One customer purchases a $50 gift card as a gift for his/her friend. Another customer receives a free $10 card from your business.
Both cards may contain your logo and lead a person into your business, but both have different roles.
Knowing the difference between promo cards vs gift cards may help attract new customers, fill up the slow days, and give customers a reason to come back. In the case of small businesses in Cape Coral, Fort Myers, and all around Southwest Florida, it makes sense to use both beyond just the holidays.
What Is the Difference Between Promo Cards and Gift Cards?
Gift cards hold money someone has paid
A gift card is pre-paid value. The client pays your business now and the card holder spends this value at the future visit.
Consider a customer purchasing a $75 card at a local hair salon. Even though the hair salon receives the money immediately, it has the obligation to provide goods/services worth $75.
It’s not all profit; there are still expenses that need to be taken care of once the customer arrives.
Promo cards give people a reason to act
With a promotion card, someone gets a gift or offer that your company sponsors. The card can either be a freebie, earned for buying something, or a token of appreciation.
Example: A restaurant can provide a guest with a $10 promotional card for a future meal of $40.
It aims at attracting customers for a visit or a sale. Based on the specifics of the program and certain conditions, the offer can be subject to an expiration date, spending minimum, and time restriction.
Rethink Gift Cards as a Way to Reach New Customers
Gift cards have a much greater usage than only birthdays and holiday gift giving.
A loyal customer who purchases a card for his friend is recommending the place to him because he’s saying: “I like this place. You should try it.”
Sell an experience people want to share
Make your customers imagine what gifts their cards could bring them:
- A pleasant afternoon in a salon.
- Lunch in a local café.
- Equipment for his new hobby.
- A full detail for his friend’s car.
It would be easy to recommend different card amounts corresponding to these gifts.
Make gifting easy all year
Make sure gift cards remain visible at check out as well as your website. Inform customers of the gift cards during graduation, teacher appreciation, and other miscellaneous moments.
Physical cards provide something tangible for people to give. Digital cards help people who are running late with their gifts. Card Systems provides both through its gift card solutions for small businesses.
Rethink Promo Cards as Invitations to Come Back
The more specific the problem being addressed by the promo card, the better.
When deciding on the dollar figure, consider the question: “What would I like the customer to do?”
Give a first-time customer a second reason to visit
As a retailer, you could give an $10 voucher to a customer for use on future purchases worth $50 or more.
The first trip will get them in the door, and then the incentive will give them something to think about while shopping at the store.
Bring attention to slower days
If your restaurant is quiet on Tuesdays, use an offer for that day. Your salon can try an extra push for a weekday service.
These are offers to test out; they do not guarantee extra profit. Pick proposals that suit your costs and your time availability.
Pair a gift card with a separate bonus
The phrase “Buy a $50 gift card and get a $10 promotional card” provides a purpose for each card.
The customer may give away the gift card and keep the promo card. Monitor them individually and make sure the customer understands the terms for each.
Do Promo Cards and Gift Cards Expire?
This is one difference you should never assume.
In accordance with federal gift card regulations, money loaded onto a gift card usually has to last for five years. The rules for qualifying promotional cards are different, along with their required disclosures, such as their promotional use and any expiration date.
Gift certificate laws in Florida generally prohibit expiration dates and fees after the purchase of paid gift certificates, with some exceptions. Expiration is allowed for qualifying promotional cards.
Putting the word “promo” on a gift card doesn’t change anything. Look at the program configuration first.
Start Small and Track What Works
Pick one goal and one offer. Staff should be able to explain it in one sentence.
Then follow up on the number of cards being distributed, the spending by your customers, and their repeat visits. Also include the cost of the offer while analyzing its success.
Do it before your next slow period or holiday season comes around so that you have enough time to educate your staff.
Card Systems offers customized solutions for gift card creation and support services for your local business. If you wish to implement these recommendations, please contact us at Card Systems to receive promotional cards, gift cards, or both for your business.
