It wasn’t that long ago when carrying a smartphone with direct access to cash and coupons was unheard of. But today, our smartphones act as portals to all our most valuable assets.The growing penetration of internet and smartphones, places consumers in a better position to access digital gift cards, a factor complimenting the overall gift card market growth. Additionally, as eCommerce websites such as Amazon, Alibaba, eBay among others grow in popularity, digital gift cards grows too. Therefore, it is wise for business owners, of all sizes, to speculate on the benefits of offering digital gift cards, and how they can help drive new and repeat customers.
To argue the case for small businesses let’s consider this scenario:
Amanda is a real estate agent. She works tirelessly to engage with potential buyers and sellers through social media marketing, direct marketing, advertising and more. But it’s nearly impossible for Amanda to give every single prospect the attention they deserve. She wants to show her prospects they matter to her, that she wants their business quickly and effectively. Christmas is approaching and she thinks “Hey, everyone loves to receive gift cards! I’ll give everyone a $5 Starbucks card as a way to nurture my relationships.” But wait, that means Amanda must go into Starbucks, purchase a whole lot of gift cards, and mail them out individually. That doesn’t sound like a time or cost-savings scenario.
Amanda goes back to the drawing board. She goes to check her e-mail and notices a message from her manager. It’s an eGift card for all her hard work. Suddenly, a light bulb goes off. “That’s it! I can instantly purchase and send my gift cards directly to my prospects’ via e-mail.” This strategy saves Amanda hours of preparation and money associated with mailing individual gift cards (not to mention the delay to receive them).
This situation is familiar to many small-to-medium sized business owners. Additionally, small businesses rely on repeat customers and referrals for the majority of their sales. Most business owners know thatIn fact, it costs 5x more to attract a new customer than it does to retain an existing customer. That’s why creating a system to quickly reward new and existing customers is integral to their success. After building a relationship, customer spend grows alongside trust. Eventually, loyal customers spend 67% more than new ones.
The demand for digital gift cards to attract and retain consumers is growing. But don’t take our word for it…
Here are 8 statistics that prove why digital gift cards are the future of rewards:
- While physical gift cards are growing at an annual rate of 6%, digital gift cards are growing at an annual rate of 200% (CardCash)
- Digital gift cards are the fastest growing segment within the $127 billion gift card industry (CardCash)
- Global digital gift card market size expected to reach USD 160 billion by 2020. (Paynxt360)
- Fifty percent of consumers say they would prefer to have a digital gift card scanned from their phone than carry an email printout. Also, 53% say they would be interested in storing gift cards on their phones. (InComm)
- 53.2% of adults will use digital coupons this year, an increase of 3.3% over 2017 (Inmar)
- 53% of consumers expressed a desire for all coupons to be digital (Inmar)
- 63% of consumers would increase the amount of coupons used while shopping if the offers were available online (Inmar)
- 64% of consumers download a bank brand app for promotions and exclusive deals or products (WillowTree)
To understand how your business can leverage Perkalead’s eGift cards to increase loyalty and drive sales, check out our rewards tactics here.