The conventional plastic version was at one time the sole option for a gift card. But another variant has grown in popularity over the years: the gift card. For several reasons, electronic gift cards are a perfect solution. For one thing, they offer a quick, straightforward and economical solution to any incentive program. Moreover, they are also personalized, and many consumers opt for egg cards for their regular holidays.
E-gift cards continue to gain consumer popularity.
The importance of this type of card was emphasized in the recent Bankrate.com gift card usage survey. The yearly data published at the end of 2014 shows that most gift cards are digitally offered.
Consumers appreciate the egg card idea. One of the main obstacles to the usage of egg cards was the consumer. Many individuals were not comfortable with the digital card notion because some raised worries about security and the technology underlying it. “digital” is the hot trend, however, and various consumer products are integrated into smartphones, tablets, and PCs. Therefore, the safety and safety of an egg card is no longer a matter. This is mirrored in the increasing number of egg cards available on the market. 59 percent of the 62 different gift cards have a digital variant, according to Bankrate.com. This ratio was only 54% in 2013. Overall, since 2011, the prominence of egg cards has increased every year. Millennials are also a significant factor for the digital gift card segment’s growth. Bankrate.com discovered that 14 percent of the thousands surveyed used or received a mobile gift card. For people aged 30 to 49 years, this figure falls to 7%. The idea of the gift card appears to be recognizable to younger audiences. Millennials are a crucial factor for the gift cards rise.
Sales of gift cards stay strong.
The increasing customer confidence in egg cards has also been demonstrated by the growth of overall sales of gift cards. Research carried out by CEB consulting firm revealed that overall sales of gift cards in 2014 were above $124 billion. This is 5% higher than the previous year. Sales in the gift card sector in 2013 amounted to $5 billion and in 2014 to $6 billion. CEB expects this particular sector to increase sales to around $17 billion by 2017, as gifting becomes a smaller niche market. However, CEB research has shown that sales of gift cards have slowed down, even with innovative products such as gift cards. “The gift card industry is now strongly aligned with novelty,” observed Brian Riley, Senior Research Director of CEB TowerGroup. “Maturity slows expansion, but advances in the e-donation sector are finally bringing new life to the market. As the fight for mobile wallets for the consumers heats up, we expect a new set of winners and losers to emerge.” For you, what does that mean? Shortly, expect an onslaught of gift cards. For various reasons, this form of digital award and incentive benefits, including price, flexibility, and security. It has made the online sharing of gift cards more accessible than ever to send E-gift cards.
4 Marketing strategies for your customer incentives
- Digital cards are convenient for customers to buy, but they are less straightforward to redeem. Merchants legitimately determine gift card parameters, but consumers are frequently unaware of the peculiarities of a single dealer. For example, some digital cards are intended for smartphone use only, but others cannot be used in physical places. And the processing of gift cards is not always instant, contrary to expectations for digital sales. In reality, some e-card buys (including Amazon) can take up to two hours to reach the client until recently. In addition, refunds for gift card transactions are typically returned to the gift card. This is not what customers anticipate, and it might be a trouble for all.
- Take the client who bought a fridge from a home enhancement business with $2,000 in gift cards she obtained at a discount. When the refrigerator collapsed within a month, she returned it and decided to buy a new one in another store. The transaction was nonetheless reimbursed in gift cards, not in cash. The consumer had to pay for another refrigerator while holding $2,000 in gift cards which could only be utilized in one shop.
- Though not ideal, buyers probably ignore delivery delays and gift card refunds when the advantages outweigh the trouble. This is not always the case due to potential safety concerns.