Gift cards can be an excellent addition to any business, and they even have some built-in promotional benefits. There are two types of gift cards that may assist you in getting started, but you should do your research before deciding on one.
Irrespective of the sort of store you own or the size of your business, carrying gift cards in your store will surely benefit you. Why? Gift card users tend to spend more than non-gift card users. Furthermore, most people enjoy receiving gift cards since they are simple and quick to use, making them provide a gift that the recipient will undoubtedly appreciate.
Benefits Of Gift Cards for Businesses
Gift cards aren’t just for big businesses. Gift cards are a simple method for small companies to increase customer loyalty and attract new customers. The Customers may purchase gift cards for a number of occasions, such as birthdays and graduations, gratitude, or simply to say thank you.
- It helps to increase sales and revenue
- Assist in increasing business traffic
- Get new consumers
- Boost employee engagement
How to Choose the Best Gift Card Program?
Starting a gift card program may be difficult, but there are ways to get started fast. To begin with, it is critical to grasp the difference between closed-loop and open-loop.
Closed-loop Gift Cards
Closed-loop gift cards are used in your store only and are great for companies looking to attract new customers while also building loyalty and repeat business. While this is fantastic for retailers, it may seem to constrain for gift card givers who desire something more open-ended for the receiver.
- Ensures that gift card recipients return to your business to redeem them.
- Allows companies to profit from the things they purchase with the gift card.
Open-loop Gift Cards
As they operate on card network systems, open loop gift cards may be redeemed almost everywhere. For example, Visa gift cards, can be redeemed in-store, online, or over the phone anywhere Visa is accepted.
- Open gift cards are widely accessible
- Redeemed at restaurants, apparel stores, grocery stores, and more
- Open loop cards are almost as flexible as cash
Which Is the Best to Choose?
The closed-loop gift cards are a great way to promote your business and keep consumers coming back to shop. While open-loop gift cards provide more choice in terms of where they can be spent, they do not guarantee that they will be used with your business. It has the flexibility to support large and small programs. With these factors, an open-loop gift card program would be the best as it helps to promote your branding, if you are planning to introduce a gift card program to your business.
Zaggle Edge comes with 7+ corporate gift cards, which lets your employees explore world-class cashless experiences. Get started with a Zaggle edge open-loop gift card program now and contact us with any inquiries.