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Gift cards can be the perfect gift for any occasion. Whether it’s holidays, birthdays, anniversaries, or even just because, gift cards are an easy, convenient way for customers to gift your brand to those they care about or themselves. Even better? The gift card industry is poised for significant growth. According to Capital One, the global gift card industry is set to reach $3.09 trillion by 2030. This makes it an ideal time for businesses to invest in tools that make it simple for customers to gift their shops, regardless of whether it’s a physical or digital gift card.
Digital gift cards, in particular, have a leg up over physical gift cards. Research shows that 66% of gift cards sold are digital. With more and more customers choosing to go the digital route, it’s important that your business maximize the gifting option for customers.
Here are three key principles to keep in mind to help boost digital gift card sales:
Establish a variety of delivery methods.
Offering a variety of delivery methods for your gift cards can go a long way toward making them more marketable. Email has been the go-to option for digital gift cards for years, but today’s customers are more likely to open (and have easier access to) a message sent via text. Emails have an open rate of 20%. SMS messages, on the other hand, have an open rate of 98%. By offering more than one delivery option, businesses can help shoppers give gifts that are better tailored to their loved ones, boosting the opportunity to make a sale.
Square Gift Cards allows businesses to create physical gift cards and send digital cards via SMS or email. With the option to use premade designs or upload your own designs, you can make your gift card stand out in every form, for every occasion.
By offering digital gift card options, you can reduce plastic production and serve customers who prioritize sustainability. Not only that, but eGift cards can include a layer of payment security for both you and your customers. If you are a Square seller, you can enable 3D Secure by creating a rule to enable it at no cost for any API transactions, Square eGift Cards, or third-party integration through Square Risk Manager.
Create flexibility in redemption.
The challenge for many businesses is ensuring that gift cards are redeemed once gifted. With an estimated $23 billion in total unused funds due to unused gift cards, it’s crucial to make it simple and convenient for customers to redeem their gift cards. Data shows that 58% of active mobile phone users are interested in using their devices to redeem gift cards. Square Gift Cards allows customers to add gift cards to their mobile wallet to reduce the chances of them leaving home without it. This flexibility can entice customers to try new items at your store and potentially spend more.
Square research shows that customers’ average additional spend is 15% more when they use Square Gift Cards. Businesses can boost this spend by encouraging customers to sign up for their Square Loyalty Program. Exclusive offers and discounts can entice customers to spend even more, maximizing the opportunity. With this potential boost in revenue at your fingertips, consider investing in tools that make your gift card redemption process seamless.
Make them reloadable.
Seamless processes are also the name of the game when reusing gift cards. Some shoppers tend to set aside funds for certain purchases and reloadable gift cards make it easy for them to account for these regular purchases in their budget. Businesses that allow customers to check their balanceand reload a gift card on their own time and in their own way can set themselves apart from competitors and win favor with customers.
To take the reloadable gift card a step further, businesses can also encourage customers to reload their cards by offering promotions or discounts. Most shoppers may be familiar with the “reload your gift card and save 20% off your next purchase” deal businesses offer around the holiday season. Implementing this into your marketing strategy year-round can encourage customers to shop your business more frequently and spend more over time.
Maximizing sales through effective gift card strategies
To help your gift cards work for your business, the key is maximization. Maximize how customers can send and receive them, how they use them, and ultimately how they reuse them. Once you have these maximization efforts in place, be sure to spread the word to customers and encourage them to indulge. Square Marketing can help you reach customers through SMS or email so they never miss an update. You can also use your business website to market your gift cards and entice customers to buy.
Tracking and analyzing gift card sales and redemption data can help you better understand your customer behavior, which in turn informs your marketing strategies and customer preferences so you can adjust your offerings.
Whether it’s through a banner on the homepage or a tab solely dedicated to gift cards, be sure to take advantage of the power of this customer spending tool for every occasion.
