Coupons, which often are printed on low-quality paper, are generally perceived as having low value since they primarily offer cents off a product or a percentage discount off a lower cost item. Consumers receive a seemingly unending supply of coupons every week, yet very few are redeemed because of their unappealing nature.
Gift cards are something that people go out of their way to purchase, and they can be loaded with a specific dollar amount. Retailers usually don’t place restrictions on the date by which a gift card must be used, so other than limiting its use to specific retail locations, the cards are basically perceived as cash. And because the cards resemble credit cards, they are automatically considered more valuable.
Offer card is a distinct term used by Dukky for our mailed incentives. The value of the offer card lies somewhere between that of a coupon and a gift card. Although these cards take the form of a gift card, they allow retailers to be more flexible with their offers, whether it’s a percentage discount, a dollar amount off when a specified total is purchased or dollars off in general. Several studies have shown that offers taking the form of gift cards are perceived by consumers as being more valuable than coupons, thus producing a higher redemption percentage. If you would like to read two bite-sized summaries, please refer to the following links:
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