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When it comes to the search for a voucher management system, it is paramount that you begin by understanding the two basic types of retail vouchers. This is crucial because understanding what you will be using the vouchers for is what will help pick the right system for your business. In the case of retail vouchers, you mostly have to pick from two options: cash voucher and discount voucher.
Cash voucher or coupon
The cash voucher is a piece of paper or a digital code that can be used in exchange for cash. Simply put, a cash voucher, may it be online or paper can be used in place of money. This is one of the most widely used type of voucher. Retailers love it because consumers prefer this one over a discount vouchers.
This type of voucher is a great as a gift and is more popular in the gift segment too. Giving a gift can be hard. This is mostly because you never know what the recipient might be interested in. Considering giving cash might not be well received by most people, vouchers make the best option. Giving cash vouchers as a gift makes a great choice for many reasons. The main reason is because when you give it to someone; you will be giving him the option of purchasing what he really wants.
Therefore many retailers market this type of voucher as a gift voucher. This helps the retailer to now only increase sales by selling the gift voucher but he also increases probability of having a new customer on board to whom the voucher may be gifted.
Discount voucher or coupon
The second type of voucher is the discount voucher. Just like its name depicts, the voucher makes it possible for the user to get a discount on items in a store. This could be a discount to specific items or all the items being offered by the retailer.
Just like the case of the cash voucher, the discount voucher can be given as a gift. It helps the user to save money when shopping in specific retail stores. Today, the use of discount voucher has gone further. Retailers widely use it as a tool for rewarding loyalty and promoting certain products or services.
Before the introduction of vouchers, the main challenge people had when it came to giving gifts is deciding on what to gift. Retailers have managed to solve this problem while at the same time create opportunities to boost their business. Retailers can now design vouchers that redirect attention to specific items or to specific stores. This helps redirect the attention of customers to specific products and services or outlets. Consumers can either qualify for free vouchers or purchase a gift voucher from their preferred retailer.
Using vouchers is easy but benefiting from them is a whole different story. Retailers need to invest a considerable amount of time and money when picking and refining voucher management systems. Having an effective system is how get to achieve more from cash and discount vouchers.
Prem is the CEO of Inspire Pte Ltdand Inventrik Pte Ltd. He has over 40 years of experience in area of digital economy, digital commerce, retail , IT, Engineering and innovation with many prestigious local and multi-national companies and the companies he founded. He has helped over 100 companies with their digitalisation journey and has been invited to speak at many national & international forums.