ADVANTAGES
admin posted in Uncategorized on March 30th, 2008

Retail Gift Cards

They are a licence to shop, a ticket to browse and a promise – you acquire the perfect gift

 Gift Cards benefit Retailers because they…

• give improved sales and insight into a customer’s shopping behaviour
• encourage customers into a store they would not normally enter
• are more likely to prompt spending to a higher value, e.g. 30% in USA
• are a sales item on display (in it’s own right)
• actually look like a product, so people who would normally never buy a voucher will buy a gift card
• give increased loyaltiy , guarantee future sales and represent a guaranteed return on investment
• can be marketed at remote or host locations
• increase sales to retailers, yet cost of handling are reduced
• have changed customers’ buying habits for the better
• are now regarded by retailers as a core product line
• result in fewer returns of items purchased
• can lead to customer spending additional funds to purchase the item they require
• are much quicker and convenient to transact at POS

 

Gift Cards benefit Customers because they…

• are far more convenient – no purchasing the incorrect gift
• are an accepted medium in large chains or grouped retailers (malls)
• can be used as ordinary debit cards
• are spender friendly – money not spent stays on the card
• are perceived to be more sophisticated, acceptable  and desireable
• SIMPLIFY   gift giving
• increase customer satisfaction because they can purchase the item they like
• are easy to manage – credit card size, and more durable than paper
• easier to carry in your wallet or purse