The potential of gift cards is huge. For merchants it’s an easy way to expand the catalog and bring new customers, while for shoppers it’s an easiest way to solve the gifting puzzle. Both sides get tremendous benefits.
According to the National Retail Federation research, over the last years gift cards and certificates have been the most desired present for more than 60% of shoppers. Why? Because they let people buy whatever they truly want.
What other facts about gift cards market and psychology you need to know? What is a win-win gifting program and how to implement it? Let me explain.
1. The Psychology of Gift Cards
For many people even thinking about shopping is stressful, not to mention the process of choosing the perfect gift. It becomes a real nightmare.
People are getting too selective about the products they want. Here comes, picking out the right gift gets really complicated, time-consuming and nervous. This is where gift cards hit the golden mean: they have the cash flexibility but should be spent as gifts.
When playing with gift cards, shoppers experience less guilt. That’s why people are more likely to buy something remarkable and uncommon, something to treat themselves.
The stats prove it, 97% of the top world retailers sell gift cards online. That means, the psychological tricks work and people do admire gift cards possibilities.
2. Gift Cards Popularity
While Christmas holidays is the most popular period for buying gift cards, it doesn’t mean that the rest of the time they are thick with dust.
According to the Gift Card Retail Association research, spring-summer period is the third hottest time for gift cards after Christmas and Birthdays. More than 70% of shoppers purchase them for weddings, graduations, holidays and other occasions.
- 80% of shoppers buy gift cards for birthdays
- 38% of shoppers present gift cards for graduations
- 32% of people purchase gift cards for the Father’s Day
- 24% present gift cards for the Mother’s Day
- 12% buy gift cards as a graduation present
The practice of giving e-cards for different occasions is evolving. While physical cards annual growth rate is 6%, e-cards are growing at a rate of 200%. Which makes store owners look over the gift card strategy.
3. Purchasing Habits
Gift Cards is the easiest way to increase sales. Stats prove it, 72% of shoppers with gift cards spend more than their gift card value. On average people spend 20% extra.
Gift Cards greatly help to capture new customers. When someone is given a gift card, they visit it to take a look around and redeem the card – thus, you get a perfect opportunity to interest this users and turn them into regular customers. For example, in the USA more than 40% of shoppers tried a new store because of the received gift cards.
Gift Cards are retention helpers. 72% of first-come shoppers with gift cards return to that business again.
Gift Cards is a win for store owners, gift purchasers and recipients. No more unwanted gifts, fake happiness, time-consuming present searching and a splitting what-to-give-headache.
Since selling gift cards is a great benefit how to effectively implement this functionality into your ecommerce store?
Gift Cards Solution for Magento
When we are talking about gift cards in eCommerce, we should mention that some popular eCommerce platforms doesn’t support gift cards functionality by default. Magento and its follower Magento 2 doesn’t allow you to create gift cards by default. However, this can be fixed with the help of 3rd party extensions for any taste and budget.
In this post we’ll tell you about the most feature-rich Magento 1 and Magento 2 Gift Card extensions on the market. Fortunately, they have almost identical functionality, so we can describe them both.
The extensions add gift cards functionality to your store, which includes three types of gift cards: email, offline and print.
Email gift card is sent to a gift recipient via email. It can include a message and vivid images depending on the occasion. Also, the email contains an activation code.
Offline gift card is more about a classic thing. It is physical gift card that is delivered to a recipient via post office. Hence, it has all the attributes of the traditional gift certificate in a online store.
Finally, a print-out one can be printed and presented to the recipient face-to-face.
In addition, you can implement various pricing schemes to sell gift cards more efficiently. The Gift Card extension for Magento supports three schemes: a fixed price, price range when a gift card amount can be chosen within a certain price range and a predefined list of prices.
Your shoppers, in turn, can spend only partial gift card amount when purchasing from you. This feature allows them to return later for new purchases.
Moreover, the extension lets you generate multiple gift card codes. This is not a complete gift card but a code that includes certain amount to be spend in your store. Hence, you can use this pre-generated gift codes whenever and wherever you want.
On top of that, you have a full control over gift cards and their processing in your store. You can edit both new and existing gift cards and even recharge them. Detailed statistics is available in gift cards logs to provide you with all the required information.
Gift Registry Possibilities
Gift Registry is a useful tool that allows customers to create wish lists with the products for weddings, baby showers, graduations or any other big party with guests and gifts. Gift registry tool helps to organize your wish lists more effectively and avoid duplicate presents.
Additionally, implementing gift registry allows you to attract new customers. Users with wish lists can invite their friends to purchase from you the gifts they want and need.
Baby Gift Registry extension follows similar goals. Making a registry for a baby shower is the easiest way to let people know what you really want.
On top of that, with the extension you can purchase a product from the gift registry and then ship it to the recipients address.
To sum it up, both gift givers and gift recipients get what they need. The extension solves many customer’s problems at once.
As you can see, gift giving process is quite a challenging thing. You, as a store owner, can dramatically ease the life of your shoppers, thus selling not only products but also emotions. All the sides win from the gift cards and gift registry implementation.
You get loyal and happy clients. Gift givers save time on shopping and avoid mistakes when buying gifts. Gift recipients get exactly what they need without disappointment. Just choose the right gift extensions for Magento 2 and get ready to benefit.