Why You Should Use Gift Cards as a Promotion Method


Gift cards are often used to boost sales while generating a profit since people pay now for the merchandise or services they’ll use later. They also tend to spend more when they use or receive the gift card due to the psychology that they’re getting the card’s value for free, so they go ahead and spend a few more dollars now. Here are several reasons why you should use gift cards as a promotional method.

Giveaways to getting Attention and New Customers

Gift cards can be a major promotional technique. For example, a gift card giveaway on an influencer’s blog or coupon site can generate a lot of attention, build brand recognition, and only costs you one or two gift cards.

You can also donate gift cards to charity raffles and silent auctions, too. This demonstrates your commitment to the community, generates positive press about the company, and still reaches many new customers. A perk of this strategy is that your gift card display showing your brand and products advertises the business as others study the item before entering the raffle or auction.

Another benefit of promoting gift cards to your customers is that it adds to the product mix, reducing the odds that they’re bored with the same old thing. For example, an ad for a free $5 gift card with purchase of a $30 meal may incentivize them to come in and it remains different from your standard ads for restaurant menu offerings.

Outrageous Offers to Generate Social Media Buzz

WallStreetHedge.com recently published an article about Cards Against Humanity offering Black Friday ‘nothing’ gift cards for the price of 5$. Yes, the company was advertising as a joke that you could spend five dollars U.S. and get nothing in return. It was also a form of protest against the consumerism of Black Friday, the major shopping day right after Thanksgiving. In the past, they’ve done fundraising for various charities, though they’re notable for also digging a hole before filling it in. They donated most of this money to a variety of charities, generated massive coverage of the company, and did it for free. You can’t beat that in marketing.

Protect Your Company While Keeping Customers Engaged

One way to counter repeated and fraudulent returns and still provide customer service is to give gift cards to those who bring in returns regularly. You’re also incentivizing them to return to the business and continue shopping with you. Side benefits of using gift cards in standard increments are simplicity and the customer delight at receiving a gift card for more than they’re demanding. For example, your staff can process a $21.22 refund far more quickly by simply giving the person a $25 gift card than trying to pull out the cash and properly account for it, while the customer sees that they’re receiving their money plus a few more dollars back.


Gift cards can be a great tool to gain publicity and gain customer loyalty. When used right, they can be a powerful tool for any business and a great way to spread awareness about your brand.





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