5 Benefits of Awarding a Gift Card vs. Cash
Happy Thursday! We’re excited to be talking about prizes this morning as awarding them to happy winners might be the most exciting part of our job! Today, we want to talk about gift cards and the reciprocal values awarding a gift card will have on your brand. Here’s a few reasons why awarding a gift card for your next sweepstakes or contest might be a win for you too.
IT’S LITERALLY A GIFT
We will never deny cash as being a pretty awesome prize to award. We can all use it right? The difference with a gift card though is that it really does feel like a gift. With cash, we deposit it into our bank account and may be compelled to use it for things that aren’t very fun – like paying bills. But, a gift card allows (and actually kind of forces) the winner to make the purchase of something tangible and personal...and that’s pretty memorable.
THEY’RE GUILT FREE
Remember those bills we were just talking about? A gift card takes the guilt out of buying for winners. And that translates into a better winner experience, which translates into some pretty great PR for you.
That phrase was so fun to type. But, the truth is, a branded gift card reinforces a positive association with the brand which in turn creates lots of loyalty and...warm fuzzies.
AWARDING A GIFT CARD CREATES REPEAT BUSINESS
Half of consumers will come back to the store to deplete gift cards, which means more opportunities for you to sell. And, most consumers buy more than the gift card value putting new sales in your pocket.
COST EFFECTIVE DISTRIBUTION
If you have small admin budget for fulfillment but can’t do it on your own, gift cards are a cost effective solution for you. Because it is as simple as placing the gift card in an envelope and sending off with a congrats letter, materials and packing charges are minimal. Shipping costs are determined based upon the gift card value. And, e-gift cards are even more cost effective to fulfill because there are no shipping costs.