How to Use Gift Cards in eCommerce? Benefits & How-to Guide

Gift cards are like customizable presents. You just need to fill out the amounts; the recipients will be able to choose what they want within the budget.

Implementing gift cards on your eCommerce website is a strategic move that can boost sales, attract new customers, and increase brand loyalty. It can also encourage repeat purchases and positive brand associations. And another reason for eCommerce experts to implement this feature is to clear the excess inventory or push particular slow-performing products.

In this blog, I’ll tell you all about the benefits and implementation of gift cards. But first, let’s see what gift cards are.

What are Gift Cards in eCommerce?

Gift Cards, physical or virtual, are essentially digital prepaid vouchers that hold a specific monetary value. The value can be chosen by the gifter. These vouchers can be redeemed for products or services offered by the online store that issued them.

They function like a virtual gift certificate. Customers can purchase items on your site without using their own credit or debit cards. Here’s a breakdown of their key characteristics:

• Digital or Physical: Gift cards can exist in two forms – digital or physical. Digital gift cards are delivered electronically via email or text message, containing a unique code for redemption at checkout. Physical gift cards are similar to traditional plastic gift cards found in stores, mailed to the purchaser or recipient.
• Prepaid Value: They come preloaded with a specific amount of money chosen by the buyer. This value can then be used for purchases on the issuing e-commerce store.
• Redemption Process: Gift cards are redeemed at checkout by entering a unique code associated with the card. The value of the gift card is then deducted from the total order amount.

Gift cards in eCommerce are important. They help drive sales growth, expand customer base, and create lasting connections. Let’s dive further into a few other reasons the best eCommerce services integrate this feature into their websites.

Benefits of Using Gift Cards in eCommerce

Gift cards offer a win-win situation for both businesses and customers in the world of eCommerce. Here’s a breakdown of the advantages for each:

For Businesses

• Increased Sales: Gift cards are like sales double-headers. The initial purchase generates revenue, and the recipient’s spending further boosts sales. Studies suggest that gift card recipients often spend more than the actual value on the card.
• Enhanced Brand Awareness: Gift cards act as mini-brand ambassadors. When gifted and redeemed, they introduce new customers to your brand. That means a better reach.
• Customer Loyalty and Retention: Gift cards provide a convenient gifting option for existing customers. That means positive brand associations and repeat purchases by both the gifter and recipient. It makes for one of the best eCommerce customer retention strategies.
• Inventory Management: Gift cards can be a strategic tool for managing inventory. Offer them alongside slow-moving products to incentivize purchases.
• Promotional Opportunities: Gift cards can be bundled with products. You can offer them as special promotions to drive sales and create a sense of urgency.

For Customers

• Convenient Gifting: Gift cards eliminate the stress of choosing a specific product. They offer flexibility for the recipient, so they can select items they truly desire.
• Wider Choice: Gift cards open doors to a wider selection of products compared to traditional gifts with limited choices.
• Budget-friendly: Gift cards provide a way to give a thoughtful present while adhering to a specific budget. The recipient can shop within the preloaded value.
• Safe and Secure: Digital gift cards offer a safe alternative to physical gifts that can be lost or stolen. The recipient receives the code electronically, eliminating the risk of loss.
• Immediate Use: Digital gift cards provide instant gratification. Recipients can redeem them directly upon receiving the code, eliminating the wait for a physical card to arrive.

These are just a few reasons why the experts opt to implement this feature. The method can be seen in the next section.

How to Use Gift Cards in eCommerce?

Using gift cards is quite easy. A person buys a gift card for a particular site. That card is then used for a purchase by the recipient. During checkout, they’ll enter a code or swipe the card, just like a debit card. The purchase amount is deducted from the card’s balance. Although this feature is quite straightforward, its implementation is a little more complex. Here’s how the process goes:

Choose Your Platform

First off, you need to choose your implementation platform. If you are using eCommerce buildings like Shopify, WooCommerce, or Magento, you have two main options. You can either go for the built-in gift card functionality or third-party gift card solutions.

Built-in gift card functionality offers convenience, user-friendliness, and cost-effectiveness. But there are limitations as well. They may lack advanced features like bulk generation, multi-denominational options, detailed reporting and analytics, and more. And there is little room for customization.

On the other hand, third-party solutions include these features and much more. You can have greater control over your gift card program. And you can integrate it with marketing automation tools to streamline the process and results. For example, WooCommerce has plugins like WooCommerce PDF Vouchers. You can install this plugin and start offering gift cards with ease.

However, the third-party solutions can be more expensive due to monthly or transaction-based fees. And you may need additional technical expertise for setup and use. The eCommerce development experts know how to use these tools effectively.

Design and Customize

To make physical gifts more attractive, you decorate it with colorful wrapping papers, ribbons, and more. Same goes with eCommerce gift cards. They shouldn’t be boring. They can be a fun and visually appealing way to represent your brand and add a special touch to the gifting experience.

