The question of whether to go with gift certificates or gift cards is one that has plagued both small and large business owners for years. Each has advantages, which further complicates making a definitive choice. There is plenty you should know about both gift cards and certificates in order to make the decision that’s best for your specific business. If you happen to be plagued by this dilemma, answers to the following questions might provide significant help:
- What’s the difference between the two?
- What sort of data can I get from gift cards?
- Should I switch over?
Gift Card/Gift Certificate – The Difference
There are a number of differences between the two, the first being in their appearance. Traditionally, gift certificates are printed either on paper or a slightly thicker cardstock. Gift cards are usually printed on a plastic , making them much more durable in comparison. Similarly, gift certificates are usually filled out when an employee hand writes the amount on them after a sale. Gift cards can either have a face value or be reloadable cards. Gift cards will also have a magnetic stripe or barcode on them to transfer the information into your POS (Point of Sale) system, efficiently completing transactions. Gift certificates will simply have the value hand written on them, creating a cumbersome transaction.
What Sort Of Data Can I Get From Gift Cards?
Information you’ll be able to get from gift cards include tracking the current balance of individual cards, reminding customers that they have gift cards with balances remaining. Frequency of use is valuable information that you’ll be able to track through your POS software. This is particularly useful for thanking your biggest shoppers and marketing to people who haven’t shopped in a while. You can also track the trends of what your gift cards are being purchased for by offering multiple designs based off of occasion. Helping you to create campaigns around those designs that are working well and redefine those that are not.
Should I Switch Over?
It all depends on your preferences. Gift certificates are disposable, while gift cards are reusable and can be reloaded. Additionally, many businesses have noticed a significant increase in sales when opting for gift cards. The main aspect of the gift card that is often pointed out is that they are more durable and convenient. Plastic gift cards are perceived to have far more intrinsic value than paper certificates. Gift cards are essentially mini-billboards that customers prefer to carry in their wallets for long periods of time. They are also far more versatile and practical than the paper option when it comes to design possibilities.
