Gift cards have been around for years to promote sales in retail businesses. They provide businesses with an opportunity for growth in transactions as customers love exchanging gift cards in place of cash. With the rapid growth in the e-commerce sector, electronic gift cards or egift cards are leading in sales and marketing strategies in almost every industry. Australia currently is the 11th biggest eCommerce market, generating a revenue of USD 25.7 billion a year. As over 9.1 million households shop on these sites for groceries, travel, fashion, food and more that accept online transactions, electronic gift cards are growing as the non-cash payment methods in Australia.
How Are E-Gift Cards More Convenient?
Unlike traditional gift cards, electronic gift cars or digital gift cards are just gift codes and an accompanying pin without a physical card. Physical gift cards are acceptable in offline stores. However, one can buy and send these virtual gift cards on any device with digital applications like an email, text message, social media communication portal or a compatible smartphone app. The receivers can immediately redeem the gift card and save the money in their e-wallet for future use. Every holiday season, events, office incentives, and promotional drives rack up the sales of gift cards that bring in more transactions for the business. It is popular among businesses because it’s easy to purchase, and the customers need not stress about buying a personalised gift and can buy them in a few seconds.
How Egift Cards Play a Significant Role in eCommerce Business
Stores generally sell gift cards to boost sales and track and analyse customer transactions with the business. Having a gift card program with an integrated tracking system makes it easy for the business to check the rate of redemption of the success of the promotional program.
They Increase Brand Visibility
One of the biggest reasons why gift card programs have sustained effective sales and marketing strategies is because they enhance brand visibility in the market. Customers prefer purchasing items from the stores they trust and want the same quality for their loved ones. Therefore, they like sending them a gift card from a store they know the receivers would love. It is beneficial for businesses as they acquire new customers through the process. Gift cards also double the revenue and the sales as the customers transact twice with egift cards, once during purchase and again during redemption.
They Are Easier Alternatives For Refunds, Exchanges or Returns
Even in an eCommerce site where sales go through the roof, it experiences refunds, exchanges or returns requests that can decrease the profit. However, they can turn these loss-prone requests into profits again by offering gift cards with an apology note to customers in place of cash. Hence, they can convert the return or refund requests into opportunities for increasing sales.
They Promote Loyalty
Gift card programs during holiday seasons aim to increase loyalty among customers through the rest of the year. Offers like providing a $10 gift card upon purchasing $100 worth of a product increase the probability of customers returning to the store or the website to purchase more products. They can increase seasonal holiday and off-season sales with additional promotional offers.
They Attract New Customers
Electronic gift cards benefit store owners in attracting traffic due to their ease of deliverability and cash flow. It increases new leads and the number of loyal customers every year. As they stimulate repeated business with the customer, increasing customer loyalty, brand awareness and visibility, they help businesses stay ahead of their competition.
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