Kristen Gramigna says, “Gift cards can be a simple way to increase sales, attract new customers and deepen relationships with existing ones. Here’s a look at how you can use gift cards as part of your marketing strategy.

1. Compete with national brands.

The gift card market now accounts for more than $129 billion in consumer spending, according to insight and technology company CEB. Once considered a last resort for gift-givers who couldn’t find an appropriate item, gift cards are now the most popular form of gift, and the one most requested by gift recipients, according to the experts at CreditCards.com. Many major card issuers like Visa, MasterCard and American Express offer prepaid gift cards (known as open loop cards) that allow recipients to use the card to purchase an item from any retailer that accepts credit cards from the issuer. However, CEB’s data reveals that “closed loop cards” issued and accepted by specific merchants are increasing in popularity. For small business owners, this shifting preference for closed loop gift cards presents an opportunity to compete with national brands, and use a local presence to appeal to shoppers who want to give a gift that feels relevant, personal and thoughtful”.

Why Small Businesses Should Include Gift Cards In Their Marketing Strategy

Entrepreneur

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