Why do companies offer gift cards ?

AccueilMy Must thingsWhy do companies offer gift cards ?

Gift cards or gift vouchers are a kind of voucher that can be given to loved ones so that they can choose the gift that suits them. Consumers are fond of them because they offer the advantages of speed, simplicity, and guaranteed satisfaction. If you want to know more about them, here are some reasons why companies offer gift cards.

Gift cards prevent waste

If your store sells products that appeal to the recipient of the gift card, it allows them to buy what they want. The company will no longer have to give him a gift that he probably won’t need and that will likely end up in the trash or in the attic. The gift card will also prevent item returns to the store. This option also takes the stress out of sellers of returns, exchanges, and refunds.

Gift cards advertise

Companies give gift cards to advertise themselves because they are customizable with their brand logo and color. These cards are innovative, dematerialized, packaged and also give these companies the opportunity to make themselves known to new customers. Gift cards also attract prospects to come and explore their store. This is in fact free advertising, because potential customers will have more confidence in their relatives who would recommend these stores to them by offering to buy an item there. These are customers that these brands will not necessarily reach with large commercial advertisements. A gift card is a powerful tool for acquiring new customers and retaining them.

Gift cards drive people to buy more

In general, the number of cards will not necessarily match the price of the item that the customer wants. On the one hand, he will therefore be forced to pay an additional sum or even buy the product much more expensive. Some may even go as far as buying another item. This saves the store more. On the other hand, there’s also the fact that gift card credits are usually not spent all at once. Customers, therefore, go back to these shops to buy something else. They familiarize themselves with these shops and end up appreciating them. Having a customer who returns more than once also facilitates communication and can help showcase their products and even useful new items. These customers end up appreciating them.

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Gift cards for the holiday season

Businesses that offer gift cards during the holidays are increasing their sales dramatically. In France, for example, the sale of gift cards is experiencing an average growth rate of 15 and 20%. For some brands, gift cards already represent an additional turnover of almost 2%. Most of these performances take place during Christmas, New Year, etc. Besides, these cards are managed by these companies as a separate category of what they have to offer. The latter thus has its own merchandising devoted to its communication plan and even its own creative research. This is pretty much an entire department in which these companies invest, as these cards form a specific branch of income.

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It appears that the use of gift cards represents a real asset for companies that opt ​​for them. This not only allows them to retain their customers but also to make additional sales.

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