Corporate America has been reaping the benefits for years…now the entrepreneur can do it too!

By Marc Gilenson

While watching one of the many financial news shows, they were discussing how gift cards are helping some of the largest businesses bring in new customers.  In addition to bringing in new customers, they discussed how it offers businesses the chance to use the cash paid, to purchase the gift for a number of days before having to provide the service or product.  It sounds like a great way to help finance the additional inventory that is necessary for your busy season.

Entrepreneurs Can Use Gift Cards

Imagine having people give you money for a gift card! They in turn give the gift card to a friend or co-worker who becomes your new customer.  Wow! Your customers are paying you to bring in new customers.  Not only are they bringing in new customers when these new customers come in, they will usually spend more than is on the gift card.  Gift cards should be promoted by you and your staff, and some point of sale material (signs, posters, etc.) can be the perfect use of direct mail or an e-mail marketing program.

Entrepreneurs Can Implement A Customer Loyalty Program

Let me see… I can buy from a large company that sends me newsletters, is available when I need them, and oh yeah, they show me how much they appreciate me by giving me rewards.  It’s their way of keeping me, their customer, loyal.  Based on the success of the frequent flyer program, it is obvious that Entrepreneurs should find a way to duplicate these programs.  One example of a very simple customer loyalty program is to give a frequent user card that you can put money on after your “loyal” customers spend a pre-determined amount of money, or they buy a certain product or service that you want to promote.

Entrepreneurs, Forget The Coupons

I know, it’s hard to give up what we have done for years, even if it’s not working. Just kidding, I’m sure your coupon advertising is working great, however, if you want to try something different, try giving a gift card good for $5, $10 or $20 on any of your products or services.  Don’t give a paper coupon that your customers will put with all those other coupons… give them a gift card that will be put into their wallet and used at your establishment.  Even if they don't use the card, you still get a consolation price, you keep the money!