5 Reasons to Use Gift Cards in 2017
Visa gift cards, American Express, MasterCard, and Discover are just a few of the top gift card promotion ideas that Mpell Promotions offers. Additionally, we offer travel gift cards for brands such as United, American, Starwood, Marriott, Southwest, and Wyndham, plus shopping gift cards for retailers such as Nike, Walmart, Target, Macy’s, Nordstrom, and Sears. But our gift card promotions don’t stop there—we also offer electronic promotions for top names such as Amazon, GameStop, Best Buy, and Apple!
When you decide to offer your clients gift card promotions, Mpell Promotions is a promotional fulfillment partner you can trust to ensure that your most loyal customers are rewarded quickly, efficiently, and cost-effectively. But why would you offer gift card promotions over other customer incentives? We’ll highlight the top 5 reasons why!
Why Offer Gift Card Promotions?
According to the Incentive Federation, Inc.’s Incentive Marketplace Estimate Research Study, gift cards are the most dominant form of consumer rewards, aside from consumer loyalty programs. And according to Access Development, 45 percent of customers prefer gift cards or prepaid debit cards as a consumer incentive. But why exactly do clients prefer gift card promotions over other types of incentives and rewards? Here are 5 reasons why:
- Gift cards keep customers engaged
- Gift cards encourage customers to visit a store to make a purchase using the gift card
- Gift card promotions are more effective than offering cash rewards
- Gift cards create higher conversion rates at lower prices
- Gift cards create loyal, ongoing customers
Now, let’s highlight these 5 reasons in more detail
According to Red Crow Marketing Inc., Americans are exposed to as many as 4,000 to 10,000 marketing campaigns and advertisements in a single day. From billboards to vehicle marketing to email campaigns to Facebook ads, many consumers are experiencing an overwhelming amount of advertisements than they could possibly know what to do with.
However, carefully crafted campaigns in the form of gift card promotions can help to create customer engagement—standing out above the other advertising campaigns that may not be as targeted.
Driving Store Visits
While gift cards do reward clients for their business, they are more strategic than that. You see, gift cards are meant to reward customers by getting them to visit a store—either on-site or online. Gift cards help to drive store visits, create repeat customers, and increase the size of each individual purchase.
Once you bring a customer into your store or treat them to a free or discounted product or service, they’ll be more likely to see what else you can offer them.
More Influential Than Cash
Plain old cash rewards may seem to go along with gift card promotion ideas, but the two are different rewards that present quite different benefits. Research shows that customers view cash rewards in the same way they would view a paycheck, and they will use the cash rewards to spend money on bills or necessities instead of using the rewards on the company who gave them the reward.
On the other hand, gift cards are more of a reward that allow consumers to purchase something they wouldn’t normally buy with their own money.
Higher Conversion Rates
Not only are gift card response rates much higher than other forms of marketing, but they are also more valued and increase consumer spending. Gift card recipients typically end up spending more than the face value of the gift card. Plus, customers are more likely to return to the store again in the near future after redeeming a gift card incentive.
Not only are gift cards an attractive and cost-effective reward that put you ahead of the competition, but they will also bring you increased future business as well. Customers who use gift cards are more likely to tell their friends, family, and colleagues about their reward, which will likely bring additional customers in to make purchases. Before you know it, you have a few new loyal customers from one inexpensive gift card promotion!
To learn more about our gift card promotion ideas and to see for yourself just how effective gift cards can be in growing your business, contact Mpell Promotions today. Our rewards are just what you need to bring your company success in 2017.