Why Every Shop Owner Should Have Digital Gift Cards For Their Customers
Chances are good that when you think of gift cards, you imagine plastic cards with magnetic strips on the back. Those are certainly widely available and very versatile, but digital gift cards may actually offer even more benefits than traditional physical cards.
Why should every shop owner have digital gift cards for their customers? We’ll answer that question and others below.
What Is a Digital Gift Card?
The first thing we need to do is define what we mean by a digital gift card. Essentially, these are no different from physical cards. They’re just digital in nature.
However, they can work in different ways depending on your needs and gift card system. In some instances, customers can store digital gift cards in electronic wallets (or store wallets/accounts). In others, they will receive a code via email that they can enter at checkout that works as their gift card.
The best digital gift cards actually mimic physical cards with a card-like design delivered via email. Not only does that offer familiarity in terms of shape and design, but they can be printed out and given to others as gifts.
With a better understanding of what digital gift cards are, it’s now time to turn our attention to why you should offer them in your shop.
1. Boost Sales
What do you think is the most commonly asked for gift during the holidays? While there are many contenders, gift cards are the most popular option, and digital gift cards are quickly becoming the more popular of the formats. By tapping into this trend, you’re able to boost profitability and ensure that you can offer something for virtually everyone.
2. Branding Opportunities
With a digital gift card, you’re able to expand your branding opportunities. You can serve the first customer (the one who buys the card) and then serve the needs of the recipient. Often, these are people who were unaware of your business in the first place, which allows you to build a stronger customer base. There’s also the chance that the new customer will spend more than what is available on the gift card, giving you access to increased revenue.
3. Cut Costs
Physical gift cards represent a significant investment. There is also risk involved, as they can be lost, damaged, or stolen. Digital gift cards, on the other hand, offer a much more cost-effective solution. They cannot be lost or stolen, and they are more affordable to purchase than physical cards.
4. Track Sales Trends
It’s important that you’re able to forecast demand for products in your shop, but that can be challenging to do. Digital gift cards give you the ability to peer into these trends and make informed decisions. Purchases made with these cards are easily trackable, so you can determine demand and forecast trends more easily. In turn, that helps you better manage your inventory, stock items that sell well, and explore related or add-on items that might work, too.
5. Anytime, Anywhere Sales
Digital gift cards can be bought and sold anytime, from anywhere. Plus, there’s no need to worry about shipping and logistics, no inventory to replenish, and no hoops to jump through. Delivery to the customer involves nothing more than sending an email – something you can do in just a couple of minutes, allowing you to focus on building your success in other ways.
It’s Time to Get on the Digital Gift Card Trend
Digital gift cards are effective, flexible, affordable, and in-demand. They can also offer some pretty substantial benefits. If you’re not already using them in your shop, now’s the time!