You're
probably thinking, here we go again somebody is trying to sell me something
that I really don't need. I'm sure it will benefit them, but will it benefit
me? Firstly let me say that my company, Solutions Ink does sell gift and
loyalty cards. The market out there while huge is certainly not for anyone. Who
then are these cards good for?
These cards
are great for chain stores with multiple locations and for stores with very
loyal repeat customers. Why are these stores prime candidates? First let's
examine the large chain stores. Today more than ever people's disposable time
is very limited. Buying a gift for someone takes time and effort in researching
a product the person might enjoy , and then finding the right size and color.
Today everybody is looking for convenience. It takes 2 minutes at a cash
register to get a gift card. Firstly the price you want to pay is exactly the
amount on the card. If the recipient wants something more expensive, they can
simply add onto it. The recipient can spend his time finding the right size and
color and shop when he or she wants the item.
As far as
the store goes, they know that once they've sold you the gift card, the sale is
coming. Their cash flow is improved because the cash sits in their bank account
t'ill you use it. More importantly a growing percent of people who receive
these cards never use them. Lastly, most people end up spending more then their
gift card in the store. The question really isn't why should I invest in gift
cards but rather why I am I not running out to purchase them?
Another
great reason is dut to the technological revolution. With bar codes and mag
stripes affixed on the back of the cards, the stores are now able to capture
important information about the end user. They can see who uses them, what they
use them for and create new marketing campaigns targeted to these people and
uses to get an even larger percent of these people's discretionary income.
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