Article #4: Gift Cards that Give Back by Tammy Mastroberte
http://htmagazine.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=3E19674330734FF1BBDA3D67B50C82F1&tier=4&id=A633217F1500423D9950721FD44CF4E8
In the article, Gift Cards that Give Back, Mastroberte discusses how the hospitality industry is using gift cards. Not only have companies began to tie their gift cards in with loyalty programs, but now when one purchases a restaurant gift card, they themselves might be eligible to receive a small gift card to the establishment. This is a method for more customers/potential customers to frequent the establishment.
In the year 2007, restaurant gift cards were a close second to sales of gift cards to department stores. This shows that restaurant gift cards are indeed very popular among consumers. The article goes on to discuss Bugatti’s Restaurant inc. and their technique in using outsourced marketing. Bugatti’s partnered up with Blackhawk Network. Blackhawk network enabled a sense of convenience for Bugatti. Now customers can purchase Bugatti giftcards off premise at Safeways stores. Overall a wide range of potential customers can be reached using companies like Blackhawk network. Overall it is apparent that gift cards in hospitality are a trend on the rise.
I believe that it is important for gift cards to circulate for restaurants. It is a good way of gaining name recognition. The strategy of using gift cards to give back is an excellent and intelligent loyalty strategy for companies to use. I personally have given restaurant gift cards to family members and it would be nice if I received a small coupon/card myself as a thank you for my purchase.
I also believe that more restaurants should follow Bugatti’s lead and have their gift cards sold at different outlets. I am from Pennsylvania and at any WaWa convenience store; one can purchase Best Buy gift cards as well as many other different gift cards. It would be an intelligent move for restaurants who can afford it to start selling their gift cards at places like WaWa and seven eleven.
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This artice i enjoyed, because I love gift cards; givings and recieving. Yes, some may say you didnt think about the gift no personal thought went into a gift card, but at the end of the day most people enjoy gift cards because you can choose who and what you want with the card. I also believe that tieing the giftcard like AMX to supermarkets or regular stores one allows people to feel special because AMX cards are one of the Hardest cards to recieve, and second this allows this person to do what they please with it. I think all restaurants show have an insentive program if i buy a gift card i should recieve something back from it.
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