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News
Gift card giveways
boost sales, Aite says
erchants are always looking for novel
ways to incentivize consumers to shop,
and shop more often, at their stores. A
M new report from consultancy Aite Group
LLC spotlights prepaid card strategies that have proven
to be effective in promoting loyalty and incremental
lifts in sales.
The April 2014 impact note, Prepaid Mania: A Merchant
Affair, said merchants are beginning to push gift card
programs more aggressively, and with good reason.
Aite reported that the U.S. prepaid card sector is now a
$200 billion market, comprising roughly 5 percent of all
retail purchases. And merchants have keyed onto this
trend.
"They really embrace it," said report author Madeline
Aufseeser, Senior Analyst at Aite. "When you see
what has happened with prepaid cards from a retailer
perspective over the last couple of years, we've gone
from a couple of cards hanging on J hooks to major
displays, sometimes multiple displays in a store. It's
becoming like the cereal aisle or the soda pop aisle."
For ISOs and merchant level salespeople, the type of
prepaid card, and corresponding program, should be
predicated on merchant type. "I think there are certain
strategies that are going to work in certain environments
and other strategies that are not," Aufseeser said. "So, it
depends upon the retailer and what they do and how
they do it, and what their goals are."
Aite's research disclosed that 46 percent of merchants
surveyed view gift card giveaways as a top strategy
to implement over the next 24 months. Aufseeser said
promotional programs via which merchants give away
$5 gift cards, for example, have proven to be an effective
strategy for certain types of retailers, including big-box
stores, electronics retailers, quick service and casual
dining restaurants, and department stores.
"Those kinds of merchants would fare very well by
giving away a gift card as an incentive, because the
consumer is going to come back," Aufseeser said. "If
you give away a $5 gift card, the consumer is going to
come back and spend seven or eight dollars." Smaller
operations, such as horror shops, nail salons and
family restaurants, can also take advantage of gift card
giveways, Aufseeser added.
Gift cards rule
In partnership with gift card distributor InComm, Aite
surveyed 35 executives at a variety of national and
15
Gift card giveways
boost sales, Aite says
erchants are always looking for novel
ways to incentivize consumers to shop,
and shop more often, at their stores. A
M new report from consultancy Aite Group
LLC spotlights prepaid card strategies that have proven
to be effective in promoting loyalty and incremental
lifts in sales.
The April 2014 impact note, Prepaid Mania: A Merchant
Affair, said merchants are beginning to push gift card
programs more aggressively, and with good reason.
Aite reported that the U.S. prepaid card sector is now a
$200 billion market, comprising roughly 5 percent of all
retail purchases. And merchants have keyed onto this
trend.
"They really embrace it," said report author Madeline
Aufseeser, Senior Analyst at Aite. "When you see
what has happened with prepaid cards from a retailer
perspective over the last couple of years, we've gone
from a couple of cards hanging on J hooks to major
displays, sometimes multiple displays in a store. It's
becoming like the cereal aisle or the soda pop aisle."
For ISOs and merchant level salespeople, the type of
prepaid card, and corresponding program, should be
predicated on merchant type. "I think there are certain
strategies that are going to work in certain environments
and other strategies that are not," Aufseeser said. "So, it
depends upon the retailer and what they do and how
they do it, and what their goals are."
Aite's research disclosed that 46 percent of merchants
surveyed view gift card giveaways as a top strategy
to implement over the next 24 months. Aufseeser said
promotional programs via which merchants give away
$5 gift cards, for example, have proven to be an effective
strategy for certain types of retailers, including big-box
stores, electronics retailers, quick service and casual
dining restaurants, and department stores.
"Those kinds of merchants would fare very well by
giving away a gift card as an incentive, because the
consumer is going to come back," Aufseeser said. "If
you give away a $5 gift card, the consumer is going to
come back and spend seven or eight dollars." Smaller
operations, such as horror shops, nail salons and
family restaurants, can also take advantage of gift card
giveways, Aufseeser added.
Gift cards rule
In partnership with gift card distributor InComm, Aite
surveyed 35 executives at a variety of national and
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