The Future of Incentives: E-Gift Cards
Cyber Monday was originally created as a means to encourage consumers to shop online on the Monday after Thanksgiving. Now, more and more shoppers are choosing to shop online on Black Friday, Thanksgiving Day, and throughout the holiday shopping season. And you know what pairs perfectly with the online holiday shopping season? Electronic gift card solutions.
That’s right—electronic gift cards are growing in popularity just as quickly as online shopping over the holidays! Throughout this article, we’ll discuss the ways in which e-gift cards are blowing up the internet and why your brand should jump on board.
The Rise in Electronic Gift Cards
Since gift cards are already so popular, you may be wondering why there is a sudden increase in the use of electronic gift cards. In short, people are getting used to receiving instant gratification thanks to the invention of smartphones. With a smartphone, nobody has to wait around for anything anymore.
Even Amazon’s shopping services such as Amazon Prime and Prime Now allow customers to make purchases online with very little shipping or waiting time. In order to keep up with the rising demands of today’s consumers, instant gratification is an absolute must, which makes electronic gift card solutions perfect for your customer reward program.
Why Offer Incentives?
When you make the decision to offer your valued shoppers customer incentives to show them how much you appreciate their business, electronic gift card solutions are an excellent option for building and maintaining relationships with your customers.
For starters, incentives strengthen ongoing customer relationships and help to build loyalty between the brand and new buyers. Research shows that 72 percent of customers end up spending more than the value of the actual gift card, and many gift card recipients will end up spending 20 percent more than the value of the gift card. Either way, you’re going to come out ahead in the long run.
Online Gift Card Sales are Growing
Since online sales are soaring and will only continue to increase as more and more shoppers rely on their smartphones and shopping apps, it only makes sense that customers would be redeeming their gift cards during online shopping purchases as well. Online gift card sales are growing at a rate of 29 percent per year!
But if gift card solutions are already so popular, then why is there a need for electronic gift cards? Well, the reasoning has a lot to do with the majority of today’s consumers—the millennials. Millennials prefer instant gratification—they like doing things when they want to do them, on their own terms. They’re great at telling brands exactly what it is that they want, so the best thing that brands can do is listen! This is where electronic gift cards come in.
Electronic Gift Cards and How They Attract Customers
Electronic gift cards are popular largely because they’re so convenient. They can’t be lost, they’re easy to redeem, and they save the shopper money. What’s not to love about them?
Think about your email inbox as a large file cabinet that has no space limits (unless you never delete or archive your emails, of course) and then think about that file cabinet you have pushed away in the corner of your home office. Chances are, that file cabinet is already jammed full and you can’t fit anything else in it.
The greatest thing about your email inbox is that you can virtually store anything in it with very little space restrictions. If you have a smartphone, the information will become available to you in a moment’s notice. All you need to do is perform a quick search through your email to find your e-gift card, and then you’re ready to use it.
A lot of millennials don’t want to spend time storing things away in a file cabinet or carrying around a heavy purse or wallet. They want everything to be done virtually for easy access at any time of the day or night.
What About Customers Who Don’t Use the Internet?
While not every shopper has a smartphone or even uses the internet, electronic gift cards will appeal to the majority of your customers. However, it’s important to personalize your customer incentives to ensure that each and every one of your shoppers can make use of the reward you’re offering them.
Perhaps you will consider conducting a survey to see who your shoppers are and how they usually buy products. With this information, you’ll be able to find a reward that satisfies everyone.
When you’re ready to create a promotion that’ll attract new customers and keep your current buyers coming back for years to come, Mpell Solutions can help. Our superior customer service and extensive knowledge will help your brand to compete and grow for years to come.