WHY DO YOU NEED GIFT CARD?
Gift card is a prepaid stored value money voucher which is usually issued by a retailer or a bank, which are to be used as an alternative to cash for purchases within a particular store or specified items. Gift cards are a way to make sure that customers do come back in order to use them, and shop more. It is a part of promotional strategy.
Gift cards are usually redeemable for purchases at specified stores; ad cannot be cashed out, which means you cannot ask for cash against a gift card. You have to use the card in order to avail the offer or free shopping. Some gift cards have expiry dates, which means you have to use them before they become of no use to you.
Gift cards are the second most popular type of offer which is liked by people. They offer free shopping worth certain amount, which is never ah arm to anyone. Females in US stand on second rank in using gift cards and men stand at third position.
People use gift cards they get from retailers or sometimes buy gift cards in order to present them as a gift to their loved ones. It is a good idea to present gift card as a present when you are too much confused about what to buy your friends and family for Christmas or birthday. Presenting them with a gift card gives them the liberty to get something for themselves from a large variety of items, where gift card is redeemable.
$1.8 billion are spent on gift cards in Canada last year, in UK people are spending more than 3 billion Euros yearly on gift cards. In year 2012 more than $25 billion were spent over gift cards on Christmas.
Benefits of gift cards to businesses
You might be thinking, that when you are buying worth $100 gift card for $100 then how is the business or the company earning out of it? Gift cards cost money to ship, print, maintain and manage. So, it is simple to answer. Businesses get fame on the basis of advertisement. There might be a new restaurant nearby which you have not tried yet, and you got a gift voucher for it worth certain amount. To use that gift card you will visit that restaurant. It is never possible that the total bill would be in the amount printed on your gift voucher, you will definitely have to pay something out of your pocket. So this is eventually getting business out of you. The restaurant gave let’s say $100 to you to come visit them, and you paid an additional amount of $115 to cover up the bill. They got business from you, and you got recreation.
Gift vouchers are a great idea for both the business and consumers. Consumers get to try new things and discounts whereas, businesses earn from consumers. There is always a little happiness hidden behind every gift card. So keep redeeming your gift cards and keep enjoying every bit of your life.