Are you a business owner who is deciding on which method to boost their loyalty program? Where do you begin, or at what stage do you implement changes?
When you’re thinking about ways to boost customer loyalty, most business owners initially think of loyalty programs. But gift cards are also an effective tool to enhance customer experience and foster brand loyalty, especially when they’re paired with a rewards program.
Gift cards are a solution chosen by many points of sale and service companies, particularly in the retail sector. Their popularity is due to the wide possibilities of application, easy use in various situations and additionally – the convenience they offer to the customer. If you are wondering whether to introduce this type of solution also in your company, read our article. It contains information on scenarios in which the implementation of gift cards can bring the most benefits, both in B2B and B2C businesses.
Gift cards in B2C business – what are the benefits of using gift cards
B2C business gift cards can have different uses. Above all, however, they are an additional product available to customers. In many cases, they are a great alternative to buying a specific item or service as a gift – especially in this day and age where we are spoilt for choice. In this situation, the card often plays an additional role. Thanks to the gift cards, the new client has the opportunity to get acquainted with the products and services of your company, whilst seeing that your company has been recommended.
This is not the only case where gift cards become a tool for building a brand image. Do you have business partners? Make sure they issue gift cards that can be used in your business. As part of this form of cooperation, you can gain a wide group of new recipients just through reciprocation. An additional option that is worth considering is adding gift cards to advertising materials, or offering them as a prize in contests, sweepstakes and other games. A potential new customer has a chance to get to know your company, and because he/she receives the benefit from the very beginning, they will be more willing to take advantage of its offer. In most cases, it will also increase the spend amount than what was provided for in the gift cards limit.
Gift cards are also a good alternative to discounts or refunds. In the first case, you can add them as an incentive for further purchases. Even a small amount can turn out to be a good motivator that will attract people to your brand. In the second scenario, the customer receives his return in the form of a card with a certain amount on it. As a result, cash is retained in your company, and the recipient themselves are compensated by a product or service.
Will gift cards prove themselves in B2B businesses?
Looking at these examples, you can see how many opportunities are offered by cards when skillfully used in B2C business. However, they also can apply to B2B businesses. It is a convenient form that allows you to settle accounts with contractors in a slightly different model than the traditional one.
There are two solutions – the first one is the payment of a certain amount by your business partner at the start of the selected period of cooperation. Thanks to this, its employees get cards with a specific pool of funds to spend. The whole process is easy to monitor, and you can be sure that the funds will not be spent at your competitors, pretty cool eh?
Another proposed model is that the settlement at the end of the period, after using the gift card. This solution ensures that the customer will use the options prepared by you. It is used, inter alia, in the case of popular fleet cards issued by petrol station networks. Although in this case, the money will later be in your company a little later, the gift card becomes a guarantee of using your services.
Implementation and handling of gift cards
As you can see, gift cards offer many possibilities. Do you want to use them this year before the gift-buying period begins (Christmas, Black Friday etc)? Contact us. We will prepare a comprehensive plan and implementation, including both technical aspects, as well as employee training and preparation for proper communication of card introduction. At Sparta Loyalty, we always strive to be one step ahead of the game.
