The gift voucher market is exploding. While revenue reward is high, you won’t maximise your revenue potential without careful management.
In this blog post, we look at some common disadvantages of coupons and find you the best solutions to manage these.
A gift coupon is another name for gift cards, gift vouchers, gift certificates and gift experiences. Throughout this post, we will refer to any of these definitions.
It is important to be aware of some potential disadvantages when utilising coupons.
Let’s take a look at some of the disadvantages of vouchers.
What are the disadvantages of gift cards?
While gift vouchers can bring numerous benefits to your business, they also present specific challenges if mismanaged.
In this section, we will explore some of the most common problems when selling gift vouchers so that you can be better prepared for any potential issues.
Like most industries, a specific legal requirement exists to sell gift coupons. Understanding the law and knowing how to comply is essential for business success.
In some countries, you could be heavily fined if you put the wrong expiry dates on your coupons.
Here are some of the basic legal requirements for selling gift vouchers:
If you need clarification on the laws in your area, contact a lawyer or accounting professional for help.
Selling gift vouchers with weak marketing strategies can be a big business problem.
With the right approach, businesses can reach their target audience and maximise their profits from selling gift vouchers.
A well-thought-out marketing strategy is essential for companies to succeed in this competitive market.
It should include creative campaigns, digital and social media presence, and effective customer communication.
Gift Experiences are a great way to show someone you care. But it can be a real letdown if the design is ugly.
That's why ensuring your gift card designs are attractive and current is essential.
Not only will this make your gift experiences more desirable, but it will also help ensure they will be used and appreciated by the recipient.
Unfortunately, many businesses ignore their gift card designs, making customers uninterested.
To ensure your gift cards are successful, you must invest time and effort into creating attractive and modern designs that appeal to your target audience.
Use a high-quality card for a physical voucher with a wallet. Likewise, ensure digital copies of your gift card are attractive.
How you promote your gift vouchers has to be considered very carefully. You should be aware of the disadvantages of discounts.
Depending on your business type and target audience, how you use discounting and promotions can positively/ negatively affect your branding.
If you discount too heavily and you’re in the luxury hotel market, you could potentially harm your ‘exclusive’ branding. However, if you don’t discount for significant holidays, you could risk losing all customers to your competition.
Managing customer expectations based on your voucher prices is important.
We discuss promotions and discounting heavily in this blog post here:
https://enjovia.com/how-to-promote-gift-vouchers/
Providing multiple delivery options is essential for businesses to remain competitive. When companies fail to deliver a choice of delivery options, it can lead to customer dissatisfaction and even lost sales.
With the rise of online shopping, customers have become accustomed to having various delivery options available.
Ensure your gift vouchers are available in
Make your delivery options clear on the gift card product description.
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Limited payment options can be a significant problem for businesses.
Not having access to various payment options can prevent customers from purchasing, resulting in lost revenue.
Additionally, companies may have to pay additional fees for processing payments through specific payment gateways or methods, which can add up quickly.
As such, businesses must ensure they have access to multiple payment options so customers can make purchases without hassle. Multiple options help increase sales and customer satisfaction.
A great option is to provide a payment plan. Going with payment plan providers such as Klarna, Clear Pay and PayPal Buy Now- Pay Later can increase opportunities for more significant purchases.
Using an app to manage gift cards can transform your service.
A gift card management system is the perfect solution to all your mistakes. With a system, you can:
We’ve written a blog post on how to manage your gift cards effectively. See it here:
