Americans spend roughly $170 billion every year on gift cards. 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 a different set of 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 gift cards. 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 clearly display business branding.
However, some gift cards can be cumbersome to use if they’re not accepted in all places. Over half of all Americans have an unused gift card, meaning that they can be lost or forgotten somewhere.
E-cards are convenient to give and get. They can easily be pulled up on a smart phone or used to shop online.
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 purchase. Because they go directly to the recipient, there’s less of a chance for them to be stolen or get caught in a scam transaction.
You can offer them just as easy on your website or on a third party’s site. Instant digital transaction allows you to offer free gift cards promos with a partner.
Because you don’t have to produce an actual card, your costs are much lower. Losing the card is much harder and are available as long as customers have access to their email.
E-Gift Card Drawbacks
As with everything, there are a few cons with 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. If your key demographic is older, traditional gift cards might be a better choice than something accessed online.
Regular gift cards are more visible which helps with brand awareness. Some people prefer the presentation of a physical gift as well.
E-Gift Cards and Your Business
while there are a few cons to e-gift cards, there are way more pros. However, every business is different, and you have to asses your needs before making a decision.
Take a look at what your gift card goals are 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 forget it in a sock drawer. Check out our other business articles to discover how you can better connect with customers.