People get a headache when it comes to choosing a gift. Even after spending hours in choosing one, it remains unsure whether the gift would be liked by the recipient or not. This is when Digital Gift Cards provide a helping hand to online shoppers.
Digital Gift Cards or e-gift cards are similar to plastic gift cards except that the former contains a code that is delivered to the recipient’s email address when purchased online.
E-gift cards work flawlessly. The recipient can redeem the Gift Card on the Brand’s website/store by applying the Gift code on the checkout page. Once applied, the product amount falling under the gift card amount is discounted.
Did you know the total amount spent on Gift cards every year is more than $100 Billion?
Consumers love purchasing gift cards as they are cost-effective and most importantly, time-saving. Digital Gift Cards are not only liked by consumers but also by the e-commerce merchants as they are one of the most effective marketing tools for a brand. LinkedIn reports that Digital Gift Cards are growing nearly at the rate of 200%.
Let’s try to understand why Digital Gift Cards are important to your online business.
The foremost advantage of gift cards is that they provide sales growth. Gift cards capture more sales, especially during holidays or occasions. Creditcards.com reports that Gift Cards are the most requested present during the holiday season. When the pressure is high to search for a perfect gift for the close ones, people switch to the Gift card option. We can say that Gift cards are a boon to the last-minute shoppers.
Gift cards also help you drive more revenue. It is likely that the recipient having the gift card will spend more than the gift card amount. E-Gift Cards are often used as a discount by the receivers to buy products that have a slightly larger value than the gift card so that they do not have to pay the excess amount to make a purchase. According to the stats by Gift Card Granny, 72% of the customers spend more than the gift card amount while purchasing a product.
Another benefit of Digital Gift cards is increased Brand Awareness. It can often happen that the person receiving the gift card may have never heard of your Brand. A gift card gives them the chance to try out your products or services and get a better insight into your Brand. If the recipient likes your offerings, there are certain chances that he or she will buy a similar gift card for their loved ones, hence boosting your brand awareness.
Your brand logo in the gift card gets your brand noticed. Unlike physical gift cards, digital cards can be sent from anywhere to any part of the world, which gives your Brand a global reach.
Adding to the pros of gift cards is customer loyalty. To make customers stick to your store in the long run, earning their loyalty is important. And you can earn that loyalty only when you are able to keep them happy and satisfied. For the customers who did not find a pleasing experience with your products or want to process a return or a refund, a gift card, in such a situation, can ease things up and maintain a healthy relationship between your brand and your customers.
Along with Gift cards, Loyalty programs are vital too as far as customer retention is concerned. To strengthen the customer relationship, you can offer loyalty points to your customers to make them feel special and loyal to your brand.
Unlike the conventional paper or physical gift cards that were vulnerable, unsafe and could easily be lost, digital gift cards are far more secure and convenient. There aren’t any possibilities of the gift card being lost or stolen. You can send or receive a gift card without any hassle. The amount is always safe in digital gift cards.
Launch your marketing campaigns and give away gift cards. For example, you can run a contest and provide a gift card to the winners or you can ask your customers or followers to share a word about your brand or products and award a gift card to some lucky winners. This will give you high user engagement and make your brand popular.
KnowBand, one of the leading e-commerce service providers, offers the Gift Card Manager module to e-merchants who have their e-commerce store set up on the PrestaShop, OpenCart, Magento or Magento 2 platform.
The Gift Card module allows you to add multiple gift card templates based on occasions, for example, Christmas, New Year, Halloween, Mother’s Day, etc.
Make sure you are not missing out on an important occasion so that your customers return to your store whenever they need to purchase a gift card during a festival.
This is a multi-lingual module and also supports multiple currencies. Hence, you can create the gift card for various languages and also allow your customers to send a gift card to their loved ones living outside, enabling the recipient to shop in their local currency.
Try out the Gift Card Manager today!
Digital Gift Cards bring many advantages to e-commerce. They provide growth to your business by boosting your sales, revenue, and brand awareness. By looking at the growth of the digital gift cards in the e-commerce market, not having the gift card availability can scale down your business. Do not let this happen.
I hope the above-mentioned 5 benefits of a digital card have provided good enough reasons to have the Gift Card functionality on your e-commerce store. Finding trouble to set up the gift card functionality? Try out our Gift Card Manager.