Trends indicate that more consumers are starting holiday shopping earlier each year. However, it’s not too late for merchants to adjust their strategies in ways that will produce large returns. One relatively simple change merchants should consider is adding an omnichannel gift card solution to their tech stack.
The Demand for Omnichannel Gift Card Solutions
More than 60 percent of consumers have adopted omnichannel shopping behaviors. Consumers want flexibility no matter which channel they choose, including how they purchase and redeem gift cards, including:
- Traditional plastic cards
- Virtual gift cards sent electronically
- Alternative “cards” sent to recipients via text and claimed online
- Multilocation cards that work across a chain
Here are a few more facts to consider about expanding your portfolio to include omnichannel gift card solutions:
- Consumers are Buying More Digital Gift Cards
During the last two years, 48 percent of people purchased more digital gift cards than traditional cards. In addition, the market for digital gift cards is poised to grow to $1 trillion by 2032.
- Recipients of Gift Cards Spend More Than a Card’s Value
According to CapitalOne Shopping, 61 percent of consumers will spend an average of $31 more than the card’s value. Gift cards help improve a merchant’s bottom line, and enabling your clients to offer gift cards on more channels can help them grow their businesses—and build a stronger relationship with yours.
- Gift Cards Help Boost Slower Seasons
In the restaurant industry, in particular, of all the gift cards purchased from October through December, more than 50 percent are redeemed from January through March, helping merchants beat the inevitable post-holiday lull. As a trusted advisor, you can show your clients how to use omnichannel gift card solutions to their advantage all year long.
How to Build a Gift Card Strategy Positioned for Growth
If your client isn’t seeing the ROI they need from their current gift card solution, show them how the right omnichannel gift card solution can lead to more revenue and customer satisfaction. Provide a solution with:
Flexibility for Purchaser
Consumers demand flexibility that goes far beyond faceplate options (though this is still a top request). They want the ability to choose between physical or digital gift cards and have them sent by mail, email, or SMS. Gift card buyers also want the ability to personalize their purchases with custom messages and images.
Flexibility for Recipient
Gift card recipients want the flexibility to redeem, reload, or regift their cards. This includes adding amounts to mobile wallets or quickly adding more funds to a physical gift card. Additionally, a split tender feature is essential for allowing the consumer to spend funds from the card in combination with other payment methods. Consumers should also be able to redeem gift cards on any shopping channel.
Leverage Loyalty
Share some tips for building creative promotions for their loyalty rewards program that use gift cards as incentives. Flexibility is vital. Merchants could experiment with providing a gift, additional loyalty points, or access to an experience. Brands that find the right balance capture 40 percent more revenue from their loyalty programs than those that don’t.
Capitalize on B2B and Self-Use
While many cards are purchased as a gift, catering to B2B buyers purchasing in bulk or consumers purchasing for self-use will give merchants a boost in ROI. Many corporations will buy cards in bulk to use as client gifts or employee incentives. Providing this option right on a merchant’s website streamlines the process. Additionally, some retailers allow shoppers to identify if a card is for self-use, routing purchasers to a checkout process that is easier than when the card is a gift.
It Starts with the Right Solution
Ensure that the gift card solution you offer streamlines processes and provides maximum benefits to merchants by integrating with the merchant’s payment solution. An integrated solution enables real-time reporting, easy balance management, and fraud mitigation. Also, look for a solution that allows your clients to offer alternative gift card delivery methods like QR code and text-to-pay. A solution that provides hassle-free migration from other gift solutions will make the upgrade easier in time for the holiday rush.
For more information on a gift card solution with the winning features your merchants need–and one that can be implemented in time for the holidays, contact us to start the conversation.
