Types of Gift Cards and their Functions
With the convenience, flexibility, and long-term value offered by a promotional gift card, a significant number of companies use gift card promotions as part of their comprehensive, customer loyalty program. But did you know that these gift cards come in many types? The following discussion enumerates two types of gift cards and various gift card suggestions you can use on your next promotional plan.
Types of Gift Cards
According to the FTC or Federal Trade Commission, gift cards come in 2 types. These are:
- Retail Gift Cards
- Retail gift cards are issued by most retail businesses and restaurants. In many cases, these cards may be used only for the same merchants or brands that have issued them.
- Bank Gift Cards
- These gift cards usually indicate the logo of specific payment networks. Some examples of these payment networks are MasterCard, Discover, American Express, among others. These cards may be used in any establishment that accepts any of these networks.
Bulk Gift Cards for Promotions
Although traditionally gift cards are issued by businesses in order to generate additional direct sales, these cards are also being used as a promotional tool or as part of a customer rewards system. This means you can take advantage of top brands and partner with them when designing bulk gift cards. You may also use these cards as a form of rebate promotion, wherein you offer rebate incentives to your most loyal customers.
Gift Card Suggestions
Choosing the kind of gift cards to use for your promotional program usually depends on several factors. Some of the things to factor in are: your product or brand, customer demographics, and your promotional budget — especially if you’re a small-sized company.
Listed below are some gift card examples you may want to try for your own brand:
– Grocery gift cards
- Perfect for homemakers, parents, or virtually anyone who loves to prepare their own food at home. Grocery gift cards are among the most popular rewards you can give to your customers.
– Shopping or mall gift cards
- No other card allows your clients to reward themselves quite like a shopping or mall card. Whether you offer specific brands or all brands available in a store or mall, these shopping cards are sure to be valued by many of your shopaholic clients.
– Gas cards
- These gas cards are a practical way to reward your most loyal customers. You can work with a promotions company to get the assistance you need when trying to partner with gas brand such as Shell, Arco, and many others.
Gift cards can go a long way in introducing your new brand in an established market or in rewarding some of your most deserving customers. Moreover, with the availability of wholesale gift cards, it’s possible to design a card rewards system that is affordable and provides lasting value.
Planning to use gift card promotions for your next marketing strategy? Get in touch with us at Mpell Promotions so we can get started as early as today.