How To Manage a Gift Card System for Your Small Business

Did you know that over half of consumers opt for gift cards when shopping for the holidays or a birthday?

Gift cards are a convenient option for the giver and the recipient. They’re easy to pick up at the last minute while still being more personal than a cash gift. Plus, they allow the recipient to pick out something for themselves, preventing any awkward potential returns. 

If you don’t offer gift cards in your store, you’re missing out on big sales — both from customers purchasing gift cards and shoppers who stop by to redeem their gift cards. 

Implementing a gift card system for your small business might seem complicated, but it doesn’t have to be. In this blog, we’ll tell you everything you need to know to boost your sales by offering gift cards. 

Why Should Your Small Business Sell Gift Cards?

The next birthday, holiday, or anniversary is always around the corner — meaning that your customers always have someone to shop for. Offering gift cards at your small business makes it easy for them to pick up a convenient yet personal gift during one of their regular shopping trips. 

Not only will they be able to check off their gifting to-do list, but your store will reap the benefits of larger overall sales thanks to their gift card purchase. 

But the benefits of launching a gift card system for your small business don’t stop there. Each gift card your store sells is an opportunity to attract a new shopper and convert them into a loyal customer of your business. 

In fact, 61% of gift card recipients spend more than the card’s value when they stop by a store to redeem it, giving your sales an even bigger boost. 

How To Sell and Accept Gift Cards in Your Retail Store

Now that we’ve covered why you should implement a gift card system for your small business, let’s discuss how. 

Selling and accepting gift cards can seem daunting. You have to create custom cards with your store’s branding, activate them after purchase, track their balances, and redeem them during the checkout process. 

You can’t manage these tasks on your own, so you need a retail software solution to help. 

When it comes to choosing software to manage your store’s gift card system, you’ve got two main options: an add-on solution dedicated to gift card management or a retail point of sale (POS) system with gift card management built in. 

Let’s take a closer look at each of these options and explore which is the best fit for your small business. 

Option 1: Gift Card Management Software

Some software providers focus exclusively on gift cards, giving you a platform to issue gift cards, activate them, and track their balances. 

These gift card management systems act as an add-on to your business’ POS solution, meaning you’ll have to use two software solutions for your regular and gift card sales. 

While supplemental gift card management systems might be pricey and difficult to integrate, their primary benefit is that they allow your customers to purchase e-gift cards, which can be more convenient and more environmentally friendly than traditional cards. 

Option 2: A POS System With Built-In Gift Card Management

Your other option for managing your small business’ gift card system is to choose a POS system with these features baked in. 

Instead of relying on separate software to manage gift cards, your POS system can handle gift card transactions from start to finish, making purchasing and redeeming them as easy as any other sale. 

We recommend this option for a few key reasons: 

• Cost-effectiveness: Instead of investing in supplemental gift card management software, you only have to budget for an all-in-one POS solution. 

• Efficiency: Choosing an all-in-one solution simplifies your back office operations, allowing you to use one cohesive system rather than two separate software tools. 

• Easier checkout: A POS system with built-in gift card management allows for a seamless checkout process, whether a customer pays with a gift card or a traditional payment method. 
• Reporting: Relying on your POS system to issue gift cards means you’ll have access to accurate, insightful reports on your gift card sales. 

Even if you decide to wait until later to launch a gift card system for your small business, choosing a POS system with integrated gift card management will make it a breeze to start selling them in the future.

How To Maximize Gift Card Sales 

Getting the logistics right is just one ingredient in a successful gift card strategy; you also need a plan for enticing your customers to buy them. 

Let’s explore a few sales-boosting tips for your small business’ gift card system. 

1. Create Custom Gift Cards for Your Store

Your gift cards should act as advertisements for your store. Each time a gift card recipient opens their wallet, they should be reminded to stop by your business and make a purchase. 

To reinforce your store’s brand identity, gift cards should include your logo, a place for the giver to write the card’s value, and brand-specific colors. If you have the time and budget, you might even consider offering different variations of your gift cards to align with seasonal holidays. 

To secure custom gift cards, partner with a POS provider that allows you to send in your custom gift card design for printing and activation. 

2. Display Gift Cards Prominently

Your customers will likely look for gift cards near the checkout counter, so make sure your gift card placement meets their expectations. 

Your gift card display should be eye-catching, brightly colored, and surrounded by creative signage to draw shoppers' attention as they wait in the checkout line. Remember to regularly update your displays to align with the seasons and remind customers that gift cards make great holiday gifts. 

To create an even more convenient experience for your customers and encourage them to purchase one, consider including items like small gift bags and a curated selection of greeting cards near your gift card display. 

3. Train Your Staff

After launching a gift card system for your small business, your next step is to train your staff. 

Your cashiers should know how to activate gift cards after purchase, check the balance of a gift card, redeem them at checkout, and recommend them to customers shopping for a gift. 

Since holidays are a huge time for gift card sales and redemptions, plan refresher training before upcoming celebrations to ensure everyone on your staff is up to speed on how to sell, promote, and redeem gift cards. 

4. Promotions and Bundles

Want to give your gift card sales a major boost? Then strategically plan promotions to encourage your customers to buy them. 

Here are a few deal ideas to try out around the holidays or when sales are slow: 

• Bonus gift cards: When customers purchase a certain amount in gift cards, you can offer them an additional gift card for free. This promotion boosts your gift card sales and gives your customers another reason to visit your store. 
• Bundle deals: Want to increase turnover for a particular product? Consider offering customers a $5 gift card when they purchase these items in bulk. 
• Gift card giveaways: Gift cards are an excellent incentive for social media giveaways. To increase your store’s online following and gain a new customer, plan a giveaway in which you select one of your active followers to receive a gift card.

A POS system with built-in gift card management should make it easy to set up these promotions. 

Launch Your Gift Card System With POS Nation

Ready to attract more customers, make more sales, and increase your profits by implementing a gift card system for your small business?

Then you need a powerful retail POS solution on your side. POS Nation is an all-in-one point of sale system designed to help small businesses like yours operate more efficiently and profitably. 

With a comprehensive set of features like gift card management, inventory tracking, and detailed reporting combined into a user-friendly package, POS Nation has everything you need to take your business to the next level. 

See POS Nation in action by scheduling a live demo, or get an instant quote using our build and price tool.