Top 5 Reasons Why Gift Cards Are Better Than Cash
Looking for a way to incentivize employees or customers? Need a reward that the recipient will truly value? Cash might be your go-to solution here, but there are some pretty compelling reasons to consider using gift cards instead.
What makes gift cards better than cash? There’s a unique combination of features and benefits that make giving gift cards a much better choice than handing out cash rewards or incentives. We’ll explore those below.
Gift Cards Are More Memorable
Cash is great, but it’s ultimately not all that memorable. After you slip it into your purse or wallet, do you even really think about it? Most people don’t. It just becomes part of their funds. They might remember being handed money, at least for a little while, but that memory soon fades.
With a gift card, the situation is different. Rather than cash that will soon migrate into their existing money, a gift card is memorable. It stands out. It’s cash value given physical form in a different way than what’s possible with paper money, a check, or a direct deposit.
Using a gift card is also more memorable. Depending on the card, your recipient can use it anywhere they like, and it acts as a repository of value. They might use the card multiple times before the amount of money it holds is depleted.
It’s a Trophy/Keepsake
Unlike cash, which disappears as soon as it’s spent, gift cards have staying power. Once the card is emptied, your recipient still has a tangible token. They can use it as a keepsake or a trophy to remind them of how they felt when you gifted it to them.
That ability to continually connect with their memory is one of the most critical elements here. Every time your recipient looks at the card, they’ll be reminded of the experience. Depending on whether you’re using gift cards as a reward or an incentive, the memory could evoke any number of positive emotions associated with your brand and even drive action – employees become more loyal while customers might be driven to evangelize on your behalf.
It’s Something Special
While a gift card is technically just cash given a different physical form, that’s not how the human brain sees it. If you hand someone cash, it’s usually seen as part of their compensation and quickly vanishes into the daily costs of living.
However, with a gift card, the situation is different. They’re not seen as compensation but as something special, and the funds are usually reserved for different uses. It’s unlikely your recipient will use that money to pay bills but instead to treat themselves or someone else.
Cash is not traceable. However, gift card use can be tracked. This provides you with a way to understand your customers better.
That information is invaluable for use in your marketing efforts, for adjusting service or product lines, and so much more. With a more accurate picture of your audience, you can tailor communications for better efficiency, deliver a better experience, and explore new options for brand building.
They Build Awareness
Gift cards are physical representations of cash, but they’re more than that. They can act as miniature billboards carrying your brand and message far outside the walls of the business. Depending on how you choose to brand the card, in the case of custom gift cards, you can build word of mouth or, in the case of using a gift card from another company, associate your brand with theirs to take advantage of their unique strengths.
Gift Cards Don’t Stop Giving
As you can see, gift cards are superior to cash in many ways. They’re versatile, powerful, customizable, and trackable, allowing you to benefit just as much as your recipient.