Americans spend roughly $170 billion every year on gift cards. So if your business wants a piece of that pie, have you considered offering electronic gift cards?
Electronic gift cards, or e-gift cards, are just like their regular counterparts but with different pros and cons. They’re also exploding in popularity, with an expected adoption boost of 23% by 2025.
Have questions about how your company can benefit from offering e-gift cards? We’ve got the ultimate e-gift card guide to help you make the right decision for your business.
E-Gift Cards vs Regular Gift Cards
First, let’s look at how electronic gift cards compare to regular ones. Both have multiple pros and cons and offer different benefits for your business.
Gift cards have always been easy to purchase and use. They look beautiful and make a great presentation, and display business branding.
However, some gift cards can be cumbersome if they’re not accepted in all places. In addition, over half of all Americans have unused gift cards, meaning that they can be lost or forgotten somewhere.
Pros for Your Business
There are many reasons why your business would find it better to offer digital gift cards. The ultimate goal is to make it convenient to purchase and that you’ll eventually see a high ROI.
E-cards help your customers feel secure in their purchases. Because they go directly to the recipient, there’s less chance for them to be stolen or caught in a scam transaction.
You can offer them just as easy on your website or a third party’s site. In addition, the instant digital transaction allows you to offer free gift cards promos with a partner.
Your costs are much lower because you don’t have to produce an actual card. Losing the card is much harder and are available as long as customers have access to their email.
E-Gift Cards Drawbacks
As with everything, there are a few cons to digital gift cards. It’s important to have all of the facts and make sure that you’re making the best choice for your business.
Not everyone is as comfortable with technology. For example, if your key demographic is older, traditional gift cards might be better than something accessed online.
Regular gift cards are more visible, which helps with brand awareness. However, some people prefer the presentation of a physical gift as well.
Final Thoughts:
While there are a few cons to e-gift cards, there are way more pros. However, every business is different, and you have to assess your needs before deciding.
Take a look at your gift card goals and what your customers respond to. From there, you can make the best choice for your business.
We’re confident you’ll see that digital gift cards are convenient, cost-effective and get customers to spend their cash instead of forgetting it in a sock drawer. Check out our other business articles to discover how you can better connect with customers.
