Gift Cards: Create Flexible Store Credits to Boost Cash Flow and Loyalty
Photo by Rob Laughter on Unsplash
Why gift cards matter for your business
Gift cards act as prepaid store credits customers buy now and redeem later. They bring immediate revenue and invite repeat visits. When set up right, gift cards also act as a compact advertisement. They encourage spending above the card value and create natural word of mouth as people give them to friends and family.
How to create a gift card in Pinnacle
Creating a gift card is straightforward. Follow these steps to set one up and start accepting prepaid balances.
Step-by-step setup
- Open the Gift Cards section and click Create Gift Card.
- Enter a clear name and a short description that explains how the card is used.
- Define redemption rules, usage restrictions, and eligibility criteria. These determine where and when the card can be used.
- Customize the visual: choose a color gradient or upload your own artwork from Media Storage.
- Set the values customers can purchase and finalize the card.
Design and customization tips
Visuals matter. A well designed gift card feels more valuable and is more likely to be gifted. You can either create a simple color gradient or upload branded artwork. Use your logo, clear typography, and a color palette that matches your brand.
Rules, restrictions, and redemption
Be explicit about redemption. Specify where the card works, whether it applies to online orders, in-store purchases, or both. Add any restrictions up front, like expiration, single-use limits, or exclusions for certain products.
What values should you offer?
Offer multiple preset values to cover casual gifts and bigger purchases. Common tiers are low, medium, and premium. This makes buying easy and increases the chances customers will spend more than the card amount.
Key benefits
- Improved cash flow: Customers pay upfront, giving your business immediate working capital.
- Secured sales: Prepaid balances convert into future visits and purchases.
- Increased average order value: People often spend more than the card value when redeeming.
- Brand loyalty and referrals: Gift cards get your brand into new hands and encourage repeat business.
How gift cards support social recommendations
Gift cards are an easy way to create recommendation chains. When someone gives a card to a friend, that friend discovers the business with a partially funded incentive to visit. That leads to new customers without additional advertising spend.
Best practices
- Keep terms clear. Transparency reduces support requests and builds trust.
- Promote gift cards around peak seasons and events.
- Combine gift cards with targeted offers to encourage higher redemption rates.
- Monitor redemption patterns and adjust values or messaging based on what sells.
Getting the most from gift cards
Use gift cards as both a revenue tool and a marketing channel. Track sales, watch how recipients redeem, and iterate on artwork and value tiers. Small tweaks to design or redemption rules can boost both sales and loyalty.
Frequently asked questions
How do customers redeem a gift card?
Customers redeem by applying the card at checkout, according to the redemption rules you set. You can allow use online, in-store, or both. Make redemption steps clear in the card description.
Can we add usage restrictions and expiration dates?
Yes. You can add usage restrictions, eligibility rules, and other conditions when creating the card. Be transparent about expiration or excluded items to avoid confusion.
Will gift cards improve cash flow immediately?
Yes. Customers pay upfront for the card value, which increases immediate cash on hand. That payment becomes revenue when the card is sold and a prepaid balance when redeemed.
What card values should we offer?
Offer several preset values to suit different budgets. Typical tiers are low, medium, and high. Multiple options make it easier to purchase and increase the chance of customers spending above the card value.
Next steps
Create a gift card, set clear rules, and design a branded look that feels valuable. Monitor how cards sell and how recipients redeem them, then refine values and wording for better results. Gift cards are a simple way to increase cash flow and bring new customers through the door.
This article was created from the video Gift Cards: Create Flexible Store Credits to Boost Cash Flow and Loyalty
