Electronic gift cards (eGift cards) offer many of the same benefits as their physical counterparts. In both cases:
However, there are important differences in how physical cards and eGift cards work. Before offering either option at your business, it is important that you understand the relative pros and cons of each.
So, what is an eGift card – and how is it different from a traditional gift card? The main difference between these payment options is that customers can buy and share eGift cards digitally. By contrast, traditional gift cards require physical materials and they often involve direct contact among merchants, givers, and recipients. eGift cards can usually be redeemed in-store as well as online, and vice versa for physical gift cards.
Below are just some of the potential advantages of offering electronic gift cards at your business:
The most obvious benefit of using electronic gift cards is that you introduce a new way to sell your goods and services. In fact, you are technically making a sale right away – without giving up any inventory or services at the moment.
Both physical and electronic gift cards provide a way to reach new customers. Your customers may be introducing your brand to new people who have not patronized your business before.
Electronic gift cards help create another avenue through which to connect with customers (old and new). In fact, Clover digital gift card technology integrates seamlessly with most sales and CRM platforms. Not only does automated reporting save you valuable time, but it also makes it easier to launch and manage loyalty programs that could help drive even more sales in the future.
If you sell directly to consumers – instead of to other businesses – it could be worth learning how to use eGift cards in your operations. However, some business models are a better fit for this payment option than others.
Gift cards are incredibly common in the retail sector, with most customers already knowing how to buy gift cards from their favorite brands. If you also manage a retail store, adding eGift cards is a great way to generate more sales.
Are you an online retailer looking to improve the eCommerce shopping experience for your customers? Add the ability to redeem digital gift cards during checkout. You should also add an extra sales page so that customers know how to buy gift cards online for their friends and family members.
Do you have loyal customers who come back to your restaurant week after week? Imagine how much more business you could generate if those patrons shared their experiences with others. Adding eGift card options may allow you to expand your reach and wow entirely new customers with your delicious meals.
Gift cards aren’t just for full-service restaurants. Many fast food and fast casual eating establishments have also started offering this payment option to their patrons. It would be well worth your time considering how many more sales you could start generating by adding electronic gift cards to your QSR.
From massage therapists to hairstylists to landscapers, there are many services that lend themselves to electronic gift cards. If your business is one that could benefit from more “word-of-mouth” advertising, offering eGift cards may be an easy (and profitable) way to promote your services to new clients.
With traditional physical gift cards, customers would normally have to visit your business in-person to pick up a physical piece of plastic. Then, they have to hand-deliver or mail that gift card to the intended recipient. Some gift givers like the personal touch of actually giving a physical gift card to a recipient rather than sending an email. In this instance, some retailers and service providers also offer the option to purchase a physical gift card online that can be mailed or delivered to the recipient.
At Clover, we support physical gift cards – complete with branding options and easy account management. However, our digital gift cards offer several important advantages to your customers:
This convenience is hard to beat – especially when making last-minute purchases around busy holidays such as Valentine’s Day, Easter, and Christmas. Gift cards are also a great way to celebrate special occasions like anniversaries, birthdays, and graduations. They allow the receivers to indulge themselves.
At Clover, we specialize in the full spectrum of gift card tools – complete automated account management and seamless integration with all Clover POS devices and software. In addition, you can expand our gift card technology with any number of apps from the Clover App Market. Whether you choose to design custom digital gift cards, physical cards, or both, we offer a complete suite of customization tools to help ensure that your cards truly reflect your brand.
To learn more, schedule a free consultation with our merchant services team or visit our dedicated gift card page today.
New & Notable in the Clover App Market: June 2021
How to register your small business
Terri Does Desserts