Motivation Blog

  • Why you Should Never Use Gift Cards Back

    Gift cards seem like an easy way for companies to incentive consumers to purchase. Despite their popularity, there are many reasons why Gift Cards are a total waste of money and really aren't that effective.

    1.) A gift cards perceived value is unfortunately it's face value. For example, when you purchase a $200 dollar gift card, it's perceived value is only $200. The best types of incentives are ones where the perceived value is much higher than their actual value 

    2.) Only 27% of Americans said they would like to receive a gift card. Reference Nov 13th 2016 article in Business Insider. It's important it motivate consumers with something they actually want and value. Most people said they would prefer cash or a tangible gift instead.

    3.) Consumers don't value gift cards because they know they will never use them.  Almost one in three gift cards never get used at all, CBS reported in 2014, citing Consumer Reports. Americans spend $32 billion a year on the cards, representing nearly $10 billion in wasted money for consumers (and pure profit for retailers).

    Caleb
    Dec 12, 2016
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