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Latest News

21st june 2023

A growing market for digital gifting!

The demand for digital gift cards, e-gifts and vouchers increased exponentially throughout 2019/2020. Data shows that the market will continue to grow. With the UK gift card industry in the UK estimated at more than £7bn.

The UK Gift Card & Voucher Association reported that ‘GlobalData forecasts that the market is set to grow 24.7% over 2019–25, with the total value of the market hitting £8.71bn by 2025’. Of this, Digital/E-vouchers have shown a major growth rate and now enjoys a 50/50 share of the market.

Retail and beyond

Where traditional gift cards were predominantly used by retailers and restaurants, online gift solutions are now being implemented by brands and businesses across multiple sectors to bolster their eCommerce offering and drive new revenue streams. Brands are now realising the long-term advantages of this technology.

Interestingly, the proportion of UK gift card buyers purchasing leisure and experience gift cards has also grown, with the average proportion of monthly gift card buyers purchasing for leisure and experience increasing to 23.0%, up from 17.9% in 2020.

But why are digital gift cards worthwhile for organisations? How are digital gift cards moving away from a cash payment to feeling of a reward?

Increase Sales

This must be the most obvious benefit. We know that implementing an online gifting solution will increase sales – just like when we implemented the solution for Theatre Tokens and they saw an 83.2% increase in sales over 2-years.

Gift cards are increasingly seen as a tool to support local businesses and high streets; 28.8% of monthly gift card purchasers in 2021 said supporting local businesses was a motivation, compared to 24.5% of purchasers in 2020.

Attract new customers

Not only does a gift card have the potential to introduce a new customer in the form of the individual it has been gifted to, but it might also attract new customers purchasing that e-gift for someone else – while they’re on your site, they’re bound to have a look around and you could win them over.

According to the GCVA, almost one in five shoppers said they had become a regular customer of a brand after being given a gift card - with 31% of Millennial/Gen Z shoppers having done this.

Increase brand awareness and engagement

These types of solutions provide the opportunity for both brand awareness and further marketing opportunities to individuals. With those purchasing the gift being an advocate of your brand and those receiving it starting a new or repeat experience with you. Individuals experience less guilt when paying with a gift card, compared to credit cards of cash. Knowing that the gift card was intended to be indulgent, people don’t feel that they need to spend it on necessities.

Over half of all those receiving gift cards over the past three years have been introduced to a new brand or organisation via this format.

Capture useful data

Virtual gift solutions can provide a way to collect useful data that will help you better understand and serve your customers. And once you’ve collected this data and start to offer a more personalised experience, you build trust and increase loyalty.

The Future of Loyalty

Looking ahead, the future of loyalty is shaping up to involve a diverse digital wallet that encompasses debit/credit cards, airline miles, cryptocurrencies, and gift cards. This transition is already in motion, with 88% of consumers using digital wallets.

Consumers are redefining payment methods as interchangeable currencies, and gift cards will be a significant part of this shift. A unified digital wallet will allow users to pool various currencies for seamless point-of-sale transactions. This future scenario envisions utilising accumulated rewards to pay for items, enhancing convenience and loyalty integration.

Businesses seamlessly fusing gift cards and stored value with digital loyalty amplify customer value and brand affinity. Streamlining loyalty programs for enhanced user experience and supplementing in-store benefits through digital wallets keeps businesses competitive.

Technology to power your digital gifting

Through my business, Reuben Digital, we’ve provided the technology to power e-gift solutions for partners and directly to our own clients such as Theatre Tokens and National Book Tokens, The Golf Gift Card and many leading High Street brands.

Its important that the solution is robust, secure, and scalable, and it’s not just for the big retailers. We’ve helped organisations of every size implement a solution that has helped them quickly tap into new revenue streams. A typical gift card solution includes:

  • Hosted eGift Ecommerce platform (Microsoft Azure)
  • Connection to processor solution existing or new
  • Full suite of APIs for Ordering & Redemption
  • Redemption plug-in for Open Source eComm such as WooCommerce
  • Accounts integration with (XERO) and other leading accounting software platforms
  • And we work with trusted partners for:
  • Processors (Jigsaw Business Solutions, GIVEX, Eagle Eye, FIS, SAVVY)
  • Network Providers (Blackhawk Network Solutions, INCOMM)
  • Physical Card Production & Fulfillment
  • Payment Providers (Stripe, Paypal, OPAYO, WorldPay, Barclays, Cardstream)
  • The benefits of implementing a virtual gift card solution
  • Increase Sales

 

Join the e-gift revolution

As the digital gifting market continues to grow, more and more consumers will expect brands and businesses to have these solutions on offer. If you’re ready to find out how Reuben Digital can implement a solution to transform your business, I would love to hear from you.

Thank you.