Over the years gift cards have gone from a last-minute gift idea to a massive revenue generator for businesses of all sizes. During the holiday season, eCommerce sales were up more than 12% and digital gift cards accounted for nearly 20% of holiday gift card sales in 2020. During that same time, 80% of consumers reported receiving a digital or physical gift card making the cards a significant source of revenue.
Digital Gift Cards, also referred to as e-gift cards or electronic gift cards are a great way to expand your business’s ability to boost revenue generation during the holiday season. This is why you should add offering digital gift cards to your small business.
3 Benefits of Offering Digital Gift Cards to Your Customers
Customers love gift cards because they are cost-effective and quick. Not only for the people but digital gift cards provide ample benefits to a brand as well. In fact, the most requested holiday gift in America once again is gift cards. Gift card sales have grown to more than 7%. The growth was supported by a 4.5% increase in digital gift card sales and the rapidly increasing popularity of curated cards, which will likely continue trending year over year. Besides revenue generation here are a few more benefits your business can gain from offering digital gift cards to your customers.
A gift card allows your customers to try out your products 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 digital gift card will help boost brand awareness getting your business noticed. Unlike physical gift cards, digital gift cards can be sent from anywhere to any part of the world, which gives your business a global reach.
Increase in Overall Spending
The primary benefit of digital gift cards is that they increase sales. More than half of consumers are expected to spend as much as $30 more than the value of their gift cards. With 53% of consumers choosing to use their gift cards right away to take advantage of post-holiday sales, businesses can expect a significant increase in overall spending.
Consumers are more willing to spend money gifted to them than if it came from their own wallets. This alone prompts customers to buy more than they may usually have. Often this means that they’re spending more than the gift card itself. When the gift card recipient comes to your business to make purchases, it offers your business an opportunity to earn even more revenue and attract more customers.
Encourages Repeat Business
Offering gift card promotions, especially around the holidays can be a great way to increase loyalty with your current customers. This type of offer encourages a purchaser to spend more money, driving up the average amount of your gift card sale. Since gift card recipients are already using a card to make their purchase, you’re in a great position to add them to your loyalty program.
Recent studies have shown that 61 percent of consumers surveyed said they prefer to receive a gift card as a reward for loyalty over a coupon or bonus. This provides the perfect opportunity for your staff to sign them up for communications either through texts, emails, and/or mail. This offers you an opportunity to reach them with new promotions over time keeping your business top of mind for repeat purchases.
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How to Implement Gift Cards Into Your Small Business
Adding Digital Gift Cards to your business is easy. A number of online services allow you to create and issue digital gift cards to paying customers so that the final recipient can come back at another time to redeem his gift. Gift Up! is the simplest way to sell your business’ gift cards on your website with no monthly fee. Fully automated, any website, any currency.
Interested in finding out more about our products and services to help your business thrive? Reach out to us today. We will be happy to answer your questions and help you see how Stax can best support your business.