Gift Cards market size was valued at USD 428363.53 million in 2022 and is expected to expand at a CAGR of 7.24% during the forecast period, reaching USD 651707.07 million by 2028 – The Gift Card Market
eCommerce Gift cards are absolute deal-makers when it comes to online gifting.
They are definite sales magnets for your products & services. Contrary to the name, giftcards are also used for personal use, not just gifting. No wonder why they are so popular.
Selling gift cards has served retail businesses well. The eCommerce sector also heavily relies on gift cards as a leading marketing and sales strategy, mainly because they are easy to purchase and take away the stress of selecting a personalized gift.
Also, eCommerce cards sell throughout the year, even more during the holiday season.
In this article, we’ll talk about seven key roles of eCommerce gift cards, How to promote your giftcards to reach broad audiences and what are the benefits of eCommerce gift vouchers.
What Are eCommerce Gift Cards?
Gift cards are like digital presents that you can give to your friends and family, especially when you’re not sure what they want. In online stores, these are called eCommerce gift cards, and they are a smart way to let someone pick their own gift.
How do gift cards work?:
First, you buy a digital gift card on the website or another app. You can sometimes, add a personal touch, like messages and pictures. Then, it gets sent to the person you want to surprise, either through email or with a special code. When they are ready to buy something, they’ll just use the code during checkout.
In the big world of online shopping, gift cards make it easy for everyone to get what they want! Let’s see some of its types.
Types of eCommerce Gift Cards:
Store Specific: Store-specific gift cards are like your personal ticket to one awesome online store. When you get one, it means you can choose anything you want from that particular shop. These cards work at one online shop only.
Multi-Brand: These gift cards are like magic cards because they work in different online stores. You can explore and buy cool things from lots of places using just one card. It’s like having a pass to shop everywhere!
Digital Wallets: Digital gift cards fit into digital wallets like PayPal, making buying stuff online really simple. Just a few clicks, and you’re done! It’s a quick and easy way to shop on the Internet.
Most stores use gift cards to allow users to own fixed credit for a limited time, which they can mostly redeem within the same store. Some merchants also prefer selling 3rd party gift cards and re-sell gift cards of top brands.
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There are three main aspects to it: Creation, Selling, and Redemption. You need a WordPress gift card solution that provides these three functions and more.
7 Key Roles Of eCommerce Gift Cards In Promoting Retail Businesses
eCommerce gift card programs are easy to implement and affordable for businesses of all sizes. Consider these seven key roles of gift cards in promoting your business.
1. eCommerce Gift Cards Are True Revenue Boosters
A study estimates that 95% of all American households have either bought or received gift cards, with an average of 5 giftcard per shopper annually, spending an estimated $256 in total. – Blackhawk Network
The holiday season is the most profitable for the gift voucher business because customers actively look for a giftcard solution to cut the time required for selecting complex gifts for their closest ones.
Gift cards in eCommerce boost your sales and revenue in two ways:
- The first round of revenue is generated when customers purchase your gift vouchers.
- Second, when the recipient returns to redeem e-gift cards in your store, they usually spend more than the card value and increase the average order value.
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2. Gift Cards Attract More Traffic And New Leads
The retail gift card business model does get value from customer visits, meaning festivals, weekends, and holidays are ideal for selling. So, even something as basic as bad weather can affect physical gift card sales.
But digital giftcards are unaffected by weather conditions or pandemics.
Between Black Friday and Christmas Eve, the value of physical gift cards is down nearly a fifth (22%) vs 2019 and down 7.9% since 2021. Digital gift cards, on the other hand, have seen the value of sales increase by a whopping 77% since 2019 for the same time period, while the value of digital gift certificates sold also increased by 4.6% since 2021. – Paytronix
The ease of purchase and distribution of digital gift cards is the biggest factor contributing to its growth and elevated user experience. You don’t have to plow through heaps of snow to deliver gifts, we have Santa for that.
So, sip your hot chocolate and send digital WooCommerce gift cards to your loved ones.
3. Gift Cards Promotes Customer Loyalty
The gift voucher business is a reliable way to reward your customers and loyalize them.
Many eCommerce retailers offer gift voucher programs during the holiday spree. The aim is simple – to increase loyalty with current customers. You can master eCommerce gamification by giving away offers like:
A free $10 gift card to customers who purchase $100 in the x-product category, a $20 gift card to customers who purchase $150 gift cards, etc.
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These offers might convince your customer to spend more, increasing your average sale of WooCommerce gift cards. You can make these bonus giftcards a bait to attract your customers post-festive season to increase your off-season sales.
4. Easy Alternatives For Refunds, Returns, And Exchanges
Although holidays and festive seasons are known for generating exponential sales, it is a hard truth that gift voucher businesses also face a significant number of return and refund requests during these periods.
According to the National Retail Federation, 17.8% of holiday merchandise sold during the 2021 holiday season was returned.
Conventional refund/return request processing doesn’t allow you to convert customers during the post-purchase buyers’ stage.
And this is where the giftcards check-in.
You can convert return requests into sales opportunities by offering customers an eCommerce giftcard of similar value as their return, accompanied by a personalized apology message to foster empathy and loyalty towards your brand
5. Gift Cards Help You Compete With Major Retailers
Big brands largely focus on the commonalities between their customer base and selling according to buyer personas. Good on them because personalization requires products that can be personalized and accurate customer data.
Thankfully, you can easily customize or personalize eCommerce digital gift cards for customers. Better yet, you can sell customizable gift cards and let users personalize the WordPress gift card to their liking.
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6. eCommerce Gift Cards Are Catalysts To Increase Holiday-Season Sales
During the holiday sales rush, giftcard are one of the most sought-after items for purchase. It supports all business types to keep the customers’ holiday spirit.
Gift certificates make holiday sales brighter for everyone, from gym and spa subscriptions to restaurant and club memberships. eCommerce cards are the best choice for last-minute buyers and women on a shopping spree.
Note: Selling duration-based WooCommerce gift cards is perfect for promoting subscription products and services.
Since gift cards are preferred in gifting eCommerce, they are largely responsible for increasing holiday sales. Even Google Trends of the last five years show a rise in gift voucher demand during the Christmas season.
7. Gift Cards Increase Off-Season Sales
Birthdays, Anniversaries, Achievements, and moments of celebration never come watching the clock. They happen when they’re meant to be.
And such moments naturally demand gifts.
Thus, eCommerce card vouchers are always trending in special digital giftings. Gift cards have an emotional and monetary value too. They are practical gifts that recipients will always appreciate, even on non-festive occasions.
You can utilize our Gift Cards Plugin to create and sell Gift Cards on your WooCommerce store.
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Let’s see how you can promote gift cards to get more customers.
1. Strategic Website Placement
Make your gift cards stand out on your website. Consider featuring them on the homepage through eye-catching banners or dedicated sections. Make sure that potential customers can easily find information about your WordPress gift cards and understand their benefits.
2. Highlight Gift Cards Benefits
Clearly explain the advantages of purchasing gift certificates. Highlight the flexibility they offer to recipients in choosing their preferred products. Focus on occasions like birthdays, holidays, or special events as it’s the ideal time for giving giftcards.
3. Social Media Marketing
Leverage social media platforms to create engaging posts about your gift cards. Share customer testimonials, and run contests, or promotions specifically tied to your WordPress gift cards. Utilize visually appealing graphics to capture attention and encourage followers to share their experiences.
4. Harness The Power of Email Marketing
Integrate gift cards into your email marketing campaigns. Create newsletters or targeted emails that highlight the convenience and value of your giftcards. Consider offering exclusive discounts or promotions to incentivize purchases and make your emails shareable.
5. Collaborate with Influencers
Partner with influencers or bloggers in your industry to authentically promote your gift certificates. Influencers can create content that showcases the benefits and versatility of your gift cards, reaching a broader audience and adding credibility to your marketing efforts.
Benefits Of Gift Cards For eCommerce Business
The benefits of e gift cards go beyond reaching your sales target. A well-running gift voucher program will strengthen your brand, acting as a product and marketing tool at the same time. When offered on the relevant festive days as points & rewards, it will loyalize your users.
1. Brand Visibility
eCommerce gift card programs have captured the attention of major industry players and their audiences because they enhance brand visibility in the market sphere.
The customers purchase giftcards from their favorite stores and give them to their dear ones. The receiver may or may not be aware of your brand, but after availing of your giftcard program services, they know about you and will also visit you to redeem their gift certificates.
2. Customer Loyalty
For merchants, investing in the gift vouchers business is a highly risky plan because their customers have to trust them and be loyal to them for purchasing the WordPress gift cards. But it has also been seen that gift cards play an important role in enhancing customer behavior towards the brand and proving their loyalty too.
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3. Special Benefits To Customers
Gift cards are personalized and unique giftings for dear ones. And businesses promote gift voucher selling, considering the benefits it has. eCommerce cards are a source of additional benefits for the customers too, not limited to the business only.
Usually, people purchase WordPress gift cards to give to their special ones, but in rare cases, it is also seen that people do buy gift vouchers for themselves to purchase during a time of crisis or for leveraging additional discounts.
4. eCommerce Cards Increase Repeat Business
The repeated business term refers to the concept of selling gift cards to make the customer return to your store to redeem the gift card value. Purchasing or gifting gift vouchers to the customers bound them to return to your store to acquire the benefits of gift certificates. Hence, they help you build customers that are regular and visit you repeatedly.
Gift cards are a must-have for most businesses, especially those in the retail sector. Customers love buying, gifting, and re-selling their giftcards.
In this article, I’ve discussed the importance of selling gift cards, their seven key roles in retail business growth, and also shown you how to promote your giftcards to reach a broad customer base.
If you want to learn more about WordPress, WooCommerce, and eCommerce, then do check out our other blogs.