Retailers are finding that digital gift cards are not only what consumers want, but also can offer a wealth of information about both the buyers and the recipients who redeem the cards.
The Container Store began offering digital gift cards on its website last month with such goals in mind. Eventually it plans to create targeted promotions for customers based on the data.
More Personal and Better Incentives
Consumers want these digital gift certifications because they are not impersonal bits of plastic - and oftentimes come with incentives, according to CashStar's 2009 Pre-Holiday Online Shopper Gift Card Survey of online US shoppers. It found that 68% of online shoppers agree that buying a gift card online that can be sent via e-mail is more convenient than having plastic cards shipped to a gift card recipient. (via MarketingCharts).
The fact that this new generation of gift cards can be personalized is important to shoppers: half of all respondents said they have decided against giving gift cards in the past because they were not personal enough. The incentives that often attach to the cards also sway shoppers, according to the survey. Nearly nine in 10 (88%) indicated that they would be more likely to purchase a gift card that has an incentive attached - such as sending a $50 gift card and getting a $10 gift card for themselves.
During the holiday season The Container Store is running a Give One, Get One promotion: customers who purchase $100 worth of gift cards will have one $25 gift card added to their shopping cart to use for themselves or give as another gift.
From Ski Vacations to Frozen Custard
Digital gift cards are also being adopted in venues outside the typical retail environment. Liftopia.com, an online resource for skiers and riders to purchase discount lift tickets, began offering online gift cards just before Cyber Monday. They are available in set denominations up to $1,000, do not expire, and can be used to purchase discount lift tickets at over 120 ski resorts.
On the other end of the spectrum is Andy's Frozen Custard Shops, a regional chain in the Midwest and Texas, which also launched its own digital gift program - for mobile devices. They are delivered either on a smartphone or through email. The bar code on the mobile device is then scanned at Andy's and used just as a plastic gift card would be used.
"We are excited to lead the industry and offer our customers such an innovative gift giving option this holiday season and beyond," said Andy Kuntz, president of Andy's Frozen Custard. "The mobile virtual gift cards will work exactly like the plastic version gift cards and will be recognized by any of the Andy's Frozen Custard Shops throughout the Midwest and Texas."
