How Do Closed Loop Gift Cards Work?
Closed Loop Gift Cards are cards that work only at your business, which means they are unusable everywhere except at your location(s). Once a customer receives or buys a Gift Card from you, they will have to buy your merchandise to reap the rewards available through the card.
Gift Cards, in general, can be used for many different purposes. They are viewed as the ideal gift for that hard-to-buy-for individual. Read on to find out more about the uses of Closed Loop Gift Cards and how you can benefit from them.
Birthday, Wedding And Christmas Gift Cards
It probably comes as no surprise that Gift Cards are often bought as birthday presents. But, did you know that as much as 81% of these cards are purchased for just that purpose? When creating a strategy for selling your Gift Card offers, keep in mind that they will most probably be gifted as a birthday present. Then, simply put a larger focus on that.
Although Closed Loop Gift Cards are mainly used as birthday presents, they have a multitude other uses. There are countless reasons why these cards are the perfect gift for occasions ranging from baby and wedding showers to Christmas, Valentine’s day and anniversaries. Many employers have also begun to use gift cards as an incentive to reward their employees.
Make The Most Of Gift Cards
You should have a variety of offers featured on your Gift Cards for customers to choose from. Closed Loop Gift Cards are especially useful if you want to increase your customer base as much as possible since they can be used only for your business. If someone gets a Gift Card as a present, they will have to come to your store and treat themselves. If your services and products are unique and stand out because of quality or affordability, it is likely you are going to convert visitors into regular customers.
Additionally, these cards aren’t meant to be just gifts for others. In recent years, the number of people that have bought Gift Cards for themselves has increased steadily and the trend is continuing. You also have the option of making special offers on your cards, such as selling ones that are worth $50 for $40 or less.
A particularly good idea to utilize Closed Loop Gift Cards effectively is to make unique sets of them for each holiday while presenting different offers at the same time. You should advertise your cards throughout your store by putting them at the register and also training your employees to promote them to each visitor. This can lead to increasing your sales significantly, which makes Closed Loop Gift Cards an effective marketing strategy.
