Obtaining Quick Capital: The Rise of the Gift Card During COVID-19
Many small businesses are looking for ways to increase sales during this time when their stores are closed. Some small businesses have promoted their existing gift card programs or there newly created gift card programs to bring in cash. This is extremely important for small businesses that are trying to keep their businesses afloat and pay expenses such as rent. Bento Asian Kitchen + Sushi, an Asian style restaurant that offers Asian rolls, bowls, and more out of several locations throughout Florida, did a gift card giveaway over Instagram as a way to promote their brand and get individuals to share their pages. However, for small businesses that can’t afford to do such giveaways, marketing strategies need to be adjusted to promote gift cards for customers to buy now and use later.
The Business Insider recently released an article about how the coronavirus pandemic could lift gift card sales. Data shows that gift card sales are on the rise. Individuals’ purchases of e-gift cards are growing as well. Offering an e-gift card program reduces the risk of human contact. The article also mentions how consumer interest of the purpose of the gift card varies from charitable action to buying from a business they care about. Small businesses need to highlight how the purchase of these gift cards is significant in the continuation of these businesses. During this time, small businesses need to communicate to their customers how they would like to keep servicing them in the future but need their love and support through this immediate influx of cash. In essence, the gift card is for the customer but serves as a “microloan” for the small business.
Many consumers may be doubtful about whether they should purchase these gift cards as they do not know if the business will even remain open after “stay at home” orders are lifted. It is up to the small business to be honest about their circumstances. An article titled “How to sell more restaurant gift cards” states that there is power in speaking in a straightforward way. Tell your customers how important their support is for your business as this shows that they matter. Furthermore, if you are using these gift card sales to pay your workers, tell them that. Make sure you are promoting on all platforms and means to reach the most consumers and show your gratitude when possible.
At Rem and Company, one of the industries our consultants focus on is the restaurant and hospitality industry. In our research, it’s important to remember what we are selling to consumers. Restaurants like Bento have been using third-party delivery partners to continue selling their food. So while it is important that small businesses market their respective gift card programs, they should also try to market gift card programs of other small businesses or companies, especially the delivery systems. Bento’s partnership with Doordash for a giveaway of multiple $50 Doordash gift cards further communicates their brand as a restaurant supporting other partners. Another point is that food is essential and individuals have high loyalty for their local restaurants. Marketing these gift cards could guarantee that these customers continue coming to them in the long term.
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.