Gift cards are a great way to boost sales and customer loyalty. They can be used for holiday gifts, special product categories, and different marketing channels. Millennials are the largest buyers of gift cards online. In fact, they purchase twice as many cards as they do cash! And what’s more, they increase brand loyalty.
Millennials buy the most gift cards
Gift cards are an increasingly popular choice for holiday gifts. A recent study found that 75 percent of millennials would rather receive a gift card than receive a physical present. And with more disposable income, gift cards are expected to become even more popular. Moreover, the Millennial generation is known for its budget-conscious attitudes. More people are choosing e-gift cards over physical presents. Moreover, e-gift cards are more convenient than their physical counterparts. The number of e-gift cards increased by 26% in 2015 alone.
Millennials are the most likely group to use gift cards, and a new survey has shown that e-gift cards are the most popular gift option for the younger generations. As a result, it’s likely that older generations will adopt e-gift cards in the near future.
They generate twice as much revenue as cash
According to the latest estimates from the National Retail Federation, gift cards generate more than twice the revenue of cash sales from online stores. However, the accounting treatment of gift card sales is still unclear. Most companies report gift card sales in other revenue categories, such as net sales and other income. Moreover, there are some variations in reporting practices.
The deferred revenue method is inaccurate. It fails to reflect the fact that a gift card can be used within a month after purchase. In fact, a survey by Marketing Workshop Inc. found that only 30 percent of gift card recipients use them within a month. Analysts also misjudged holiday sales in 2006, failing to account for unexpectedly strong January sales.
Gift cards online are especially attractive for miscellaneous services and small products. These cards can be packaged with services so that the customer can choose what they want. In addition, gift cards are attractive because customers can’t buy them. These benefits make gift cards an excellent investment for retailers.
They increase loyalty with customers
Giving away gift cards is an excellent way to increase customer loyalty and referrals. Unlike cash, which can easily be taken elsewhere, gift cards force consumers to return to your store. They also have the option to spend their cards to purchase other items. Here are some tips to help you boost sales with gift cards.
Gift cards are associated with the holidays, which makes them a great option for increasing customer loyalty. Additionally, customers who use gift cards will likely spend more than the value of the gift card. For example, a $10 gift card will probably result in purchases of at least $5 in merchandise. In fact, 63% of customers will purchase more than one gift card. The fact is that building customer loyalty is the fastest way to expand your customer base.
Gift cards are expected by consumers, so incorporating them into your online store is an easy way to increase sales. You can also integrate gift cards into your mobile application to provide a more convenient and personalised experience. Using closed-loop gift cards is also an excellent way to attract a wider audience and elevate your customer loyalty. In addition to increasing sales, gift cards help retailers improve operational processes and boost brand market share.
Make sure your e-gift card product page is integrated into the global navigation for easy purchasing. Display the gift card prominently on the site, with multiple designs to choose from. You should also include a dedicated message about gift cards in the emails you send to your customers.