Holiday Must-Have: Digital Gift Cards

Missed deliveries, high shipping costs, bad weather: the holiday season is rife with uncertainty for eTailers.

That’s why digital gift cards (e-gift cards) are a dream come true: delivery is instant, there are no shipping fees, supply is limitless, and they often make for the perfect gift. Bonus: digital gift cards can be purchased up to the last minute, and appear almost instantly in the recipient’s inbox.

Your fans buy them and give them to people they have identified as strong potential fans, resulting in not 1 but 2 purchases on your site.

As much as 30% of gift cards are never redeemed, resulting in what the industry calls “breakage.” While not as ideal as gaining a second customer, breakage is still cash that your business keeps.

Gift cards give you “positive float,” meaning you collect money up front but don’t have to pay to fulfill and ship product until the card is redeemed.

As a low-cost customer acquisition tool, gift cards are hard to beat.

Learn more about gift cards and other innovative promotion ideas in our 2013 Holiday Promotion Strategies guide.

 

View Author’s posts