept low-balance gift cards thinking nothing can be done with the scraps.
As an alternative, retailers should allow redeemed balances under their minimum use limit to instead receive cash back or in-store credit for the amount owed. Customers feel good getting something of value regardless of how much may be left over. It improves recipient satisfaction levels.
#10: Not Combining Gift Cards On One Payment
For larger purchases, customers have to separately pay portions with different gift cards instead of lumping cards together. This divides transactions into multiple steps and holds up checkout lines. Making the experience drawn out lessens customer convenience.
To streamline the process, point-of-sale systems should permit loading multiple gift cards onto one total during payment and automatically deducting from balances in descending order. It pleases customers with fast, seamless payments that juggle gift cards simultaneously. Employees save time too.
#11: Not Having Gift Cards Mobile-Optimized
Today’s shoppers rely on smartphones for many tasks including shopping online and in stores. If gift cards are not mobile-friendly, customers face unnecessary obstacles accessing balances, making purchases, or other key functions on small screens. Frustration may turn people away from gift card usage.
To remedy this concern, retailers must ensure gift cards work flawlessly within mobile apps and responsive websites. Large buttons, simple menus, and streamlined data entry allow easy navigation. Gift cards should also permit scanning via apps for quick in-store transactions. Going mobile-first eases gift card adoption among technology-savvy demographics.
If you own or work at a store, you want customers to be happy with their gift cards every time. The last thing needed is unhappy people causing a big headache! So keeping gift cards clear and easy to use protects the store’s name and gets more shoppers spending that gift money in your business.
One way stores can help with all this is by using the right point of sale or POS system. Hana Retail builds gift cards right into a store’s website too so people can shop online easily wherever they are. A good choice to keep everything smooth and customers satisfied- sign up FREE today!
