Unlocking the Power of Digital Gift Cards to Reduce Cart Abandonment

Reducing cart abandonment and increasing sales are two of the biggest challenges facing eCommerce stores today. There are numerous successful strategies to tackle these issues, from optimizing site performance to enhancing the checkout process. One often overlooked yet highly effective solution is offering digital gift cards on your Shopify store's product pages when products are out of stock. 

Gift cards in general provide convenience to customers, and so can also serve as powerful tools for driving sales when products are out of stock. And as a bonus, they can even deter customers from turning to a competitor. 

Today we'll explore the impact of gift cards on eCommerce success, and the benefits of integrating the Govalo gift card app with Shopify.

This app fills so many gaps in the gift card space for us – sending to a recipient, scheduling the send to recipient (i.e., TRUE gifting), minimizing win-back strategy for sold-out items with the option to buy a gift card instead. - House of Wise

Understanding Cart Abandonment: A Persistent Challenge

Cart abandonment occurs when shoppers add items to their online shopping carts but leave the store before completing the purchase. According to recent studies, the average cart abandonment rate across all industries is a staggering 70.2%. Yikes!

There are various reasons why customers abandon their carts, such as  unexpected costs, lengthy checkout processes, and concerns about payment security. Or customers might simply be indecisive  or change their mind. Cart abandonment and the reasons behind it are especially tricky when it comes to customers who are researching and purchasing gifts. They’re more likely to have that indecision as they may be unfamiliar with your brand or products.

Addressing these concerns often requires employing a variety of strategies, and gift cards emerge as a highly valuable tool..

So, what are the real benefits of gift cards in eCommerce?

The Power of Gift Cards in eCommerce

Gift cards offer several benefits that can help alleviate common issues leading to cart abandonment and drive sales:

1. 1. Convenience and Flexibility: Gift cards give customers a convenient gift option, allowing recipients to choose their preferred products. This flexibility encourages purchases and reduces the likelihood of abandoned carts resulting from uncertainty or hesitation.
   
   
2. 2. Customer Acquisition and Retention: Offering gift cards can attract new customers to your store, as they may be purchased as gifts for individuals who have yet to shop with you. Moreover, gift cards can help retain existing customers by incentivizing repeat purchases and fostering brand loyalty.
   
   
3. 3. Increased Average Order Value (AOV): Gift cards often lead to higher AOV as recipients may spend more than the card's value when purchasing. In fact, according to one survey, 61% of consumers typically spend above a gift card’s value and are 2.5x more likely to pay full price. This upselling effect can significantly boost revenue and offset potential losses from abandoned carts.
   
   
4. 4. Promotional Opportunities: Gift cards can be used in promotional campaigns to incentivize purchases or reward customer loyalty. Offering discounts or bonuses with gift card purchases can encourage customers to complete transactions and reduce abandonment rates.

Turn abandoned carts into a winback opportunity

Let's say your customer abandons the cart in hopes of alleviating some of their decision fatigue. They return to the cart the next day to complete their purchase, only to find an item out of stock. This creates confusion for the customer who was on the road to deciding to purchase from your store. They’re unlikely to sign up for out-of-stock notifications - if they’re looking for a gift then they most likely have a time limit for buying something so can’t afford to wait. 

But what if you could replace the out-of-stock product with a gift card instead? This means you secure the sale and ensure they return later to purchase the product they wanted from your store. 

Turning Out-of-Stock Products into Gifting Opportunities

Out-of-stock items can be a significant roadblock for eCommerce merchants of all sizes, often leading to lost sales and frustrated customers. Products usually display an "out of stock" message, which may prompt shoppers to look elsewhere. However, this approach misses an opportunity to convert those potential customers into revenue. Enter digital gift cards.

Store owners can offer an alternative solution when items are unavailable by offering digital gift cards on product pages. Instead of leaving empty spaces or generic messages, customers can purchase a digital gift card for the desired product. This keeps the sales funnel active and provides a convenient gifting option for shoppers. 

Enhancing Customer Experience

The implementation of digital gift cards on product pages goes beyond addressing stock shortages—it enhances the overall shopping experience. Customers appreciate having options, especially when faced with temporary unavailability after decision fatigue. By offering digital gift cards as an alternative, merchants demonstrate flexibility and commitment to customer satisfaction. It's a winning strategy for all.

If the intended purchase was for a gift, digital gift cards could be customized and personalized to the intended recipient, adding a thoughtful touch to the shopping experience with your Shopify store. Customers can select designs, add personal messages, and even schedule delivery, making the gift-giving process more meaningful and convenient. This level of customization fosters a deeper connection between the brand and the consumer, potentially leading to repeat purchases and brand advocacy.

Leveraging Govalo Gift Card App for Shopify

Integrating a reliable gift card solution into your Shopify store is crucial for unlocking the full potential of gift cards.. Govalo is a feature-rich gift card app designed specifically for Shopify merchants. Here’s how Govalo empowers eCommerce businesses:

1. Seamless Integration: Govalo seamlessly integrates with your Shopify store, allowing you to effortlessly set up and manage gift card offerings without any technical hassle.
   
   
2. Customization Options: With Govalo, you have complete control over the design and branding of your gift cards, ensuring they align with your store's aesthetic and messaging. Customizable templates and branding elements enable you to create visually appealing gift cards that resonate with your target audience.
   
   
3. Flexible Pricing and Redemption: Whether you want to sell fixed-value or customizable gift cards, Govalo offers flexible pricing options to suit your business needs. Additionally, recipients can quickly redeem their gift cards during checkout, streamlining the purchasing process and reducing friction.
   
   
4. Advanced Reporting and Analytics: Gain valuable insights into the performance of your gift card campaigns with Govalo's comprehensive reporting and analytics features. Track sales, monitor redemption rates, and identify trends to optimize your gift card strategy for maximum impact.
   
   
5. Automated Marketing Tools: Govalo enables automated email notifications for gift card purchases, ensuring a seamless experience for buyers and recipients. Furthermore, you can leverage these notifications to promote special offers or encourage additional purchases, driving further engagement and revenue.