Mobile Wallet Gift Cards will have an impact this Christmas

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Digital Gifts for Christmas

In 2015 the number of e-gifts increased by 80% compared to the previous year*. There is a significant trend in how consumers are switching their preference towards e-gifts. Some of the reasons for this increased popularity are:

  • Ease-of-use (can be spent online, in-store)
  • Personalisation options
  • Fast delivery (even virtually, or SMS, email, social media etc)

Retailers soon realised that this trend can be leveraged to incorporate e-gifts into rewards and loyalty programs.

E-commerce gifts christmas

E-gifts as an Omni-channel experience

Consumers  are quickly learning to move from shopping at physical stores to shopping online, moving onto their mobile devices and then back again, and want to go through this process friction less.

Almost 90% percent** of gift card recipients wish to be able to redeem their cards online or in-person. E-gifts are the perfect answer to this need.

NOTE: download our Customer Loyalty and Engagement Report here to find out more about Omni-channel.

Matching e-gifts with loyalty programs during holiday season

Holiday shopping is the perfect occasion for consumers to make some purchases while taking advantage of loyalty programs at the same time. Retailers can simplify the redemption process by allowing shoppers to use their rewards via multiple channels, or even give those rewards away as a gift to someone else.

Once the e-gift reward is received, the recipient can print it, store it on their phone, save it to their Mobile Wallet, or even re-gift it completely.

Brand awareness and engagement

Usually, when the paper coupon is cashed the experience and interaction with the brand is over. With digital gifts the brands can stay on top of mind perpetually. See how Subway did this with the Forever Coupons on mobile wallet.

In fact, as the reward is installed or stored, it acts as a super-bookmark in the customer’s mobile wallet. Furthermore, once the reward is redeemed, the recipient is notified of his or her engagement with the brand.

Returning customers are also valuable during the holiday season. Digital gifts in fact allow retailers to re-engage and incentivise shoppers to go back to the store, either online or in person. On average, a returning customer spends about 20$ on top of the reward he or she is about to redeem***.

Conclusions

In conclusion, as holiday season approaches and retailers get ready with their promotional strategies, digital gifts should be included in the reward solutions as a part of the marketing mix. Shoppers will appreciate the flexibility and ease of use. At the same time, retailers can find more opportunities to interact with customers and convey the brand during the busy holiday season.

Please leave a comment in the comment section below if you found this article useful or if you have any question or feedback. Also, we’d recommend taking a look at this page to find out more about Mobile Wallet and integration of the latest mobile technologies in solutions for retail.

*Mercator Advisory
**/***Retail Gift Card Association
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