As a store owner, you’re always looking for innovative ways to increase sales and attract more shoppers to your store. Have you ever considered offering gift cards? These tools can be a powerful asset for e-commerce businesses! Gift card benefits go beyond boosting sales: they can help improve your brand visibility and bring new customers to your store.
These are just some of the gift card benefits we’ll dive into today. In this article, we’ll walk you through the advantages of offering gift cards. By the end, you’ll also learn how to easily set them up in WooCommerce.
Sounds exciting? Let’s dive right in!
What Are Gift Cards?
In simple terms, gift cards are “digital prepaid cards” – they’re loaded with a specific dollar amount, allowing shoppers to buy anything from your store. This flexibility makes them one of the most popular gifting options for customers. In fact, according to industry insights, 52% of shoppers prefer purchasing gift cards because they’re convenient.
Store owners also benefit from offering e-gift cards to their product lineup. They’re easy to set up and manage and don’t require physical inventory. What’s more, they can be delivered instantly via email and are easy to track. This can give you valuable information about shopper preferences and redemption patterns, which can help refine your marketing efforts.
Now that we understand what gift cards are, let’s dive into the specific advantages of offering them in your store.
5 Gift Card Benefits For Store Owners
Below, let’s explore why gift cards are a must-have for your business.
1. Helps attract new customers
Gift cards are typically purchased as presents by customers who already know and love your brand. The great thing is, they might be gifting it to a person who’s not familiar with your brand just yet.
When the recipient comes to your store to redeem their gift card, they’ll get a first-hand experience of your offerings and brand. It’s a golden opportunity to make a positive first impression and turn a one-time purchaser into a loyal customer. However, this entails providing them with a seamless shopping experience that will encourage them to return.
Here are some key tips to accomplish this:
- Make gift card redemption easy: Provide a straightforward and hassle-free process to redeem e-gift cards. For instance, plugins like WooCommerce Gift Cards allow shoppers to easily claim their cards in the checkout process.
- Highlight your bestsellers: Make it easy for new shoppers to choose where to spend their gift cards! Display your most popular products and bestsellers prominently on your homepage or product pages to guide new shoppers.
- Provide stellar customer support: New customers may have questions, so be prepared to offer prompt customer support. Consider adding a live chat feature on your website or a FAQ section to answer common queries.
2. Generates immediate cash flow
82% of small businesses fail due to cash flow problems. It’s a common problem for store owners, and adding gift cards to your product lineup can help.
Gift cards help improve cash flow by giving you access to instant funds. Once a gift card is purchased, you receive the payment upfront even before any products are redeemed. This boost in cash flow can help support the growth of your business. With more revenue, you can reinvest in marketing efforts, replenish inventory, or cover operational costs.
3. Increases average order values
Gift cards also have a positive impact on average order values. According to industry insights, 68% of shoppers tend to spend more than the actual value of their gift cards. This may likely be due to the psychology of “free money”, where customers are more inclined to spend extra since a part of their order is covered by the gift card.
This is good news for store owners. Apart from bringing in new shoppers to your store, gift cards also encourage higher-value purchases. As customer add more items to their carts, they’re also actively exploring your offerings, discovering products they may not have initially considered buying!
4. Fits well into seasonal marketing efforts
We can’t miss this one if we’re talking about gift card benefits: they’re excellent for seasonal marketing campaigns! During holidays and special occasions, shoppers are on the prowl for thoughtful and convenient gifting options. Gift cards meet this demand, offering customers a quick and versatile gift for their friends and family.
There are also plenty of ways you can market gift cards creatively to enhance their appeal. For instance, you can create themed gift cards for different occasions, or limited-edition designs that feel exclusive. Likewise, you can run limited-time discounts on gift card purchases or bundle with best-selling items to encourage higher-order values.
5. May reduce return rates and costs
There’s always a risk associated when purchasing products for a gift: the recipient may not like the product, it may not fit, and so on. For store owners, this can lead to processing customer returns, which come with additional inventory and handling costs. Gift cards help mitigate this issue by giving recipients the freedom to choose exactly which products they want to buy from your store.
By allowing gift card recipients to pick the products that suit their needs, you reduce the likelihood of returns and exchanges. Overall, this helps enhance customer satisfaction and reduce return-related costs, which benefits your bottom line.
How To Sell Gift Cards In WooCommerce
Now that we fully understand the benefits of gift cards, you’re probably eager to dive in and start leveraging them to grow your WooCommerce store. Plugins like WooCommerce Gift Cards make this easy. With this powerful plugin, you can start selling gift cards in your store and offer customers a convenient gifting option all year round.
After installing and activating the plugin, you can begin adding Gift Card products to your store. You can choose from default templates or upload your own gift card designs.
Check out our full set-up guide below:
Frequently Asked Questions
How do gift cards work?
Think of gift cards as virtual prepaid cards: they’re loaded with a set dollar amount and can be redeemed by shoppers when they purchase in your store. Digital gift cards are popular gifting options year-round due to their convenience and flexibility. They can be sent instantly via email, allowing for easy redemption and use. What’s more, they allow recipients to choose exactly which products they want in your store, making them a thoughtful and customizable gift.
What are the benefits of a gift card?
Store owners and shoppers alike enjoy a range of gift card benefits! For store owners, gift cards help introduce their brand to new customers, increase average order values, and enhance cash flow. They’re also an excellent addition to seasonal marketing campaigns. On the other hand, for customers, gift cards offer a convenient yet thoughtful gifting option for their friends and family.
Why do people give gift cards instead of cash?
Gift cards are a popular gifting option as they offer flexibility and a touch of personalization. It gives recipients freedom to choose what they want in a specific brand or store, without the pressure of spending actual money. They’re also easy to redeem, often with just a simple code applied at checkout.
Conclusion
If you’re not yet leveraging the power of offering gift cards in WooCommerce, then you’re probably missing out on a valuable opportunity! As we’ve discovered in this guide, store owners can enjoy a range of impactful gift card benefits—especially when they’re marketed strategically.
To summarize, let’s review them below:
- Helps attract new customers
- Generates immediate cash flow
- Increases average order values
- Fits well into seasonal marketing efforts
- May reduce return rates and costs
Ready to experience these advantages? With plugins like WooCommerce Gift Cards, you can easily start selling digital gift cards in WooCommerce! This powerful tool allows you to set up, customize, and manage gift cards effortlessly, giving shoppers a flexible gifting option.
Do you have any questions about this topic? Let us know in the comments!
