Finding the right gift is a challenge almost all of us face at some point in our lives. There are so many different occasions when you might need to buy a gift - a housewarming, graduation, birthday, and so on. Sometimes you’re buying for multiple people all at once, like during the holiday season. Year-round there are reasons to look for gifts both big and small, meaning it seems like a perpetual cycle of “think of gift, look for gift, research gift, buy gift”.
And if you operate an ecommerce business, then you’re also thinking year-round about how to get people to buy those gifts from your brand. So you’re both the gift buyer, and the gift provider, depending on the time of year. There’s one gift idea, however, that’s often overlooked but rarely unwelcome when given - gift cards.
People like receiving gift cards. In one Bank of America survey, 96% of respondents said they were happier or just as happy receiving gift cards instead of a physical gift. According to the NRF, gift cards are the second most popular gift consumers intend to buy for the upcoming holiday season above toys, books, games, and food.
But the question still remains - why would a customer buy a gift card instead of a product? Does the customer looking to buy a gift, really want to buy a gift card? You put so much time and effort into developing your products, promoting them, crafting the perfect product page, just so customers will consider them for purchase. Yet here we are telling you that there are many times when they simply don’t want to buy a product.
Well, as it turns out, there are many reasons why customers truly do want to buy gift cards instead of your physical products:
Unfamiliar with brand or product
When you’re buying a gift for someone else, it’s a gamble as to whether or not you actually understand much about the hobby or interest they have. Let’s say your friend is really into making their own coffee at home, and you drink coffee but you’re not nerdy about it. How confident would you feel spending over $100 on a piece of coffee equipment? And especially as it’s a gift, you want it to have some element of surprise so you don’t want to just ask them what they’d want. You start to see where the real difficult in gift buying arises.
And that’s the case for many your gift buying customers. Some customers will already know your brand or your products, and they’re introducing your brand to a loved one as a gift. However, oftentimes the customer is searching for someone else and they’re not familiar at all. In these cases, gift cards are a lifesaver - the surprise of a gift, without the stress.
They’re worried about shipping times
Especially during key periods of the year like the holiday season, logistics become tricky - to put it lightly. Over the years we’ve seen plenty of supply chain issues affect shipping, and that’s on top of the usual pressure we see in the lead up to the holidays. As customers see these issues in the news and the closer they get to an event, they start to worry about if a physical product will even arrive on time. That makes gift cards a more attractive option, as there’s no awkward “I did order something but it didn’t arrive on time”.
They’re not sure which product to buy
Similarly to when a customer maybe isn’t familiar with your brand or products, sometimes they simply aren’t sure what to buy. They might even already know your brand, and be well educated in your product category. However part of giving a gift is the element of surprise, and that can be tricky if you want to get something they’ll definitely like or want. For example, if a recipient really like a specific brand of clothing then a customer is unlikely to know what from that brand they already have in their closet. Gift cards allow the customer to demonstrate that they know their recipient by understanding the brands and products they like, but without having to try and choose something specific.
They want to give the gift of choice
It’s a good feeling to be able to treat yourself to something you really want. And that’s part of what a customer is giving to their gift recipient by giving a gift card. That feeling of choosing something they really want, but maybe wouldn’t normally buy for themselves. This idea of giving the gift of choice means that if a recipient has a brand they like or a hobby they buy equipment for, they can get something specific that the gift giver may not have thought of.
How to do more with gift cards
Customers and gift recipients alike enjoy gift cards. They bridge the gap between just giving someone cash, and buying a physical product. Cash can often end up in a wallet and spent on something like groceries or gas and then the recipient forgets that they were ever supposed to buy something special for themsleves. A gift card is specific, and can only be used to treat themselves. They make things easier for the person buying a gift too, whether that’s due to a lack of familiarity with a product, or because they need something great last-minute.
So, as an ecommerce merchant, you have some leg work to do to make it easy for the customer to buy and send gift cards. Here are some quick and easy ways you could do that right now:
Upgrade your gift cards with Govalo
If you manage your store using Shopify and are using the default gift card that comes out-of-the-box with the platform, it’s time for an upgrade. If you want to improve the experience of buying a gift card for your customers, Govalo offers a suite of features designed to make special the process of buying a gift card. That includes adding gift notes, selecting a date to send it on, customizable gift card images, and more.
Add them to primary nav
You want it to be as easy as possible for customers to find your gift cards. However they’re often hidden at the bottom of a catalog page. During key times of the year like the holiday season, making your gift cards visible and easily accessible is essential. An easy way to achieve this is to add a link to your gift card to your store’s primary navigation. That way it will follow customers around the store, serving as a handy reminder that they can always purchase a gift card.
Add to gift guides and temporary collections
In the spirit of increasing visibility, it helps to add your gift card to any guides you publish or collections you create. When customers are looking for gift ideas and use these resources, they might not immediately think of gift cards. By including them in gift related parts of your site, you’ll increase their visibility and make sure they’re front of mind for customers.
Promote on social media and via email
Whilst we often talk about gift buyers as new customers, it’s still worth engaging with your existing customers about gift cards. That way if they’re asked by a friend or family member what they’d like as a gift, they might suggest a gift card for your store. Using the channels your customers engage with most - social media and email marketing - will ensure you get the message across effectively.
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Gift cards are a versatile, unique product in your store. They’re not just helpful for your customers, but for the long-term retention goals for your store. After all, you get two customers in one order - the person who originally bought the gift card, and the one who uses it. The recipient will also often spend more than the value of the card, so you also get even more from that one gift card order. By understanding why customers might choose to buy a gift card and making it easy to do so, you’ll put your store ahead of the pack when it comes to gift buying.