Retail News: Unlikely business releases gift card program
As the provider of one of the industry’s strongest retail management software programs, ChainDrive has spent a considerable amount of time implementing tools that can support the use of gift cards and other reward and business-exclusive features. Gift cards are a great way to draw business to your particular stores and it can increase sales overall. With that being said, they don’t fit every business model out there. That’s why it is surprising to hear that Facebook is releasing its own gift card, which can be redeemed at some unlikely locations. The article published on Wired elaborates:
“…the Facebook Card can be used at any of four retailers, which have basically nothing in common with one another: Sephora sells cosmetics, Target sells general consumer goods, Jamba Juice sells smoothies, and Olive Garden sells a cut-rate imitation of Italian food.”
Though the article on Wired seems to respond a bit harshly to this unique business tactic, it points out with accuracy that this release seems to be more of a way to get revenue out of Facebook’s enormous user base more than anything. Facebook in itself costs nothing, and although there is a Facebook gift shop, that’s not what the card is intended for. Essentially, Facebook is providing its customers with a somewhat flexible gift card that they can purchase and gift to someone else very easily. It’s convenient as long as the intended gift recipient is a fan of these businesses, at any rate.
Gift cards are a great way to generate business in retail because they are able to combine flexibility of use with specificity of retail destination. We’re curious to see whether other businesses with large user bases might do the same.