How Gift Cards Improve Retailers' Bottom Lines
Merrill Brooks Smith of Fort Lauderdale, FL serves as the chief executive officer of InComm, a payment processing firm located in Atlanta, GA. Since founding the company in 1992, Merrill Brooks Smith has expanded its offerings to include state-of-the-art digital payment solutions for health care, transportation, and retail loyalty programs such as gift cards.
Gift cards serve as a marketing and sales tool that retailers can use to boost their brand profile and revenue. Individuals who purchase gift cards for others have the potential to introduce a product or company to a new customer. Gift card programs also lack the profit-loss potential of other loyalty schemes, such as discounts and special offers.
Once a gift card is purchased, the retailer retains the revenue, whether or not the item is ever redeemed. Furthermore, when most buyers redeem their gift cards, they spend more than their value. While retailers can choose to create physical cards, digital platforms can also create instant gift cards using codes. In this way, launching a gift card program can cost very little up front and offer a higher payoff.
