Gift cards as a marketing tool are underrated. Ecommerce stores that understand the benefits of digital gift cards would leverage them in multiple channels. Gift cards are one of the most sought-after choices among customers and the eventual gift card recipients. The ease of use and flexibility that it offers as a product is unmatched. You can buy it at the last minute and gift it, no one would bat an eye. Undoubtedly, you would have at least one friend or family who might be too hard to please. Handing a gift card might be your best bet.
Did you know that gift card sales are expected to touch a whopping $698.2 billion by 2024? These are incredible numbers.
In this article, we look at the unique advantages of gift card offerings.
What Makes Gift Cards So Popular?
Gift card is the go-to option for several occasions. Let us look at why it is fancied by customers.
- The gift card recipient gets to choose what they get for themselves
- The hassle of having to return gifts by a loved one isn’t a problem anymore
- It is one of the quickest ways to shop, completely hassle-free
- You don’t have to go through hoops to find the perfect gift for your loved ones
- You will have the “calmest” experience while getting a gift (Read gift card)
9 Hidden Benefits of Gift Card Programs for Your Shopify Store:
Not all gift card advantages for businesses are easily understandable for all eCommerce stores. If there are businesses that don’t understand Let’s look at some of the Shopify store gift card benefits that most stores would have missed out on.
Increasing Brand Visibility With Gift Cards:
People who have never heard about your brand might be the recipients of gift cards bought by your customers. You get exposed to a lot of potential customers. The gift card comes with your brand’s identity elements like name, logo, color schema, and so on. It is a subtle yet powerful advertisement tool. Boosting sales with gift cards is not the only advantage that you can make use of.
Attract New Customers:
One of the best things about having a loyal set of customers is that they would be the ones to advocate for you. Gift cards and customer acquisition go hand-in-hand. A happy customer brings in more customers. This is what happens when your customers buy gift cards and give them to their loved ones. While they get to share their joy and love, you get the opportunity to expand your customer base.
It Results in More Spending:
When the gift card recipient walks into the store or logs online to use it, there is a small psychological shift that happens. The gift card has already been paid for. Let’s assume the card is valued at $100. If the recipient finds a product they like priced at $130, they wouldn’t think too much about spending the extra $30 on it. This way, you get your customers to spend more at your store without spending more for it.
Well, some statistics back this claim of ours. 63% of your customers who buy from an eCommerce store using a gift card are likely to buy more than the value on it.
Increased Customer Loyalty With Gift Cards:
Gift cards and customer retention are a thing. You can offer gift cards instead of returns or refunds. Even customers who only want cash can be easily persuaded with a little extra on the value of the gift card. When you give gift cards in such situations, the customer ends up coming back to your store. This is an excellent opportunity for you to create a better relationship with the customer by offering a delightful experience. Add a loyalty program into the mix with clearly spelled-out benefits, and you have the customer for a lifetime.
Offers Excellent End-User Experience:
With gift card marketplaces joining the fray, it has resulted in an even better user experience and convenience. Digital gift cards can also be purchased from several platforms. It could be through digital wallets, mobile apps, or even directly from the store. The gift card buying experience is also smooth and can be completed within a minute or two, unless you have a customization request. If that were the case, you could include your brand’s design and add messaging to make customers feel special.
An advantage of offering gift cards is that you inadvertently increase the cash flow in your Shopify store without even selling a product. When the customer purchases a gift card, the store gets the money immediately. You don’t have to wait for the cash until the gift card is redeemed. According to a report by Global Gift Cards Industry, 47% of Americans have unused gift cards, its total value accrues to $23 billion. This implies that some of the value in the gift cards sold never gets redeemed.
The risk of a loss in profit doesn’t apply to gift cards. This is one of the hidden profits in gift card programs that most eCommerce stores don’t realize. The unused gift card funds remain with your store.
Increases Sales During the Holidays:
The best thing about the holiday season for ecommerce stores is that a lot of people shop. They are willing to be extra generous and it reflects in the value of gifts that are purchased. But here’s an interesting fact if you aren’t aware of it already– gift cards have consistently topped respondents’ wishlists when asked what they would like to receive. It can increase sales during the holiday season, that too without any change in your inventory. Leveraging gift cards for seasonal sales is one of the easiest ways to superpower your bottom line for the holidays. You can increase your marketing efforts without having to worry if your inventory is optimized.
Provides Useful Data:
They help you stumble upon interesting data that might have been under the radar until now. If you use a gift card program like that of 99minds, you will have a plethora of data points at your disposal. From knowing the most purchased gifts to understanding the most popular category of products bought by gift card recipients, you will be thankful for it. Shopify gift card analytics comes with a dashboard that lets you create downloadable reports for various use cases. Gift card ROI in eCommerce stores can be increased by tracking gift card success stories on Shopify.
Can Act As a Customer Acquisition Tool:
If you want to start a lead generation campaign and are wondering what the perks would be, fret not, this is where gift cards come into action. You can come up with a contest that has gift cards as a giveaway. Instead of spending tonnes of dollars advertising, you can quickly come up with enticing offers that make being a part of the contest alluring. By using social media effectively, you can find potential customers who would be excited to be a part of the promotions. It will result in word-of-mouth virality too since it is a low-effort but high-return proposition.
The more people who get to experience gift cards from your store, the more opportunities for your business. If there are businesses that don’t understand the impact of gift cards on customer spending, we are hoping that this article makes an immense difference. Even though gift cards are primarily used for gifting, they have other advantages that benefit businesses and customers alike.
If you are looking to incorporate a gift card program into your eCommerce store, 99minds will help you in unveiling the advantages of gift card promotions. Get in touch with us to understand how we can help you explore the benefits of gift cards.