Here are a few key aspects to consider for the design and customization of your eCommerce gift cards:

• Templates: Most platforms offer pre-designed templates to get you started. However, don’t be afraid to customize them to reflect your brand identity.
• Color Scheme: Align the color scheme of your digital gift cards with your brand’s primary and secondary colors. This creates a sense of familiarity and reinforces brand recognition.
• Imagery: Consider incorporating high-quality visuals that resonate with your brand and target audience. This could be product images, lifestyle photos, or thematic illustrations.
• Messaging: Include clear messaging conveying the purpose of the digital gift card (e.g., “The gift of choice” or “[Your brand name] Gift Card”).
• Custom Messages: Allow purchasers to include personalized messages to the recipient within the digital gift card.
• Customizable Designs: Provide a limited selection of design themes or elements that customers can choose from to personalize the digital gift card’s appearance.
• Maintain Brand Consistency: Ensure your gift card design aligns with your overall brand aesthetic for a cohesive customer experience.
• Mobile-friendly Design: Since many gift card purchases might happen on mobile devices, ensure your digital gift card design is optimized for mobile viewing.
• Readability and Clarity: Prioritize clear and readable text throughout the gift card design, ensuring all information is easy to understand.

With these strategies, you can create quality gift cards that not only function well, but also look appealing. So it contributes to the brand experience.

Set Up Redemption Rules

After designing the gift cards, you have to establish clear redemption rules. These rules define how customers can use their gift cards and ensure a smooth buying experience for everyone. Here’s what you need to do:

• Define a timeframe: Determine how long your gift cards will be valid after purchase. A common range is 1-5 years, but you can choose a timeframe that aligns with your business goals.
• Communicate clearly: Clearly display the validity period on the gift card itself (physical or digital) and during the purchase process.
• Specify exclusions: Outline any products, categories, or services that cannot be purchased using gift cards. This could be due to specific product margins, licensing restrictions, or other considerations.
• Transparency is key: Communicate any usage limitations clearly on the gift card itself (physical or digital) and on your website’s gift card information page.
• Charging fees: It’s generally not recommended to charge redemption fees on gift cards. This can create a negative customer experience and discourage gift card usage.
• Focus on value: Instead, focus on the benefits gift cards offer your business, such as increased sales and brand awareness.
• Returns and Exchanges: Define how gift cards factor into returns and exchange processes. Will remaining balances be refunded or credited to a new gift card?
• Card Balance Inquiries: Establish a clear method for customers to check their gift card balance online or through customer service.

When setting up redemption rules, prioritize clarity and customer experience. Provide all relevant information on your website’s gift card information page and ensure it’s easily accessible to customers.

Marketing and Promotion

Once you’ve implemented your eCommerce gift card program, it’s time to tell the masses about it. A well-executed promotion campaign would significantly increase brand awareness. Integrate it with the eCommerce digital marketing strategies.

• Dedicated Gift Card Page: Create a dedicated landing page on your website showcasing your gift card program. Include clear visuals of your digital and physical gift card designs (if applicable), along with different denomination options and redemption instructions.
• Prominent Placement: Feature your gift card program prominently on your website. Include clear calls-to-action (CTAs) to purchase gift cards throughout your homepage, product pages, and checkout process.
• Organic Posts: Announce the launch of your gift card program on your social media platforms. Highlight the convenience and thoughtfulness of gifting with your brand. Create engaging content showcasing different gifting scenarios where your gift cards can be used.
• Paid Advertising: Consider running targeted social media ad campaigns to promote your gift cards to a wider audience. Leverage social media advertising platforms to define specific demographics and interests to reach your ideal customer base.
• Dedicated Campaigns: Design targeted email marketing campaigns to promote your gift card program. Segment your email list to send personalized messages to different customer groups. For example, target upcoming holidays and occasions like birthdays or anniversaries in your email marketing efforts.
• Promotional Offers: Consider offering exclusive discounts or promotions on gift cards during specific campaigns to incentivize early adopters and boost sales.
• Partner with Influencers: Collaborate with social media influencers relevant to your brand and target audience. Encourage them to showcase the benefits of gifting with your e-commerce gift cards through creative content or product reviews.
• Press Releases: Issue press releases announcing the launch of your gift card program. Target relevant media outlets and journalists who might be interested in covering your story.
• Gift Card Giveaways: Host contests or giveaways on social media or collaborate with other businesses to offer gift cards as prizes. This can generate excitement and brand awareness around your program.

These strategies can help you effectively spread the word about your eCommerce gift card program. So the business growth potential can be leveraged to its fullest.

For the best implementation and usage of gift cards on your eStore, you can consult with our eCommerce development company. No matter your platform, we can help integrate gift cards and similar features to your eCommerce website.

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FAQs on Implementing Gift Cards in eCommerce

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Conclusion

In eCommerce, gift cards can be a great way to boost your business. They offer lots of benefits: convenience, flexibility, and more. Customers love to use them for last-minute gifts and special occasions. You can also use them to attract new customers and increase brand exposure.

Many e-commerce platforms offer built-in gift card features that integrate seamlessly with your existing store setup. There’s also third-party gift card management solutions. These services specialize in managing gift cards and offer advanced features like bulk generation, multi-denominational options, and detailed reporting.

So, do you want gift cards on your eCommerce website? Then consult with our experts today!