The Promotional Card Blueprint: 4 Strategies for Your Redeemable Card Campaign
Take a look at the latest headlines and you'll see the growing popularity of promotional cards.
The recent launch of the iPhone 5c created a pricing war among the nation's largest retailers, including RadioShack, Wal-Mart and Target. Rather than simply cut prices, Best Buy built a solid promotional card strategy, offering a $50 redeemable card with the purchase of an iPhone. By effectively cutting the price in half, Best Buy competed without affecting margins, and in a way that drives consumers back into its stores, where card recipients typically spend 40 percent more than the value of the card.
Promotional cards offer the same benefits of other redeemable cards, yet with no stored value and the flexibility to set expiration dates and usage limitations. With the right strategies, it's possible to capitalize on complimentary cards to increase sales. Here are four top promotional card campaigns to incorporate into your redeemable card program:
1. Price "discounts": Consumers view promotional cards as a discount on price. Consider the ABC News headline, "Best Buy Drops the Price of iPhone 5c to $50" or Apple Insider's "Best Buy slashes pricing to $50." Without actually selling products below minimum advertised price (MAP), retailers advertise perceived price cuts and challenge sites that sell products at deep discounts. What's more, while many consumers will accept the cards, 25 percent may never redeem them. A Consumer Reports survey revealed that a quarter of adults still hadn't used at least one redeemable card they received the previous holiday season.
2. Re-engagement: One of the most valuable marketing resources of an online retailer is its email list. Remarketing efforts that extend promotional cards to individuals through gifts or product giveaways not only nurture prospects and reward loyal customers, but they drive them back to the marketplace. After redeeming their cards, 72 percent of recipients make a return trip to the store. And because promotional cards have no up-front costs, you don't have to worry about tying up funds in escheatment.