Gifts create a bond between the sender and the recipient. It’s a token of affection. You don’t really need an occasion to overwhelm your friends and family with gifts. Here’s a look at some compelling reasons about a digital gift card.Gift cards are a word that is now widely used. The demand for gift cards has increased dramatically in recent years. This can be owed to the growing number of occasions and popularity of the gifting culture. During festivals and special occasions, the sales of gift cards skyrocket. Furthermore, businesses recognize their employee’s achievements and provide rewards in the form of gifts.In addition to personalized gifts, gift cards can be used in restaurants, cafes, supermarkets, grocery stores, department stores, and specialty stores.
What is a Gift Card?
A digital card that can be used in your store to make purchases. Digital Gift Cards, also known as e-gift cards or electronic gift cards, are sent via email and contain a gift code assigned by the brand. When you have a regular buyer in your store, these cards are incredibly effective. Many brands offer digital gift cards in a variety of denominations. Sellers set the range, terms, and conditions for the card’s validity and usability. How does it work?When the gift card is delivered to the recipient’s email address, they can redeem it on the brand’s website by entering the gift code on the checkout page or add the amount to their store wallet by adding Gift Card Extension to your website.The product amount that falls within the gift card amount is discounted once it has been applied. Anyone anywhere in the globe can get an e-gift card.Why are Gift cards better than cash? Gone are those days when people were given cash as gifts. While cash is OK, gift cards are preferable because most gifts are now purchased online. With gift cards, you may give that special someone the option of purchasing a gift from their favorite store.Gift cards are a trendy choice for birthdays, anniversaries, and other occasions these days.Previously, people would buy the birthday boy or girl whatever comes to mind or from a limited selection of toys at birthday celebrations without knowing what that youngster enjoys. They might simply receive the gift card and use it to purchase something they desire. We believe that gift cards are superior to cash or gifts.
- A gift card boosts your chances of getting a better deal.
- Personalized gifts are preferred above generic gifts by all of us. You can offer someone a gift card for almost anything.
- You can also add artistically appealing graphics or a personalized message to your gift cards.
- It’s not just individualized, but you may use it whenever you want for something unique.
- There’s nothing better than a gift card as an incentive or reward for someone.
Benefits of Gift Cards for Businesses
Gift cards are trending among consumers because they are inexpensive and, more importantly, time-saving.Not only are digital gift cards beneficial to individuals, but they are also beneficial to businesses.
- Boost Sales and Revenue – The most obvious advantage of eCommerce gift cards is that they increase sales.
- Increased Brand Awareness – Another advantage of digital gift cards is that it helps to raise brand awareness. A gift card allows customers to check out your items and have a deeper understanding of your business.
- Digital Gift Cards are Handy and Safe – Digital gift cards are significantly more secure and convenient than traditional paper or physical gift cards, which can be lost or stolen. A digital gift card may be sent or received without trouble, and the amount is always secure.
- Gain Customer Confidence – In order to keep customers loyal to your brand in the long run, you must first earn their loyalty. And you can only gain their love and loyalty if you keep them happy and satisfied.
Industries benefiting from Gift Cards
- Corporate Health & Wellness Initiatives
- Programs for Medicare and Medicaid Compliance
- Employee Recognition and Engagement Programs
- Loyalty, retention, and referral programs for customers
- Sales and Performance Incentive Programs for Employees
- Participation and Adherence Programs for Safety
- Charitable and non-profit programs
- Programs for Vendors and Channel Partners
How amazing is it to give Gift Cards?
- You don’t have to think about finding the right gifts.
- Instant gratification
- Choice of brands
- Share with family and friends
- More commonly offered than other awards
- Purchasing in bulk is simple.
- It makes a long-lasting impact
- Your gift recipient can choose whatever they wish
- Gift cards may be used to shop both online and in-store
- Stay within your budget
- Immediate satisfaction
- Brand selection
Gift cards Market Insights
The worldwide gift cards market was worth $619.25 billion in 2019 and is expected to reach $2,076.51 billion by 2027, increasing at a 16.2 percent CAGR from 2020 to 2027. Gift cards, sometimes called gift certificates, gift vouchers, or gift tokens, are typically provided by a vendor or bank. Furthermore, gift cards are utilized as a development strategy for marketing enterprises, attracting new consumers, increasing brand recognition, reducing fraud, and increasing company revenues.Furthermore, a gift card can be used as an alternate source of money at a specific store or company store to purchase products or services. Consistent consumer engagement with shopping, thanks to fast expansion in digital marketing and commerce and an increase in the number of new technologies that give customers creative and smooth payment alternatives, are some of the primary factors of growth for the industry. Furthermore, continuous technological developments in gift cards help firms increase sales by making their product offers more distinctive and appealing, thereby boosting the gift cards market.
Impact study of COVID-19
An increase in demand for gift cards has been seen due to the severe COVID-19 health crisis, resulting in limited currency usage.Furthermore, governments in some countries have implemented lockdowns to prevent the spread of the virus. Gift card usage, particularly among companies, has grown and is likely to continue to support the gift card industry’s development momentum. So, amid the global health crisis, gift cards were one of the essential development drivers for this sector. Furthermore, since customers have expanded their use of more effective and safe payment methods for online purchasing, major companies have the potential to improve product offers by offering discounts on gift cards during a pandemic.
Some of the prominent participants in the Gift Cards industry:
- Amazon.com, Inc.
- American Express Company
- Walmart Inc.
- Google Play
- Starbucks Corporation
- The Home Depot, Inc.
- Best Buy Co., Inc.
- J Sainsbury plc
Once you’ve received your gift cards, you’ll need to promote them aggressively. Here are some suggestions for promoting your gift cards:
- Post them everywhere – The simplest (and most apparent) method to promote your gift cards is to ensure customers don’t forget about them when they’re in your store.
- Encourage additional spending – If you give a free $20 gift card after spending a specific amount of money, consumers are more inclined to buy a few extra products to satisfy the requirement. And if they give the card to someone else, you’ve gained a new customer.
- Use them to build brand recognition – This helps raise brand awareness for your company while also bringing in new consumers.
- Send a marketing email – One approach to stand out is to run a campaign informing your consumers that you have gift cards available (again, people really want them). You may target those looking for fast and easy presents with the proper email marketing solutions.
- Make them pop out – Personalized gift cards with creative text are a lot more fun and memorable than generic
- Social media to promote your gift cards – Posts regarding your gift cards should be shared across all of your social media networks. You can also try running boosted advertising to ensure that more people see these posts.
Gift cards have made their space in the digital world globally. It is considered a vital replacement of spending on gifts that the receiver may or may not like. Digital gift cards are keeping the customers away from the hassle of making decisions while choosing gifts.