20
by Patrick Murphy
B
udgets are tight. To stay successful, owners of sports
facilities need to keep customers coming in and to get new
customers.
This is where "marketing" comes in. And yet, if there is little
money to be spent to market or advertise, what is one to do?
Gift card and rewards programs are low-cost, effective marketing
tools that can offer brand-building opportunities and upfront cash.
The winter holidays are the busiest times for gift card sales, but
gift cards are steady sellers throughout the year for a myriad of
occasions and reasons.
First off, gift cards endorse the business. When given as a
gift, they help strengthen a merchant's brand with existing and
prospective customers. Tucked away in a wallet until it is used,
the gift card serves as a constant reminder.
Second, it's well accepted that gift cards lead to higher sales
per transaction, as customers tend to spend more than the face
value of their cards. Being able to load the card with additional
cash or, for example, returns and other credits, can also
encourage repeat visits. A preloaded card is known to encourage
frequency in visits for smaller ticket items, such as from a snack
bar or pro shop. Similarly, a points-based rewards program is
beneficial to businesses that have larger ticket items.
Representing the "next level" in retail marketing, the latter
examples are characteristic of an actual rewards program.
Both programs–gift cards and rewards–while inexpensive to
run, do require investment and concerted marketing efforts, in
themselves. For example, to encourage initial buy-in, retailers will
typically announce an introductory offer, like a preload bonus, and
promote ongoing deals, like a 30-day discount period, to maintain
the program's momentum and growth.
According to a Time article called "The Cost of Convenience –
Why you Keep Lending Money to Starbucks," consumers are
changing their economic behavior by advancing purchases to
companies that provide value. If done correctly, the return will be
worth the investment!
Patrick Murphy is Senior Director of Business Development at
Heartland Payment Systems® (NYSE: HPY), a leading provider
of credit/debit/prepaid card processing, payroll and gift/loyalty
solutions to more than 250,000 business locations nationwide.
Heartland, in partnership with the United States Indoor Sports
Association and many other state and national associations,
empowers business owners across America to improve their
businesses with a full course of business solutions. For more
information, please visit heartlandpaymentsystems.com or call
1.888.904.6773
GIFT CARD
AND REWARDS
PROGRAMS
