Physical gift cards aren’t very beneficial for businesses that rely on online sales because they don’t have shops where people can redeem them. Therefore, e-commerce businesses rely on e-gift cards as a solution. E-cards are codes typically sent through email that the recipient can claim for monetary value at the company. Rather than an e-gift card, a more accurate name for them might be “e-gift code.”
To get someone an e-gift card, you go to the company’s online store, check out the card, and submit the recipient’s email. Then, the online store sends the email directly to the receiver with a note letting them know it was from you. This convenience is one of the many reasons why e-gift cards are important to your e-commerce business.
The Popularity of Gift Cards
Millennial customers have shown a knack for giving one another gift cards for special events and holidays. As people continue to use the internet more, their tastes are becoming increasingly niche, making gift buying harder. The more specific someone’s interests are, the more challenging it is to find something within those parameters. Therefore, young people often prefer to give each other gift cards. This allows the recipients to go pick out the exact things they want.
Also, gift cards are preferable over just giving money because they’re more personal. A gift card says, “I know where you like to shop, but maybe, not what you need right now.” They show a thoughtful consideration for interests while still giving recipients the option to find what they want. Unlike straight cash or a check, gift cards can still feel personal.
Boost Brand Awareness
A gift card is like a free trial to your company. Sometimes, a person may give a gift card because they’re excited to share a brand they love with a friend. The recipient might be completely unfamiliar with your company in times like these, so this will be their first experience with your brand. The gift card lets them take a risk-free dive into your products and services to see if they like them. It’s an opportunity for your brand to make a great first impression with a new customer who isn’t worried about the cost of your products or services but rather their quality.
When they give the gift card, it’s as if the gift-giver makes a recommendation. And if the first sale goes well, you might have a new loyal customer. They might even like the gift so much that they give a gift card for your company to someone else.
Have Potential To Increase Sales
You might not necessarily see an increase in sales because you’re selling so many gift cards. Instead, you may notice the boost on the back end. When someone receives a gift card, they want to make the most of it, so they’ll most likely spend every penny. But when have you ever had a bill that’s 15 or 20 dollars flat? Probably never.
The majority of people who use your e-gift cards will probably end up spending more than what the cards are worth. When there’s a small amount leftover on their card, they choose to buy more to use it up. They may also view the gift card as a discount on more expensive items rather than a chance to get something free. So, if the original customer had only bought a gift, you wouldn’t get the benefit of the receiver redeeming their code while purchasing other items.
Increase Convenience for Customers
E-gift cards are ideal because of their convenience. To gift someone a physical card, a person needs to go to the store, purchase it, and then see the recipient in person to give it to them. This can be harder than ever in a modern digital era, as a best friend or spouse could live halfway around the world. So the convenience of sending a gift over email anywhere in the world is something that customers will appreciate and take advantage of. Also, those who waited till the last second to buy a present can still easily give a gift from your store without waiting for something to ship.
Offer More Security
The worth of a physical gift card is in its physical plastic form. If you lose it, you also lose the money registered to it. This is why digital gift cards are far more secure than tangible ones. The value is in the code. So as long as you have the code written down somewhere or saved in an email, you’re copacetic.
Reduce Post-Holiday Returns
No business likes returns. They can cost you money, decrease the value of a product, and lead to lost customers. And the worst time of the year for returns is right after the holidays when customers return perfectly good items because they were gifts they received from others but didn’t like. Companies then have to replace the total value of the products even if they can’t re-list them at their full value. So you should try to cut down on the number of gift receipts you see around the New Year.
Gift cards can cut down on returns by ensuring that no one ends up stuck with a present they didn’t want. Instead, customers can visit your website excited to explore what your business has to offer.
Compete With Larger Brands
For smaller companies to compete with larger businesses with more significant resources, they need to find every opportunity to match their services and conveniences with similar programs. The giants in your industry most likely already have some form of e-gift card program established, regardless of the field. You are forfeiting potential customers and letting them go to the competition by failing to match their services. To be competitive in the modern business landscape, you need to constantly find ways to make your product more convenient and accessible to prospective customers.
After checking out why e-gift cards are important to your e-commerce business, you probably can’t wait to get the software necessary to offer them to customers. If you’re interested in a digital gift card platform for your business, TruCentive is here to help!