The Promotional Card Blueprint: 4 Strategies for Your Redeemable Card Campaign

Take a look at the latest headlines and you'll see the growing popularity of promotional cards.

The recent launch of the iPhone 5c created a pricing war among the nation's largest retailers, including RadioShack, Wal-Mart and Target. Rather than simply cut prices, Best Buy built a solid promotional card strategy, offering a $50 redeemable card with the purchase of an iPhone. By effectively cutting the price in half, Best Buy competed without affecting margins, and in a way that drives consumers back into its stores, where card recipients typically spend 40 percent more than the value of the card.

Promotional cards offer the same benefits of other redeemable cards, yet with no stored value and the flexibility to set expiration dates and usage limitations. With the right strategies, it's possible to capitalize on complimentary cards to increase sales. Here are four top promotional card campaigns to incorporate into your redeemable card program:

1. Price "discounts": Consumers view promotional cards as a discount on price. Consider the ABC News headline, "Best Buy Drops the Price of iPhone 5c to $50" or Apple Insider's "Best Buy slashes pricing to $50." Without actually selling products below minimum advertised price (MAP), retailers advertise perceived price cuts and challenge sites that sell products at deep discounts. What's more, while many consumers will accept the cards, 25 percent may never redeem them. A Consumer Reports survey revealed that a quarter of adults still hadn't used at least one redeemable card they received the previous holiday season.

2. Re-engagement: One of the most valuable marketing resources of an online retailer is its email list. Remarketing efforts that extend promotional cards to individuals through gifts or product giveaways not only nurture prospects and reward loyal customers, but they drive them back to the marketplace. After redeeming their cards, 72 percent of recipients make a return trip to the store. And because promotional cards have no up-front costs, you don't have to worry about tying up funds in escheatment.

3. Customer appeasement: It's inevitable that any business will encounter a degree of customer dissatisfaction, however, your latest customer complaint may present an opportunity. In fact, shoppers who receive a positive response to poor reviews are 186 percent more likely to make a purchase and show, on average, a 157 percent higher product sentiment, according to The Conversation Index, Vol. 6, study by Bazaarvoice. By offering promotional cards to dissatisfied customers, you can transform an operational headache into a customer-retention strategy.

4. Rebates: Historically, rebate programs served as a great way to give consumers that gentle push to buy. However, Amazon.com's same-day shipping craze and the rise of omnichannel programs like buy online, pick up in-store have demonstrated that we live in a retail world fueled by instant gratification. With traditional rebates, a customer is mailed a check or sent an open loop gift card (e.g., Visa or Amex) and rebate money is more likely to be spent elsewhere. When a shopper receives a promotional card, they're guaranteed to spend with the brand that issued it. A money-back offer does little to encourage return shoppers, nor does it capitalize on the need for immediate gratification. Exchange your rebate program for promotional cards and you'll give your dealers the flexibility to drive sales by catering to customer convenience and impulsiveness, while driving consumers back to their shopping carts.

To learn more about incorporating promotional cards into your marketing strategy, register for Shopatron's webinar, How to Incentivize Shoppers with a Promotional Card Program.

Loreal Lynch is the vice president of marketing at Shopatron, a provider of cloud-based e-commerce order management.