In the past, physical gift cards were the go-to tool for drawing buyers into businesses and making purchases. Often exquisitely crafted and arranged, these physical cards not only made great presents but also attracted people to physical stores, therefore increasing instant sales and customer loyalty. For the modern e-commerce scene today, the digital revolution has changed this idea. With more convenience and reach, digital gift cards today have the same appealing advantages—attracting new consumers, boosting sales, and strengthening brand loyalty—but they also offer.
Unlike their physical counterparts, digital gift cards can be instantaneously distributed via email or mobile apps, customised on the fly, and effortlessly included into an online buying experience. Using the timeless appeal of gift cards and new technology to increase the influence of your company, this guide will walk you through the fundamental processes to design and market digital gift cards for your online store.
Why Offer Gift Cards?
The market for gift cards is projected to grow to $584 billion in 2025. This fact alone sparks the popularity of gift cards. The question now is, why are businesses using gift cards? Well, they offer several advantages for both businesses and customers:
Increased Revenue
It's not unusual for customers redeeming a gift card to spend more than the amount of the card. Often referred to as "uplift spending," this phenomenon results from the gift card serving as a reward for consumers to buy more goods or upgrade to more expensive things.
For instance, a consumer might start with a $50 gift card and choose to add more money to get a luxury good or free complementing accessories. This extra expenditure generally raises the transaction value and helps generate more income for every sale.
New Customer Acquisition
Gift cards often act as a portal for potential customers to try out the goods or services of a business. Receiving a gift card, particularly if it comes from a friend or relative, indicates a low-risk introduction to your business. The value of the gift card has already somewhat pre-qualified these first-time buyers, and should their shopping experience go well, they are likely to be returning devoted consumers.
Seasonal & Special Occasion Sales
Gift cards have long been a common choice for birthdays, anniversaries, and other special events as well as for the holidays. In fact, shoppers spend 40% of their budget on gift cards. When the provider is not sure of the particular tastes of the recipient, they provide a flexible present. This adaptability not only makes gift cards a seasonal delight but also gives companies a consistent increase in revenue during busy periods.
Choose the Type of Gift Card
Before launching a gift card program, decide which format suits your business best:
- Digital (E-Gift) Cards: Sent via email or SMS, ideal for instant delivery and easy tracking.
- Physical Gift Cards: Tangible cards that add a personal touch, suitable for businesses with a retail presence.
Most e-commerce platforms support digital gift cards, making them a cost-effective and convenient option.
Setting Up Gift Cards on Your E-commerce Store
Setting up gift cards on your e-commerce store involves both strategic planning and technical configuration to ensure a seamless customer experience. Here’s an in-depth guide to help you get started:
1. Create Gift Cards as a Product
A. Access the Gift Card Feature
Most of the popular e-commerce platforms, like Shopify and WooCommerce, have a gift card tool that can be accessed from the admin dashboard. To find the gift card option on your platform, go to the section on marketing or product management tools. Review the material or support tools on any platform to become familiar with any settings unique to it.
B. Set Product Details
Once you’re in the gift card creation area, start by crafting an appealing product listing:
- Title & Description: Choose a headline that clearly and attractively captures the intent of the gift card. Emphasise the gift card's advantages—flexibility and simplicity of usage—then write a thorough explanation of how one might utilise it.
- Visual Appeal: Upload a top-notch picture that fits the look of your brand. A gift card may be more appealing and convey quality and care if its graphic is pleasing.
- Additional Information: Think about adding any terms and conditions, instructions for redemption, or special selling propositions meant to boost consumer confidence and interest.
C. Determine Denominations
Make sure there's something for everyone by giving customers a choice of several fixed values, like $10, $25, $50, etc.
Depending on the capabilities of your platform, think about letting users specify a specific amount. This adaptability can draw consumers with certain gift budgets or needs in mind.
D. Enable Automatic Delivery
Streamline the customer experience by setting up automated gift card fulfilment:
- Unique Code Generation: Ensure your system automatically generates a unique gift card code upon purchase. This code is crucial for the recipient to redeem their gift.
- Email Delivery: Set the system to forward the gift card code straight to the email of the receiver. Automated delivery improves the whole buying experience by lowering customer service questions and delays.
2. Customize Gift Card Redemption
Once the gift card product is live, optimising the redemption process is essential to ensure smooth transactions and high customer satisfaction.
A. Ensure Gift Cards Are Redeemable at Checkout
Allow users of your checkout page to enter their gift card code on a designated input field. This field ought to be easily located and well-labelled.
To be sure inputting a valid code accurately subtracts the relevant amount from the final purchase price, test the redemption process.
B. Allow Combination of Payment Methods
Usually, the value of the gift card might not be enough to pay for an order. Make sure your payment system supports mixed payment options so consumers may quickly finish their transactions using their gift card in conjunction with another form of payment (such as credit card or PayPal).
Make sure that the change in payment methods is seamless and that consumers are properly advised of any outstanding debt following gift card application.
C. Set Expiration Dates in Compliance with Local Regulations
Find out what the rules are in your area about when gift cards expire. Certain areas have tight rules on the length of validity of gift cards.
Clearly show at the point of sale and in the gift card details the expiration date and any related terms. This openness fosters confidence and helps to prevent possible legal problems or consumer discontent.
Change your system settings to automatically enforce these expiration dates during the redemption process, guaranteeing uniformity and compliance.
Customising the Gift Card Design
A well-designed gift card can enhance the customer experience. Consider the following:
- Branding: Include your logo and use brand colours.
- Seasonal Themes: Offer themed designs for holidays, birthdays, and special occasions.
- Personalisation: Allow customers to add a message to their gift cards.
You will find pre-made templates for your gift cards on DiziShore and use tools like Canva to create your own gift cards without having to spend a lot on a dedicated designer.
Marketing Your Gift Cards
To maximise sales, integrate gift cards into your marketing strategy:
- Feature Gift Cards on Your Website: Place them in a prominent location, such as the homepage or navigation bar.
- Email Campaigns: Promote gift cards to existing customers, especially during the holiday season.
- Social Media Advertising: Use visually appealing posts and limited-time offers to encourage purchases.
- Loyalty Programs & Promotions: Offer discounts or bonus value on gift card purchases (e.g., “Buy a $50 gift card, get an extra $10”).
Conclusion
Gift cards are a great approach for your e-commerce company to boost cash flow, draw fresh clients, and raise sales. Following this manual will help you to effectively run a gift card program catered to the demands of your business. Start now and use gift cards' potential for your online store!