Gift card and loyalty programs offer creative ways to boost sales
January 09, 2014
Gift card programs and loyalty programs may give retailers an extra boost in sales this year as consumer spending continues to recover from the Great Recession.
According to a recent article in the online financial publication The Motley Fool, some of the most successful consumer-end businesses are experiencing strong profits attracting new customers through non-traditional transaction methods. Processing credit cards is important on a daily basis. However, tools such as gift cards and engaging rewards programs can ultimately bridge the gaps in revenue many companies may experience in a difficult economy.
The marketing association Loyalty 360 cited a recent report from Forrester, a global research and advisory firm, that found that a large number of organizations are devoting more of their budgets to developing loyalty programs to increase long-term customer retention rates.
"Consumers are increasingly interacting with brands," Forrester analyst Emily Collins said during a recent webinar. "Marketers turn to loyalty to deepen customer relationships because they can better identify and more easily reward customer behavior."
Consumer spending has experienced frequent ups and downs in recent years. The Los Angeles Times said in 2014, U.S. shoppers may ultimately spend 4 percent less on electronics as opposed to last year. At the same time, the most recent holiday shopping season was one of the most lucrative for retailers in recent history. Offering gift cards and loyalty programs is an easy way for businesses to ensure sales no matter what the economic conditions.