A gift card also known as gift token or gift voucher refers to a prepaid value-stored money card which is usually used by the retailers or banks as an alternative for cash during purchases to be made within a particular chain of stores or related business. Gift cards are issued by marketers and retailers as a part of their business promotion strategy. They are basically used to lure the recipient back to the store and thus at times are also called cash cards. They can generally be redeemed while making purchases at the retail premises concerned and cannot be cashed at any other place. They may also be subjected to fees or expiry dates. One of the salient features of these cards is that they are usually anonymous and does not remain in use once the card’s stored value is exhausted.
Vouchers are considered a great way to generate more customers while the business retains the previous ones. For special service businesses and retail stores, such as day spas and bookstores, they are considered as an extremely effective tool of marketing. All you need to do is display them at the front desk or cash register for easy access. As mentioned earlier, vouchers are an effective way to attract new customers. Especially if the business accepts credit cards for services or products that people usually need or want. For example, in an electronic store, there are many items that customers do not intend to buy generally. Gift voucher encourages people even new customer, who perhaps would have never visited your shop to take a look at look at those products. This at times initiates additional purchases as well.
Issuing vouchers are often touted as a great way to increase brand awareness among general public. As the gift card is designed with the company brand and logo, it helps to spread a word about the company to a larger audience. Sometimes, people purchase this gift voucher with the purpose of gifting people on special occasions. As the receiver redeem the voucher, he/she become aware of the brand. Although these cards are set to a specific value, most of the customers end up spending beyond that stipulated amount. As the customers browse the products, they often can resist the temptation and in a way end up buying more products than they have intended to. Also, at times they cannot find a perfect product suiting the exact amount on the voucher and thus agree to pay the extra. In all these ways, sales of the company get a fillip.
A gift vouchers is an electronic card and allow partial redemption. Thus, the rest of the balance remains stored in the card eliminating cash backs. These can be used for store credit abolishing cases of fraud. Also, the vouchers are regarded to have greater perceived value. Unlike coupons, they give an empowering feeling to the customers as they feel they are carrying money that can be spent immediately. This also creates a positive impact on the company in the customers’ mind.