Selling your products, services, and experiences as gifts may come as an afterthought for many independent retailers. After all, you've spent so much time thinking about who your target customer is, what they want to buy, and how to reach them through an effective marketing campaign.
Why would you go & complicate things by introducing a new customer segment -- those who want to buy your products, services, and experiences as gifts for the important people in their lives? Below are the 5 benefits your company can realize by prioritizing the segment of customers who want to purchase what you sell as a gift.
1. Increase Revenue
Cater to those who are already buying your products & services as gifts and incentivize others to do so. Loyal customers may have a finite number of times they can purchase your product, service, or experience for themselves. But giving your product, service, or experience as a gift significantly increases the number of times they can repeat their purchase.
2. Strengthen Your Brand
You would be hard-pressed to find a brand in the world that doesn't want to be associated with positive feelings. For example, consider the millions of dollars that Coca-Cola has spent on associated its product holiday cheer. By selling your products, services, and experiences as gifts, you are inherently associating your brand with the excitement and joy that accompany gift giving.
3. Enhance Your Customer Experience
Helping customers experience transcendence, self-actualization, hope, and belonging are some of the highest forms of value a product can deliver. If you're not convinced, read this article in the Harvard Business Review. By giving your customers the opportunity to purchase your product, service, or experience as a gift, you are helping them see their best self in action and connect with the important people in their lives. This is a gift to them and enhances the customer experience you are able to deliver.
4. Reach New Customers
As we reported in our Gift Card Statistics (2018 Edition) post, 41% of customers have said they tried a business for the first time after receiving a gift card to that business. As a result, gift sales can function as a powerful customer acquisition tool. And unlike many forms of customer acquisition, this one shows up as revenue instead of an expense!
5. Reduce Expenses
Once your gift sales strategy is in place and has proven itself, you can re-use the creative assets you've developed in subsequent holiday seasons and on gift giving occasions that come up each year (i.e. Mothers day, Father's Day, and Birthdays). This means you can reduce your marketing spend on seasonal campaigns while still achieving the revenue bump that comes from selling your products, services, and experiences as gifts.