Gift cards are a key part of the guest engagement ecosystem often acting as a way that guests can share their favorite brands with others. Also, in today’s mobile-oriented world, e-gift with recharge acts as a way for guests to store value that they can use for regular orders. So choosing the right provider is key.
Gift Card Tips
Gift cards help you extend your brand presence beyond your locations by expanding your channels and meeting your guests where they are. You can also offer online or virtual gift cards. Beyond that, you can expand to third-party and discounted third-party retailers, but remember that this step adds complexity. It’s important to know the limits of your spreadsheets by tracking sales fees, discounts, breakage across programs, and money movement between locations.
Investing in a Gift Card Solution
When selecting a gift card software provider, you need to make sure that the platform delivers the automation you need, so that you can avoid having to manually track gift card costs and discounts. Discount tracking is a huge part of this automation; it helps you recognize the expense card-by-card and transaction-by-transaction.
You also need a provider that can help you track money movement (both centralized and decentralized) across different stores, franchises, and corporations.
Tips for Managing a Successful Program
Gift Card | The Differences | Comp Card |
Purchased by customer | Issue method | Purchase by restaurant |
Liability | Financial classification when issued | Expense |
Revenue | Financial treatment upon redemption | Expense |
Yes | Sales tax & income tax | No |
Yes | Subject to tax escheatment | No |
5 years | Minimum expiration period | None |
[Image: Comp cards vs. gift cards slide]
10 Tips for Making the Change
How Gift Card Programs Can Serve Your Strategy
Gift cards can be a key part of a larger guest engagement strategy. When combined with loyalty programs, ordering, and comp, they can create real and lasting value, as long as they are smoothly aligned with each other.
Listen to the Paytronix podcast with restaurant and retail analyst Ryan DiLello here.