Free Gift Cards Bring in More Than They Give Away
Expedia is one of dozens of major retailers, both physical stores and ecommerce sites, that are using giveaway gift cards to spur sales at a time when retail numbers are dismally low. Analysts say these gift cards – some of which have hefty value – are helping retailers by drawing in more customers at a cheaper rate than traditional ad campaigns. For gift card suppliers, giveaway cards may become a stable source of revenue from retailer clients.
The success of giveaway card programs hinges on the two concepts that the cards will first draw in a larger number of customers and then that consumers will spend more than the initial value of the card. Thus far, studies show that consumers spend more than the value of a gift card, whether it was given as a gift or as a retail incentive.
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August 27, 2009 at 6:06 PM
Some giveaway cards are not used to draw people into a store, but rather to encourage them to buy more than they are already buying. Those cards can be issued in exchange for a large purchase, Many electronics stores go this route.
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