Unwrapping The Benefits Of Digital Gift Cards For eCommerce Brands

A gift card is basically a prepaid card that contains a specific monetary value which can be used by the holder to make purchases at predefined stores or online stores or retailers.

A digital gift card, on the other hand, is the digital counterpart of gift cards. They’re entirely electronic, accessible by email, a mobile app or any online platform. It's also often refered to as a gift voicher, an e-gift card, or an e-gift voucher.

The best and handy examples of a digital gift card is the Flipkart Gift Card, Myntra Gift Card, Ajio Gift Card, Reliance Gift Card, boAt Gift Card, etc.

With these gift cards, customers have the choice to go to that particular website and redeem the cash in them against one or more purchases. Moreover, gift cards today are also becoming synonymous to actual gifting. In a world where you’re unsure of what to gift your friend, colleague or a family member, sending them a personalised digital gift card loaded with credit is the easiest way to celebrate their special occasion and be a part of their happiness.

Each gift voucher also has a unique code or link that grants the owner an access to the credited amount which they can use at the time of checkout.

Unlike physical gift cards, digital counterparts enhance convenience and allow recipients to easily access them on the go. Moreover, they offer flexibility, can be created and sent instantly, and ensure a seamless and lovable shopping experience.

While we've given a gist around the benefits and importance of gift cards, let’s take a deeper dive into how these e-gift vouchers help eCommerce brands increase average order value and business conversions.

Digital gift cards effectively resonate with the desires of a modern shopper. By allowing shoppers to send personalised gift vouchers with a flexible amount of credit, eCommerce brands indirectly increase brand recall, conversions, and hence, higher purchases on their platforms.

Digital gift cards act as a gateway to upselling and cross-selling. When shoppers redeem their e-gifts on an eCommerce brand’s website, they often find themselves adding more items to their cart to maximise the value of their voucher. This not only elevates the brand’s average order value but also introduces shoppers to a wider range of products.

Another benefit of offering digital gift cards is that they push shoppers to meet a minimum purchase threshold to unlock the complete value of their e-gift cards. This strategic approach compels shoppers to explore more products or make larger purchases. This, in turn, leads to increased average order value.

Gift vouchers serve as a very handy and powerful tool in combating the serious problem of cart abandonment. When a customer gets to leverage a gift card while making a purchase, 9 out of 10 times they’ll complete the transaction. There's a basic funda behind it. The amount in most gift vouchers can be redeemed only once per purchase. This means that if a customer enters their voucher's details and abandons the cart, they’ll lose the leverage. That’s why gift cards help reduce cart abandonment rates.

It so happens that many times shoppers wish to purchase an item but do not go through with it for many known reasons. Digital gift cards serve as a perfect solution for such indecisive shoppers. The flexibility they offer allows people to choose what they truly desire or want to buy, making the purchasing decision less daunting and increasing the chances of conversion.

By adding time-sensitive promotions to gift vouchers, eCommerce brands can motivate shoppers to take the desired action faster than usual. For instance, a person receives a digital gift card from their employer for a job well done. However, the card comes with a validity period of about 3 months. The person, in such a case, is hit with a sense of urgency because if they do not make the purchase within the defined time frame, the the voucher will expire. This urgency not only helps boost business conversions but also adds a layer of excitement to the shopping experience.

Gift Cards are increasingly gaining popularity among eCommerce businesses. More and more direct to consumer (D2C) brands are now leveraging gift voucher options to more customers onboard.

However, to offer such service end-to-end, GoKwik now enables its partner merchants to embed a Gift Card application on their checkout seamlessly. Shoppers with gift card codes can redeem them at the time of checkout and take complete advantage.

With this application, GoKwik also offers complete control to partner merchants to activate/deactivate gift cards, which ensures the highest level of flexibility and customisation at the brand’s end.

The feature further guarantees a seamless and industry-first experience to shoppers enabling them to effortlessly use their gift cards within the GoKwik checkout system.

The image above is a perfect example of GoKwik’s Gift Card application on one of the leading audio and wearable brands of India. Shoppers can simply add their gift card number in the box and redeem to get additional discount on their purchase (basis the credit available in the cart). It’s that simple!

By using this application, more than 500 brands across many categories such as electronics, fashion, beauty and personal care, home decor, and health and wellness have witnessed increased sales, higher revenue streams, and customer loyalty.

Besides these, brands have also been able to gather better customer insights. This helped them understand shopper behaviour and preferences in a better manner and come up with unique strategies to target and retarget these cohorts for boosting future sales.

Wish to know about GoKwik’s Gift Card application? Get in touch with us today!