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The Impact of Third Party Distribution Channels


What is third party distribution?

You have seen third party distribution when you’ve walked past the gift card displays at your grocery or pharmacy but may not know it by name. Third party is a common term in the B2B Gift Card Industry. It’s the opportunity to sell gift cards in retail locations that are independent of the brand represented on the gift card. By definition, third party sales refer to the three companies involved when selling to the consumer: the brand on the gift card, the company that sells the gift card, and the company that manages the operational component of the transaction. For most gift cards programs, third party represents their largest sales channel and the greatest opportunity for consumer awareness and marketing. Why’s this? Consumer traffic!

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2015 Holiday Gift Card Trends

 

The holidays are rapidly approaching and we have the latest in shopping and holiday gift card trends for this season!

According to the National Retail Federation’s Holiday Consumer Spending Survey, consumers will spend an average of $805.65 on food, decorations, gifts, and more this holiday season, the highest amount in the survey’s 15-year history! Top findings of consumers surveyed showed:

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Non-Cash Rewards are Key to Long-Term Sales

Imagine offering merchandise or a gift card instead of a standard $10 off incentive to drive sales. Changing your discount structure in such a way may seem crazy but new research from Ifeelgoods may have you thinking differently. The research revealed that, if given a cash-based offer or a non-cash reward, consumers carried more brand equity and purchase intent than when retailers put more cash back in consumers’ pockets. The study revealed that non-cash incentives had diverse positive correlations with consumers including:

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2015 Holiday Gift Card Strategy

The holiday shopping season is already here and we thought it would be helpful to show how to incorporate gift cards, the most popular gift for both consumers and B2B organizations, into your holiday strategy. Here are 3 ways to incorporate gift cards into your holiday program.

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New Gift Card Cash Back Law in Texas

Effective September 1st, a new gift card cash back law will go into effect in the state of Texas.

Texans will be allowed to receive cash back on gift cards or gift certificates that have a balance of less than $2.50 starting September 1, 2015. In order to receive the remaining amount on the gift card, the transaction must take place in person. The law will not apply to prepaid calling cards, cards issued as part of a loyalty or rewards program, gift cards issued as a refund for returned merchandise (store credit), cards issued by a bank or an airline, and cards initially worth $5 that cannot have any value added to them. Republican State Representative and former business owner, Dwayne Bohac, was the law’s author and "...penned the bill to strike a balance between the rights of consumers and retailers."

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