With the rise of digital marketing and technology, digital gift cards are experiencing significant growth as a promotional tool for businesses. Many sales teams, marketers, and agencies are using digital gift cards to drive acquisition, build brand awareness, or for use within their loyalty programs.
Digital gift cards help to increase sales successfully while managing marketing campaign costs. Below are some ways to use digital gift cards to boost your business.
1. INCREASE SALES REVENUES
One of the most significant benefits of gift cards is that they act as sales magnets. They are mostly requested during the holiday season and EOFY when the pressure to reward staff and loved ones are highest. Depending on how last-minute the gifting is, the purchaser may prefer the tangibility of physical gift cards or the immediacy of digital gift cards.
They can have a multiplying effect too, with eCommerce customers spending above the face value at checkout.
2. ATTRACT NEW CUSTOMERS
Another notable benefit of gift cards is that they act as lead magnets. In some cases, the person receiving your gift card may be hearing about your business for the first time.
Gift cards, therefore, allow new customers to get better insight into your brand. They are likely to return for more products or services if they enjoy the purchase. The new customers may also refer their loved ones or send similar gift cards.
3. IMPROVE RETENTION
Gift cards help your business earn customer loyalty, and at the same time boost staff retention. They help to keep staff/customers satisfied and happy, which can make them remain loyal for the long term.
A gift card can also help ease things up with a customer who had an unpleasant experience with your business and would like to process a refund or return. Offering the customer a gift card in such a situation can ease the tension and enable you to retain them.
4. SECURE AND CONVENIENT
Conventional physical gift cards are susceptible to loss or theft. Some people also use them for fraudulent activities. Digital gift cards help reduce these occurrences by offering more convenience and security.
Your customers can send and receive digital gift cards up to $4,999 without hassle. Moreover, they are easy to purchase and send out to loved ones as a last-minute token on special occasions. It is also easy and convenient to create digital gift cards as a business owner. All you need to do is determine their worth and allocate products or services accordingly.
5. INSTANT DIGITAL DELIVERY
Unlike plastic cards, digital can be delivered instantly online. This encourages multiple shoppers to purchase them. They also offer highly attractive prospects and leads because they can be delivered to mobile devices instantly. The users can also store them on their phones to use at any place and time.
Digital gift cards also allow customers to make smartphone-based payments. They are a great way to engage customers with your brand since they offer instant benefits.
6. TRACK CAMPAIGN PERFORMANCE
Digital gift cards offer businesses enormous potential to build a comprehensive database. They can use these cards to track conversion rates, collect data on purchase behaviour, and gather accurate metrics.
Marketers can also collect data on the senders and recipients of gift cards and use this information for future marketing campaigns and promotional campaigns. Since digital gift cards are easy to track, they can inform you of your future inventory. For instance, you can gather statistics on the purchases that customers are making most using the gift cards and stock up for the future.
Many customers believe that it is essential to customise gift cards. Digital gift cards offer a cost-effective and straightforward way to use photos, designs, messages and rewards for personalisation. They allow a business to offer a vast catalogue of rewards to their customers or employees to redeem a catalogue of rewards.
Businesses can also use these personalisation options to connect with clients and build loyalty. For instance, they can use suitable designs and messages to target specific demographics.
8. COST CONTROL
Digital gift card programs offer cheap deployment methods along with high scalability. They enable businesses to cut back on printing and delivery costs when rewarding their customers or employees. They can also allow you to undertake a highly targeted campaign within a shorter period.
9. BRAND RECOGNITION
Many start-up businesses offer digital gift cards as part of their pre-launch strategy to introduce more people to their product, service or brand. Purchasing your gift cards for their loved ones is also a sign of your customer’s satisfaction with your brand. They are confident that your products or services will satisfy their friends and family.
10. DRIVE PEOPLE INSTORE
If you have a brick-and-mortar store and a digital storefront for your business, you can use digital gift cards to drive traffic to the physical location. For instance, you can use gift cards to inform your customers about sales in your brick-and-mortar store as well.
HOW DO DIGITAL GIFT CARDS WORK?
When your customer sends your gift card to their recipient, they can use it to shop on your website and redeem it by applying the gift code on the checkout page. They may also opt to add the amount to their store wallet.
Once applied, the gift card applies a discount at checkout.
Digital gift cards allow customers to make sender/receiver connections. They act as a token of love. Therefore, they apply to any event or occasion. Business owners are advised to take advantage of digital gift cards to boost their business all year long.
Digital gifts are rapidly growing to be an integral part of the eCommerce market. If you aren’t already utilising the gift card option, consider incorporating it into your marketing strategy to boost sales. Book a demo with our rewards specialists to find a solution for your business.