According to GlobalData’s weekly consumer monitoring, “the epidemic has permanently entrenched the increased impact of both digital gift card purchase and redemption.” According to the same body of data, by 2021, 27.5% of those who purchased gift cards had switched to using digital gift cards like the Visa gift card online. These are essential takeaways for retailers of any shape or size that want to guarantee that they are transforming to stay up with changes in customer behaviour and maintain as much competitiveness as possible in an economic climate that is becoming more difficult. And aside from the apparent need to provide customers with the products or services they want, there are numerous other advantages associated with introducing digital gift card solutions for merchants.
Enhanced Satisfaction for One’s Patronage
Businesses should provide customers with the digital gift card solutions they are seeking, which should allow them to conveniently place orders online and provide them with the ability to redeem their rewards digitally. Next, wow them with a streamlined customer experience that includes the opportunity to add a personalised touch in either a picture or a video message. After that, sprinkle on some ‘timed delivery,’ which allows clients to choose the day, time, and mode of delivery for their orders. After this ordeal, you will have satisfied patrons who have purchased your goods or services.
Developing More Avenues for Sales
Introducing new distribution methods is yet another significant advantage offered by digital solutions for gift cards. Customers will come to the store to buy essential things, but they will also make extra purchases on digital gift cards for their families, friends, and coworkers. It will create a new income stream—more profit for merchants and a more comprehensive selection of goods for customers.
Acquiring New Types of Customers
Dedicated consumers of a retail, leisure or hospitality business are likely to want to tell their friends and family about their positive experience with the brand. And one could accomplish it with the use of a digital gift card. The wonderful thing is that when new clients get a gift card, 18% of them will become devoted customers themselves, which is a terrific thing for the business. This results in a fantastic virtuous cycle of acquiring new customers using gift cards for the business. Therefore, by investing a little in a solution for digital gift cards, businesses can provide themselves with a significant source of customer loyalty and lead creation.
Additional Income From Increased Expenditures
“Up-spend” is an additional benefit that may accrue to shops that use a digital gift card system. They have the propensity to add more of their own money on top of the value of a gift card; on average, customers contribute an additional 67% of the gift card’s worth. Retailers will see an increase in income due to all of this. In addition, there will always be instances in which gift cards are not redeemed for a product or service. Therefore, even though the majority of retailers and operators of leisure activities would like the results mentioned above (new loyal customers), there is still value to be had in gift cards that are never actually redeemed for a product or service.
Sustainability is the fifth primary advantage a business will get from implementing digital gift card solutions. Every company is responsible for demonstrating how it addresses sustainability, which is a complex task, especially for more private companies. So by going with a solution that involves digital gift cards rather than paper or plastic gift cards, businesses can operate this aspect of their company without using either of those materials.
So, customers may place their orders for gift cards in a digital format, and the recipients also receive and redeem the Visa gift card online in the required format. In addition, the digital experience provides a wealth of additional opportunities to include the brand’s identity and message.