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A Proven Marketing Tool

Promotional gift cards are a proven marketing tool, and a sure way to either gain new customers, or to stimulate existing customers to return. They are similar to gift cards in that they hold a credit value that can be redeemed the retailer’s store, but unlike traditional gift cards, promotional cards are not purchased by customers, but given away free by the retailer, either in the form of plastic cards, or in digital format.

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The aims of the promotional cards is to generate a positive buzz and excitement around a retailer’s brand, increase the impact of marketing, and ultimately increase traffic to the store.

Merchants who use promotional cards do so for several reasons. They may want to run a seasonal promotion to encourage sales, incent customers to shop during quiet retail periods, advertise to a new product, generate a positive buzz around the brand, or attract new customers. Ogloba promotional cards can be customized in terms of design, format (plastic or virtual), conditions of use, term of validity, value and so on, meaning retailers have full control over their promotional campaigns, and can focus on any, or all of these reasons.

How does it work?

Promotional gift cards can be used for special marketing and promotional campaigns, centered around the promise of mystery awards. A retailer may decide to invest in a marketing campaign that involves giving away gift cards to customers as they leave the store, thereby establishing a reason for them to return. The cards that are issued and distributed consist of gift cards with various face values. Most will have a low value such as $5 (small enough to make the scheme affordable for the retailer, but large enough to make the customer see redeeming them as worthwhile), a few will have a value $50, and a very limited number will be worth $500. The promotion can promise a minimum value for all card recipients, and generate excitement around the hope that some of them (including “you”) will get a high value card. The key of course, is that the value of the card is not printed on the card itself, and the customer only finds out the value of their card when they return to the store and use it to pay for their next purchase. This encourages customers to return to the retailer so they can take advantage of the “free money” they have been given. This addresses the ultimate aim of the promotion i.e. to get people into the store, and buying goods.

What are the benefits for retailers?

While customers will not assume they do have one of the highest value cards, they will be excited by the fact they might have one, and will use the guaranteed card value, in this case $5, as a minimum spend. In any case, the cards stimulate extra sales simply because customers have to come back to the store and make a purchase to find out the value of their reward, and redeem it.

A wider advantage is that the customers are given a positive impression of the retailer because they have received a free gift, and there is excitement around the promotional campaign that the customer is likely to share. Positive word of mouth marketing is invaluable for retailers, as it is trusted by consumers more than other forms of advertising.

Promotional cards are a valuable marketing tool because their effectiveness can be accurately measured. Once programmed to track a promotion, the cards’ barcode, when scanned, allows merchants to know such information as how many cards are being redeemed, where, and how much the customer spends when redeeming the card. As customers know that they are guaranteed a minimum $5 value on their card, the “uplift” generated can be measured.