Digital gift cards and vouchers are a highly effective way of driving sales on your eCommerce store. For merchants it’s an effective way to expand product offerings and attract new customers, while for shoppers, it’s an easy way to solve gifting dilemmas.
In addition, the gift voucher market has received a significant boost by the COVID-19 pandemic as both consumers and eCommerce sites embraced the digital gift card for its versatility and convenience. The gift card market is expected to grow by USD 527.11 billion during 2020-2024.
At the same time, payment processor Incomm found that the pandemic has sparked a huge lift in online gift card sales with the number of cards purchased online soaring 57% in the first six months of this year compared to the first half of 2019. Similarly, research by Blackhawk Network found a 21% increase in eCommerce gift voucher sales this year. Payflex outlines some of the key reasons why it’s important for eCommerce merchants to consider incorporating gift cards and vouchers into their eCommerce sales strategies.
They encourage customers to spend more
Although gift vouchers are preloaded with a set amount, customers often spend more than the card’s value. Nearly two-thirds of gift card recipients spend an average of 38% more than the value of their cards. Equally, research by First Data revealed that the average consumer spends about US$59(R862) more than the original value of their card,
They are a strong customer attraction tool
Gift cards are a highly effective tool for attracting new customers. When your customers buy gift cards for others, they introduce your store to a new audience that may ultimately turn into loyal customers. It’s a win-win situation for all! First Data’s survey found 44% of respondents are likely to visit a store more often as a result of receiving a gift voucher.
They lower return rates
When customers give the gift of a gift card, recipients can buy exactly what they want. This significantly reduces the likelihood of returns or exchanges.
They solve last minute shopping conundrums
Digital gift cards are an ideal option for last minute shoppers . Through digital gift cards, the purchaser can immediately send the gift card to the intended recipient at the click of a button. Payflex offers a voucher programme where shoppers have the flexibility to buy a gift card from leading retailers and pay it off in 4 interest-free instalments.
They are a powerful marketing tool
Gift vouchers are a great marketing tool that can be used to attract new shoppers via various digital platforms. They also present an opportunity to create stronger relationships with existing customers via various incentive strategies.
They are a safe, socially distanced gift option
Digital gift vouchers are an ideal contactless gift option amid the COVID-19 pandemic. Customers can purchase them from the comfort and safety of their homes, and recipients can use them to shop online.
They are the perfect addition to omnichannel strategies
Retailers who don’t offer a seamless experience that traverses the digital and physical domains are at a disadvantage. Digital vouchers are a critical component of the omnichannel experience. Consider implementing a voucher programme that easily crosses channels for both purchase and redemption.
Give your consumers the gift of flexibility
Gift vouchers are a simple but powerful tool to promote your brand and increase revenue. What’s more, vouchers are a perfect solution for every type of retail offering. In addition, they also provide consumers with much-needed purchasing flexibility during uncertain times. Overall, gift cards are a win-win tool for businesses that want to attract new customers and boost customer loyalty and engagement.
