If you’re not yet offering ecommerce gift cards in your store, then you’re probably missing out on a HUGE untapped opportunity. These tools are one of the simplest yet most powerful ways to appeal to customers and introduce new shoppers to your brand. Their appeal lies in their flexibility–whether bought for a loved one or a treat for oneself, customers love having the freedom to choose exactly what they want from your store!
Offering gift cards in your store can also help you boost revenue, attract new customers, and improve your brand visibility–all with minimal risks and costs. This article will walk you through everything you need to get started. From understanding what gift cards are, their unique benefits, and how to use them, we’ll cover them all.
Ready to learn? Let’s dive right in!
What Are ECommerce Gift Cards?
Think of ecommerce gift cards as “virtual prepaid presents”–they come loaded with a specific dollar amount, which can then be used to purchase products or services from your store. Because these cards offer flexibility and convenience to both buyers and recipients, they’re a popular gifting option during special occasions and holidays.
With such massive appeal, it’s no wonder that the gift card industry is booming. In fact, according to industry insights, it’s projected to reach a staggering $3.09 trillion by 2030! This presents a great opportunity for ecommerce store owners. There’s no better time than now to leverage this tool to grow your business.
How Do ECommerce Gift Cards Work?
Gift cards are pretty straightforward: they’re preloaded with a certain amount, which can be used to make purchases in your online store.
Once customers purchase a gift card, they typically receive a digital version of the card, along with a unique code. This unique code can then be applied at checkout, automatically deducting the gift card’s value from the total order amount. Pretty convenient, right?
Now, let’s explore the two main kinds of gift cards below:
Two Types Of Gift Cards
Open loop gift cards
Open loop gift cards function exactly like credit or debit cards, allowing holders to purchase from any merchant or business that accepts this payment method. They’re incredibly versatile and are usually backed by major payment networks such as Visa and Mastercard. These cards are typically reloadable, which means customers can continue to add funds and use them repeatedly in purchases.
Closed loop gift cards
Closed loop gift cards, on the other hand, are “retailer-specific”: they can only be used in the store that issued the card. This type of gift card is what retailers typically opt for, as they encourage purchases within the business. They’re excellent tools to increase customer retention, drive repeat purchases, and bring in new customers to your store.
Benefits Of ECommerce Gift Cards
Now that we know more about gift cards, you’re probably wondering if they’re worth incorporating into your existing marketing strategy. Below, let’s explore the key benefits they can bring to your business:
1. Enhances brand visibility
Existing customers who purchase gift cards from your store and gift them to someone else are indirectly acting as brand ambassadors for you. Think of it this way… if they gift the card to someone who’s unfamiliar with your brand, they’re more likely to visit your shop to use the card.
This has a similar effect to word-of-mouth marketing, which makes it more impactful and beneficial for your business. After all, according to industry insights, 92% of customers trust recommendations from people they know!
Gift cards serve as invitation for customers to discover your brand, which leads us to the next benefit…
2. Great tool for customer acquisition
Once the recipient of the gift card checks out your store–you’re already setting the foundation for lasting customer relationships.
Apart from having a solid reason to visit, they’re highly encouraged to purchase since they’re spending “free money” through their gift card. This makes it a powerful tool to acquire new customers. It’s also an amazing opportunity to make a good first impression and turn a one-time visitor into a loyal customer.
Often, this scenario leads to higher spending than usual–61% of customers tend to spend over the value of their gift cards! As they’re redeeming the value of the card, shoppers are more likely to add additional items to their orders, increasing their average order values. It’s a win-win scenario that impacts your bottom line and brings fresh faces to your store.
3. No shipping and inventory costs
Ecommerce gift cards are typically delivered via email. This means no packing, shipping, or inventory costs related to offering them! This is one of the biggest advantages of offering gift cards–they’re a low-risk, high-reward offer for store owners. What’s more, you can offer them all year long and use them to drive sales both for peak and off-peak seasons.
4. Easy alternative for refunds or returns
Refunds and returns can be quite tricky to navigate–you’ll want to make sure you resolve your customer’s concerns, but avoid losing the sale (or the customer) entirely.
Opting to offer gift cards or store credits instead of a traditional refund can make things easier and smoother for you and your customers. Aside from keeping the revenue in your store, it also gives your customers the freedom to use the shop credit on any future purchase. This relieves them of any pressure to choose a replacement item and reduces the complexity related to inventory management or restocking on your end.
