Why Companies Incorporate Gift Cards into Their Businesses  - Cardtonic

Why Companies Incorporate Gift Cards into Their Businesses 

Gift Cards are digital assets that are created to serve as an alternative and additional method of payment for items at a specific brand, company, restaurant, etc. 

You might have seen certain businesses come out with their gift cards and be a bit confused about the essence or need for this. After reading this article, you would realize that this is an intentional and strategic act.

What Are The Benefits of Creating Gift Cards For Your Business?

In today’s world,  businesses are looking for various means of staying relevant. One secret I need to let you in on is the fact that providing a good service or having an awesome product is not enough to keep a business afloat nowadays. To be one of the first names people look out for in your sector of business both locally and internationally, you need to do a lot more than simply create good products. 

One of the sharpest resources that can help a business currently are gift cards, and let me tell you why. 

1. Gift Cards Help Increase Sales

Incorporating this digital asset into your business means you are creating another item that can be purchased from your company asides from the product itself. For example, Starbucks which is popularly known for selling coffee made over 40% of its $29 billion revenue from its gift card sales in 2021. 

2. They Improve Your Chances For Customer Retainership: Because gift cards only serve as money at their designated stores, when a customer buys a gift card, the business is almost certain they would be back. Because the only way the customer can redeem that gift card is at their brand. Unless they resell it for cash. 

3. They are Great For Marketing: Gift cards help increase the public image and awareness of a business. A typical physical gift card has the name and logo of the brand boldly inscribed on them. The more people purchase this gift card, the wider your audience becomes. 

4 It Boosts Profitability: According to CBS News, over $2billion worth of gift cards go unused each yearfrom a business perspective, this would come as good news. “How ?” you may ask. 

For example, a customer buys a $200 Sephora gift card from the platform. And does not redeem it until it expires. This means Sephora made a full profit from items that were not even sold.

Conclusion

If you are a business owner looking for more innovative ways to improve your business’s growth, you should consider incorporating gift cards into your company.

E-gift cards also known as digital gift cards or E-codes are digital assets that serve as alternative means of payment at a designated brand. These assets serve the same purpose as regular physical gift cards. However, their looks are slightly different.  Initially, when people started using gift cards, the most common type was the physical […]

Gift Cards are digital assets that are created to serve as an alternative and additional method of payment for items at a specific brand, company, restaurant, etc.  You might have seen certain businesses come out with their gift cards and be a bit confused about the essence or need for this. After reading this article, […]

Gift cards are alternative methods of payment that help to simplify purchases at their designated brands. This digital asset is a great marketing strategy adopted by brands to promote themselves and increases sales in general.  Gift cards have now become globally adopted, meaning companies around the world in various sectors, have incorporated the use of […]

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