Since gift cards are given as gifts, incentives and employee rewards, they are often thought of by retailers and merchants as a customer acquisition tool. Let’s say a customer doesn’t shop at a particular retailer or merchant often or at all. Yet a family member, friend or employer gives a particular brand based on it meshing well with the recipients’ needs. This gift card now becomes a new customer acquisition tool or a customer loyalty tool for the retailer.
BUT, are retailers also thinking of their own gift cards as a tool to lower operating costs? When your
customers use debit and credit cards for their purchases, the burden of the transaction fees falls on that retailer. There are no fees when your customers utilize their closed-loop gift cards in your own name.
The impressive numbers add up when you think of the difference your gift cards can make when selling
them by the hundreds and thousands in the B2B market. GiftCard Partners’s customers buy multi-millions of dollars in face value gift cards annually across all our retail brands. Those are all consumers using your gift cards versus credit or debit payment card options that rack up fees charged to you.
Check out First Data’s Perspective: The Evolution of Gift Card Strategy to see how retailers and merchants are re-evaluating their cost of payment acceptance at their POS locations.The author:
Stacey Sicurella is a 15 year marketing veteran, working in the Boston area for GiftCard Partners. Recent accomplishments include blogging with abandon, acquiring work-life balance and building amazing sand-castles with her children.