FreeMonee Network Inc. says gift cards are a better incentive than coupons for motivating customers. It has created a system to provide gift cards to retail customers through their banks and credit unions.
So why don’t merchants scrap coupons and replace them with gift cards? As he explained in an October 19 interview, that’s the question that spurred CEO and president, Gadi Maier, to co-found FreeMonee, “a platform that gives gifts from retailers to consumers through their banks.” Maier concluded that this was an industry that could be “transformed through science and technology.”
Retailers report that average lift from gift cards can range from one-third to twice the face value of the card. The gift card can give a customer a license to spend, but there are differences in strategies, costs, and accounting that may make coupons a more effective choice. Retailers need to have a variety of tools for customer motivation. Also, it is important post-CARD Act not to refer to incentives as “gift” cards, as they are treated differently for compliance purposes.
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