Gift cards are a cool alternative to cash or gift vouchers that usually tie consumers to a limited number of stores and offer them restricted choices. With the increase in the consumer adoption of digital gift cards, it is an excellent opportunity for companies to shift their focus to bulk gift cards. In addition to generating brand awareness and customer advantages by offering these digital gift cards, there are also many other benefits from the finance perspective. This article discusses the benefits of digital gift cards for brands.
Boost sales and revenue
The first and foremost benefit of digital gift cards is that they help companies boost their sales and revenue. During the holiday season, when pressure is high to search for a perfect gift for loved ones, consumers usually shift to the gift card option. It can be said that gift cards are a boon to last-minute shoppers. Gift cards help drive more revenue, as a gift card recipient is more likely to spend more than the e-card amount while using it.
Increase brand awareness
Another benefit of digital gift card is that it increases brand awareness. The e-card recipient might not have heard of a particular company’s brand. A gift card allows consumers to try out the company’s products and get better insight into its brand. Recipients on liking the company’s offerings might buy a similar gift card for their close ones, hence increasing brand awareness.
- Digital gift cards improve cash flow
Selling gift cards can significantly improve a company’s cash flow. Customers often purchase gift cards, give cash in advance, and redeem the same gift cards in the future. It implies that the company need not provide or ship goods in the present and, thus, can use the saved cash for growing the business. For instance, if a company sold bulk gift cards for $1 million today that weren’t redeemed until next year, that would be an extra $1 million that can be used to expand the business till the upcoming year when goods are actually to be delivered.
E-cards help gain customer loyalty
One of the major benefits that digital gift cards offer different brands is gaining customer loyalty. It is important to earn customers’ loyalty to make them stick to a particular brand. And one best way to earn customers’ loyalty is by keeping them happy and satisfied. For the customers who find an unpleasing experience with the products and are seeking a return or refund, digital gift cards, in such a situation, can ease things up and help the company retain customers.
Looking at the growth of digital gift cards in the market, the availability of bulk gift cards for online shoppers can help companies scale up their sales. Also, unlike conventional physical cards that can be lost or stolen, e-cards are more secure and convenient. Customers are now finding investing in digital gift cards a much better option for having a great shopping experience.