5. Provides several promotional opportunities
Gift cards offer you with lots of creative ways to engage your audience. We’ll dive into the specifics in the next section, but it’s important to understand how versatile they can be! For instance, you can use them in seasonal campaigns or incorporate them into your loyalty programs as a reward. You can also use them as re-engagement tools to bring customers back to your store.
How To Use Gift Cards To Boost Sales
After learning about the key benefits of gift cards for your business, you’re probably eager to start leveraging them in your store. So, in this section, we’ll explore some of the most powerful ways you can start incorporating gift cards into your business strategy!
1. Seasonal campaigns
It’s no wonder gift cards are a hit during the holiday season–they’re excellent gifting options! Whether you’re running a special sale during Christmas, Black Friday, or special occasions like Mother’s Day, offering gift cards helps capture the attention of last-minute shoppers looking for the perfect gift.
You can further enhance the appeal of your gift cards by allowing customers to customize their gifts. Plugins like WooCommerce Gift Cards, for instance, allow shoppers to “customize” their gift cards with a thoughtful message included in the email delivery.
2. Customer incentives for loyalty and referrals
As a store owner, you know that rewarding loyalty is one of the keys to building lasting customer relationships. Gift cards are one of the most effective tools for this. You can include them as rewards in your loyalty program, offering them to customers who reach certain spending milestones. This makes customers feel valued and appreciated by your business, fostering a deeper connection with your brand.
Likewise, you can offer gift cards as a reward for customers who successfully refer friends or family members to your store. It’s a great way to encourage word-of-mouth marketing to your existing customer base.
3. Use them for cart abandonment strategies
Cart abandonment is a challenge every store owner faces, and offering a gift card can be the nudge to bring customers back to your store.
Consider sending out abandoned cart emails with a compelling gift card offer. Infusing this offer with a sense of urgency can also help. For instance, you create an email with a 24-hour gift card offer, encouraging customers to complete the purchase before the credits expire.
If you’re looking for more ideas to promote gift cards, then check out our complete guide on gift card marketing:
Setting Up Gift Cards In WooCommerce
Fortunately, offering gift cards in WooCommerce doesn’t have to be complicated. Our plugin, WooCommerce Gift Cards, allows you to create and offer gift cards in your WooCommerce store.
Choose from the plugin’s default set of gift card templates or upload your own designs. You can also enable the “Giftable” option to allow your customers to send digital gift cards to their friends and family!
Want to learn more about selling gift cards in WooCommerce? Check out our detailed resources below:
- How To Sell Gift Cards In WooCommerce (Complete Guide)
- Store Credit Vs Gift Card: What’s The Difference?
Frequently Asked Questions
What is a gift card in ecommerce?
Gift cards are digital cards preloaded with a specific dollar value, allowing customers to buy products or services from your business. It’s a popular gifting option for buyers who want to give their recipients the freedom to choose the items they want to purchase.
How do I create digital gift cards for my business?
You can use plugins like WooCommerce Gift Cards. This plugin allows WooCommerce store owners to set up and sell giftable gift cards. It comes with a set of default gift card templates but also provides business owners the option to upload their own gift card designs.
Is it safe to buy e gift cards online?
Yes, as long as you’re purchasing from a trusted, secure, and legitimate retail store. Ecommerce platforms like WooCommerce have strong encryption and security protocols in place. To ensure safe purchases online, double-check if the website uses HTTPS, use secure payment options, and check out customer reviews.
Conclusion
Offering gift cards is one of the most effective ways to enhance your brand’s visibility and bring new buyers into your store. They’re incredibly popular and versatile, a great addition to your existing product lineup. By incorporating them into your marketing strategy, you can tap into a huge market potential and grow your business.
In this guide, we walked you through everything you need to know about gift cards, including:
- What gift cards are
- Benefits of offering gift cards
- How to use them to grow your business
- How to set them up in WooCommerce
Plugins like WooCommerce Gift Cards allow you to easily set up and sell gift cards in your ecommerce store. With this plugin, you can easily offer “giftable” digital cards on your store, allowing your customers to share your brand to their friends and family.
Want to know more? Have questions? Let us know in the comments!
