Introduction to Business Gift Cards

Gift cards are a great way to reward employees or customers, or to share with friends and family. Businesses now have two types of cards to choose from, plastic and e-gift cards. Plastic gift cards provide customers with the familiar and traditional gift card experience and usually have a longer shelf-life, while e-gift cards can leverage more dynamic experiences for customers.

Plastic Gift Cards

Plastic gift cards, or cards with an associated magnetic stripe, are a great way to reward employees or customers. This type of card is used for traditional point-of-sale transactions and rewards customers with points when they make purchases. This type of card typically does not expire and can be used over and over, allowing customers to save up points for future rewards.

Features of Plastic Gift Cards

• Can be used at any location where cards are accepted
• Secure payment with PIN protection
• Provide customers with reward points
• Have a long shelf-life
• Can be used over and over with points being accumulated

Benefits of Plastic Gift Cards

• Great for rewarding employees or customers
• Offers enhanced security for customers than traditional cash, at no extra cost
• No risk of reward points expiring with plastic cards
• Great way to motivate and reward customers with points for future rewards

Pros Cons

Plastic gift cards have become a popular option for businesses looking to reward loyalty and gain repeat customers. It's also a great way for customers to accumulate points for future rewards. Here are some of the pros and cons of using plastic gift cards for businesses:

• Pros:

  • Secure payments with PIN protection
  • No expiration dates with points able to be accumulated
  • Cost-effective way to reward customers, providing them with points that accumulate towards future rewards

• Cons:

  • High startup costs (initial cost of purchasing cards and setup/activation fees)
  • Susceptible to theft/fraud
  • Unable to track how customers are using their cards

Case Study 1: Popsicle's Plastic Gift Card Program

Popsicle is a popular ice cream shop located in New York City. In order to better reward customers for loyalty, Popsicle's decided to introduce a plastic gift card program. Customers were able to purchase the cards from the shop, which offered discounts and rewards. With each purchase, customers accumulated points which could be redeemed for future rewards. This program was a success, as it encouraged customers to visit the shop more often and rewarded them for their loyalty.

Case Study 2: Jackson's Cafe Plastic Gift Card Program

Jackson's Cafe is a popular cafe in Dallas, Texas. To encourage customers to purchase more from the cafe, they introduced a plastic gift card program. The cards allowed customers to save points with each purchase. Points could be redeemed for items or services, as well as discounts on future purchases. The program was a success, as it encouraged customers to come back to the cafe and provided them with an incentive to increase their spending.

FAQs

• Q: What are the benefits of using a plastic gift card?

  A: The benefits of using a plastic gift card include secure payments, no expiration dates, and increased customer loyalty.

• Q: Are there any risks associated with using a plastic gift card?

  A: Yes, there are risks associated with using a plastic gift card. The most common risks associated with using a plastic gift card include fraud and theft.

• Q: Can plastic gift cards be used over and over?

  A: Yes, plastic gift cards can be used over and over, and points can be accumulated for reward points.

Mistakes People Make

One of the most common mistakes businesses make when using plastic gift cards is not keeping track of customer spending habits. Without tracking spending habits, businesses are unable to take full advantage of the rewards program. Additionally, businesses should also ensure that their plastic gift card program is secure and that cards cannot be easily replicated or copied.

Best Practices

When setting up and implementing a plastic gift card program, businesses should ensure they are using a secure payment system that provides customers with PIN protection and other methods of protection against fraud and theft. Additionally, businesses should keep track of customer spending habits to gain a better understanding of how customers are using their cards and to ensure that rewards are used properly.

Conclusion

Plastic gift cards are an effective and efficient way to reward customers and encourage loyalty. They provide secure payments, no expiration dates, and the ability to track customer spending habits. However, businesses should remember to ensure that their plastic gift card program is secure to protect against fraud and theft. By following the best practices outlined in this article, businesses can ensure that their plastic gift card program is successful and that customers receive the rewards they deserve.