The Definitive Guide to Gift Card Marketing – Part 2

The Psychology behind Gift Cards

Understanding the psychology behind gift cards will make any business owner get very excited!

One of the most fascinating elements of gift cards is that people see the value on the card as “free money” or “found money.” The psychological effect is similar to that of a credit card, only much, much stronger!

As a result, people spend more. Someone with a $50 restaurant card will usually indulge in a dinner for two, spending $120. Another shopper in a retail clothing store with $15 left on his or her card will splurge on an item that is $15 more than they would otherwise be willing to spend.

A person who has a $5 Starbucks gift card is more likely to visit Starbucks instead of another coffee store. What’s more, they will probably use the gift card to buy an extra coffee for a friend or colleague.

Other psychological benefits include:

  • The cards create a “walking billboard” every time the carrier opens his or her wallet.
  • Cards create a bond between the customer and the store.
  • Cards make payments easy, with no searching for change for coffee, etc.
  • Cards enhance a business’s image, giving the company an image of “modernity”.

Gift and loyalty card strategies can get quite sophisticated. However, you don’t want to rely on a display at the cash to promote your program, an approach that might work for a larger company that has huge marketing budgets to drive people to their locations.

You need to be creative and aggressive with your card marketing strategies. Click on the following link to see real Card Marketing Success Case Studies.

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