Gift cards are a unique present for all occasions and not just the holiday season. From millennials to adults, gift cards are widely given and appreciated among people of all ages.
From a customer perspective, choosing the right gifts for family and friends can be quite challenging especially with a plethora of options available these days. A gift card seems to be the ideal solution for a last-minute present. Consider this, according to a survey by Gift Card Granny on 2000 US consumers in 2020, nearly 87% of respondents confirmed they purchased a digital gift card. This affirms the popularity of gift cards among customers.
For entrepreneurs and SMBs, gift cards provide endless opportunities to boost sales and raise brand awareness among potential customers. But are they equally effective for eCommerce businesses? Let’s find this out through a series of questions!
Like anything else, gift cards have some advantages and disadvantages which make them perfect presents for one and not so ideal for others.
However, before diving further into these detailed assessments, let’s consider the benefit of gift cards from a business perspective.
For sure, gift cards have significant potential to drive incredible growth, increase customer loyalty, and further expand brand awareness.
Look at the following gift card statistics to see the popularity of gift cards among modern consumers:
In whatever aspect, the gift card still remains in popularity and an influence among users. As a result, eCommerce businesses witness regular changes with this gifting trend. With a probable gift card marketing strategy, companies can:
The primary reason for the popularity of gift cards is their flexibility. In other words, gift card recipients can freely choose whatever they want to purchase in their favorite brand.
As card buyers, you are relieved of the pressure to find the right gifts for your family and friends, especially when you don’t have any knowledge of what the recipient would love.
Gift cards can be used to show your appreciation or love for the recipient, whether it’s your best friend or coworker.
In a nutshell, most people are happy when receiving gift cards because:
Ever been in a situation when you do not have enough time to find and prepare a proper gift for the special ones? In such circumstances, a gift card can be your lifesaver.
The most significant thing is that you can buy gift cards from major brands online.
Reasons for calling gift cards the last-minute present are:
Therefore, if you are a last-minute shopper, get online to purchase a gift card. You can buy and send a digital gift card at any time, even during the holiday season when most stores are closed.
Imagine, you have to buy gifts for many people with whom you might not be too close. So, giving gift cards as a present is much more comfortable. Why?
For special occasions such as Christmas, purchasing gifts for family and friends is unavoidable. So, it is best to purchase a gift card from a branded store based on the recipient’s interest. It won’t take much time/effort and you can decide the value of your present by budgeting a specific amount for each gift card.
The convenience of giving gift cards is undeniable. However, gift cards can’t deliver the same emotion and spirit as traditional gifts. Compared to pretty boxes covered in shiny paper and bows, gift cards seem less thoughtful especially to ones that enjoy the excitement of opening a surprise gift. A shopping card feels more like an inconsiderate decision.
Remember that gift cards, for sure, remove the guesswork of giving a gift, but might also indicate an absolute lack of enthusiasm on the giver’s part.
Before buying a gift card, you should define the type of cards offered by the gift card providers to eliminate any problems or misunderstandings in the future.
Basically, gift cards are of two types:
Unless you already know which store they frequently shop from, play it safe and send a Mastercard or Visa gift card.
According to Bankrate Credit Cards:
Unlike an actual gift, people can easily forget about the gift cards taking up space in their wallets and miss out on their actual value.
At the same time, there are many reasons for the appearance of unused gift cards. Some are forgotten and left to expire while others get lost.
For eCommerce businesses, unused gift cards come with both advantages and disadvantages:
Scammers are targeting shoppers who purchase gift cards. They run bots through the retailer’s online system and search for any cards with a dynamic balance.
And once they successfully steal your gift cards’ information, they will resell them over the internet at much lower rates. In other words, you can lose all the balance on your gift cards without knowing it.
Albeit a highly convenient present for users, a gift card showcases a real lack of effort especially when the giver doesn’t even follow basic gift etiquettes. This makes the present seem less meaningful than actual gifts and is unappreciated by the receiver.
Though lots of people love getting gift cards, some perceive them as a thoughtless gift. They might think you don’t even want to waste time picking out an actual gift.
As an eCommerce merchant, you can turn lackluster gift cards into profit using these tips below:
Finally, to start a potential and cost-effective program, the first step you need to take is to select a probable gift card system. Try integrating a gift card extension into your store to perform different activities related to gift cards. This will help:
Don’t hesitate to launch a gift card program for your eCommerce store and get the most out of this additional strategy to boost sales during holiday sessions. Save yourself the trouble and just go for a Gift Card system.
It will help you facilitate the management process and run your gift card program smoothly on the website.