Choosing The Gift Card Program That’s Right For Your Business
You want to get the most out of the holiday season and you’re probably well aware that shopping begins in November, or earlier (gasp!).You know what means? Gift card season is already on it’s way. What you may not know is that not all gift card programs are created equal. You’ll want to do your homework before choosing a gift card program type that’s right for your business. Better get on that!
Actually, don’t worry. As an early holiday gift, we’ve done the homework for you.
There is a big difference between closed-loop and open-loop cards.
Closed loop gift cards are an easy way to promote your business and get customers both old and new to keep coming back. While open loop gift cards offer flexibility regarding where the cards can be used, there is no guarantee that the cards will be used at your business.
If your business is a single brand, closed-loop gift cards may be the best place fit. The following are just a few reasons why.
- They save you money. No transaction fees.
- Your business keeps all the money from the sale of each card.
- They’re customizable. You can design your cards to reflect your brand.
- They’re trackable. You can track and report on gift card activity from your point-of-sale.
- They keep customers coming back. Recipients of the gift card return to your business to spend.
- They bring in higher profits. Shoppers tend to purchase more than what the value of the gift card covers.
If your business manages multiple brands, open-loop gift cards might be right for your business.
- They can be used across different brands.
- Cards can be used just like cash or credit.
- Requires an activation fee for the user or purchaser.
- No reporting or integration with your point-of-sale.
- No control of where the card is used, so there’s a chance your business might not receive profits other than the activation fee.
There’s really no good reason for not implementing gift cards. They’re convenient, are inexpensive to obtain, help bring in new customers, and help keep sales steady. With those points in mind, a closed-loop gift card program will likely provide the most benefits for your business.Nōwn allows you to create and sell your own omni-channel closed-loop Gift Cards that customers can then redeem in-store and online with no transaction fees. When you are looking to take the next step in implementing a gift card program, we’ll get you started.