Gift card is just like a prepaid recharge of mobile phones. In majority of the cases, people buy gift cards as a present to someone beloved. One of the major strategy planners for the gift cards sale is Gift Cardio which relies on this concept and come up with extravagant ideas for the market competition.
This is how a customer views the gift cards. Now the question arises, why the gift cards were introduced in the market? How do marketers enjoy profit behind the scene? It attracts new customers, increase the sales in the market and strengthen relationship with their customers.
This is a short story; let us discuss the technical aspect behind this:
Closed loop cards
Today, gift card market has rose up to $129 billion, stated by CEB which is a whopping figure unimagined. The closed loop cards make sure that the marketers are well in profit and can compete in the national market. The ultimate goal being the customer’s favourite.
How gift cards become a win-win situation for marketers
On an average people provide 40% more sale to the companies when clubbed with the gift cards. Whopping 40%, I must say. Secondly, many cards expire before being cashed in, that again becomes one point of profit. Gift card exchange and return is generally not possible. These factors create a win-win situation with maximum profit, low lost sales and customer attraction.
Online gift cards
Promoting your brand through online purchase is the new trend to enhance customer’s perception towards the value. This scheme helps the customers to purchase from any corner of the world, quickly and easily.
How festival affects sale?
Most of the gift cards are known to sell during festive seasons and birthdays. Therefore, it is valuable if the business is aligned according to the season so as to promote and gain profit out of these cards.
Gift cards have revolutionized the system of earning profit. From small businesses to well established empires, everyone has one’s edge through this strategy. It is known to be an ultimate move of the marketers.