Each year, millions of digital gift cards are issued in Australia to meet the growing demand of flexible, mobile-friendly and personalised gifts.
For eCommerce brands, digital gift cards hold significant strategic value in acquiring new customers, increasing average order value and boosting repeat purchases. Beyond tangible metrics, eCommerce companies can leverage digital gift cards as an extension of their brand – by selling them on their website and gift card marketplaces, to having them available in your customers’ digital wallets.
Let’s explore in detail 8 ways brands can incorporate digital gift cards into their business strategy to enhance brand recall and customer loyalty.
1. Uplifts direct sales and upsell:
Selling digital gift cards directly to customers on your website will boost cash flow upfront.
Whether customers purchase gift cards for themselves or as gifts for others, redeeming gift cards often prompts shoppers to add more items to their cart to maximise the gift card value. This not only increases average order value but also allows customers to explore a wider range of products, enabling upselling and cross-selling opportunities.
2. Provides an option for indecisive shoppers:
For indecisive shoppers, digital gift cards provide a solution by offering flexibility and choice. This can increase the likelihood of conversion and reduce returns associated with making purchasing decisions.
3. Grows your customer base:
Offering digital gift cards can attract new customers to your eCommerce website, especially if they are introduced to the brand through gift card purchases. These new customers may continue to shop with the website even after redeeming their gift cards, contributing to long-term revenue growth.
4. Supports promotional campaigns:
Digital gift cards are a perfect tool for promotional campaigns to drive sales during peak seasons or special events. Offering discounts or incentives on gift card purchases can stimulate demand and generate additional revenue for your eCommerce website.
5. Boosts loyalty and referral programs:
These days, most companies invest in some form of loyalty and/or referral programs. Digital gift cards can be incorporated into your loyalty program to cash out loyalty points or distributed when a successful referral is made. With customisable values and branding opportunities, digital gift cards help nurture your relationship with customers and build a habit of choosing your brand over your competitors.
6. Incentivises new and return customers:
Similarly, the ease and speed of sending digital gift cards makes it a useful tool to incentivise first time or inactive customers. For eCommerce, this may be an incentive to encourage customers to complete their abandoned purchases. Sending a gift card with a limited-time validity to customers who abandon their carts can prompt them to return and make a purchase.
7. Offers an omnichannel experience:
Consumers today expect omnichannel experiences. While eCommerce brands may not have a physical store, digital gift cards can connect your online store with any in-person promotions you may choose to run in the future.
8. Grows your distribution network:
Digital gift cards are a gateway to a wider distribution network. Many gift card distributors like True Rewards sell gift cards from different brands. Each platform is yet another brand opportunity to increase recognition and revenue.
Scale your eCommerce business to new heights
By embedding digital gift cards into your eCommerce website, you can create new revenue streams and unlock new customer bases. At True Rewards, we understand how you can reap the benefits of digital gift cards across every stage of your customer lifecycle. From digital gifting to rewards and loyalty platforms, we have a range of solutions to help you attract and retain customers with data-driven insights along the way.
Contact us today to explore how our expertise and customisable incentives can take your customer relationships to new heights.
