In e-commerce and digital finance, gift cards and coupons have come in handy in helping change the status quo, bringing forth a faster, easier and more engaging avenue for businesses and customers to keep value and loyalty to their brands and products.
In this article, we shall be checking out the major differences between gift cards and coupons in terms of usage, benefits and more.
What Are Gift Cards?
Gift Cards are pre-loaded, stored-value cards acting like "a digital wallet" at specific retailers or across various brands. They offer flexibility and are ideal for gifting or personal purchases.
Think of a parent gifting a general store card for their child's back-to-school shopping or a coffee shop offering reloadable gift cards for loyal customers.
Having said this, FlipEx offers the best platform to convert gift cards to Naira. The FlipEx gift card to Naira platform is not only fast in payout but also secure to safeguard users.
What Are Coupons?
Coupons on the other hand are promotional codes or vouchers offering discounts or special deals on specific items or categories within a store.
They incentivise immediate purchases but have limitations. Imagine a grocery store issuing coupons for its new vegan burger line or a clothing brand offering discounts on winter jackets during a seasonal sale.
It is quite important to understand the difference between coupons and gift cards because choosing the right option unlocks maximum savings and purchase flexibility for the customers, and businesses, and understanding the advantages of each tool optimizes marketing strategies and customer engagement.
Major Differences Between Gift Cards And Coupons
Below are the core differences between Gift Cards And Coupons for consumers and businesses.
Functionality
Both items are quite useful to both the customers and the businesses. Gift Cards are useful because their prepaid stored value is redeemable for goods or services. They can also be open-ended (storewide) or closed-loop (specific brand/store). Very often, gift cards are very handy because they are cash alternatives.
Coupons on the other hand carry promotional incentives offering discounts or special deals. They usually apply to specific products or categories within a store and may require minimum purchase amounts or activation steps.
Flexibility
When it comes to the flexibility of use of both items, gift cards come in handy as they offer high flexibility in purchase choices within permitted scope; can be used for multiple transactions until the balance is depleted; and also have the potential for gifting and resale.
Coupons on the other hand have limited applicability based on terms and conditions. They are often one-time use for specific purchases and have a lower potential for gifting or resale value.
Cost and Value
Checking out the cost and value of these items, we can deduce that gift cards can be purchased at face value, representing direct monetary value. They also have the potential for unused balances to expire or lose value and can be perceived as a higher-value gift option due to flexibility.
Coupons, in contrast, often come as free or are acquired through promotional activities. They also offer the potential for significant savings on specific purchases and can be perceived as valuable depending on discounts offered and limitations.
Strategic Use
When it comes to the strategic use of these items, gift cards are a very effective marketing tool for businesses to attract and retain customers. They also offer convenience and perceived value for customers to earn. Furthermore, they can be a source of revenue generation even if the card remains unused.
Coupons in their own right help drive sales and customer engagement through targeted promotions. They also come in handy in increasing average order value and encouraging the trial of new products. Coupons are known also for having the potential for higher conversion rates but lower overall revenue per customer.
How Consumers Can Maximize Value On Gift Cards And Coupons
For Gift Cards, customers should look for bonus offers during purchase periods or loyalty programs that add value to their cards. Opt for open-ended cards for maximum flexibility and consider resale websites if unused balances linger. For example, FlipEx offers resale on gift cards like Apple, Google Play, American Express (AMEX) and more.
Coupons should be stacked with ongoing store promotions for deeper savings. Utilize coupon aggregator apps to find the best deals and set price alerts for desired items. Remember, not all coupons are created equal – compare discount percentages and exclusions before swiping.
How Businesses Can Leverage Incentives Through Cards And Coupons
Restaurant Gift cards can fuel future reservations and revenue by tempting diners back. Clothing stores: Partner with travel agencies, redeem gift cards for vacations, and expand reach.
Coupons promoting flash sales with exclusive coupons create urgency and help boost immediate purchases. Personalized offers based on purchase history entice new product trials and raise average order value.
Final Thoughts
As technology evolves, these incentives will continue to adapt and shape the future of the retail landscape, offering exciting opportunities for value and engagement. So, the next time you encounter a gift card or coupon, remember it's about choosing the right tool to unlock the best value for your unique needs. And if you would love to convert the giftcards to Naira, you can check out what FlipEx offers on Gift card to Naira conversion.