Gift Cards
The Value of Gift/Loyalty Cards Building Brand Identity: The card is basically a “Billboard in a Wallet”. Every time a card holder opens their wallet or purse, they will see the customized card and reminded that they have value on the card. Creating Customer Loyalty: The customer has the ability to leave any un-redeemed value on the card – which will prompt the customer to return to use the remaining balance. Potential Income from Breakage: The term “breakage” is used in the gift card industry for the amount of prepaid value that is never redeemed. For example: Many customer will throw away a card with low balance or if the card is inactive for twelve months.
Customers spend more & are less price sensitive: Most spends more than the value of the card. More pay retail price using plastic than with cash.
