It happens with probably everyone out there–what to gift to your loved ones on special occasions. You spend hours evaluating different options considering plenty of factors. And once you choose, you are never sure if your friend will like the gift. That’s the whole purpose of a gift–to spread happiness and see a smile, which, if not happen, can be pretty disappointing.
But who doesn’t like gifts? Everybody does! Gifts can make you feel happy, cheer you up, build closer connections, and enhance your overall mental health. Having said that, brands can also build deeper relationships with customers by helping them with gift cards.
What is a Gift Card?
A gift card is a voucher that customers can use to buy anything. For example, you can send your friend a gift card preloaded with a specific amount from a particular brand. Your friend can buy anything from that brand and use the gift card to redeem its value. Earlier, retailers offered physical cards, typically kept at the checkout kiosks. However, digitization has helped businesses prosper and made gifting simple by sending gift cards online through emails, apps, or even social media; around 46% of US users purchased a gift card on social media in 2020.
Digital gifting is becoming increasingly popular. It’s simple, easy, and effective! 42% of consumers spend more when using gift cards, and around 50% of leading retailers offer gift card solutions. Apart from customer engagement, gift cards are a lesser-known fact boosting sales and conversions.
More Sales and Better Cash Flow
Gift cards are convenient gifts. They also serve as a means for growing a business. When customers buy gift cards, businesses get an immediate increase in cash flow. There is no cost assumed at the point of sale because goods and services do not have to be provided until the card is redeemed.
For small business owners, gift cards are a valuable opportunity. Besides selling the cards themselves, increased spending tends to happen at the point of redemption. Gift card customers tend to exceed the spending they do when making face-value purchases. In terms of cash accounting, selling gift cards is a big boost to any small business. If you count it as income when you sell the card and not when the card is redeemed, gift cards are a much better deal for the person making the purchase.
Better Customer Acquisition and Retention
Gift cards are not just a way to boost revenue; they serve nicely for customer acquisition and retention. When someone receives a gift card, they explore a brand they might not have considered before. And because it serves as an invitation, customers don’t mind experiencing something new.
When customers stroll through your portals, they have the opportunity to experience your offerings directly. If they are wowed by the caliber of your merchandise, the geniality of your personnel, or the overall ambiance of your space, they are several times more likely to return than if they had not been wowed. We know this because they told us and because some of us also do the same thing in places where we are not the owners.
Businesses and customers both benefit from gift cards. They permit firms to obtain cash almost instantaneously. They carry with them a suggestion of spending in the future, that is, the recipient of a gift card will enjoy the experience of shopping at the store from which it came.
In some cases, the suggestion they carry of spending may be a little too delightful for the recipients of gift cards, and they may spend more in their stores than those recipients who do not have cards.
Increased Brand Awareness
When you give a gift card of an unknown brand to your friend, it helps in creating brand awareness. Not only does the friend get excited about visiting the store, but everyone at the party learns about it too.
Gift cards are like tiny brand ambassadors that spread the word about your business. They constantly remind people of fantastic experiences with your brand, ultimately boosting awareness and expanding your customer base.
Convenient and Secure
Physical gift cards were challenging to store–they could be easily lost or stolen. But digital gift cards are secure, and users can send them easily with a few clicks. Recipients can have gift cards in their email boxes waiting for redemption. All they have to do is apply the gift coupon during checkout and enjoy the newly bought gift.
Nowadays, retailers can also enable the personalization factor and help users send customized gift cards with personal notes. OptCulture omnichannel marketing platform can help retailers with gift cards from creation to tracking redemption and monitoring sales. Retailers can generate thousands of gift cards and meet customers’ specific needs under one platform. Brands can spread happiness and boost sales with the incredible power of gift cards!
