The eGift revolution has arrived, and retailers of all shapes and sizes should be taking notice.
Consumers are spending more time (and money) online and on their phones than ever before. eGifts - digital gift cards that are transmitted via email or other electronic means - are booming as a result, with eGift sales expected to reach $15 billion this year. With an expected annual growth of over 200%, digital gift cards are the fastest-growing segment in the gift card industry.
Still not convinced that this should be the year your business takes its gift card game online? Here are 6 statistics that make the importance of adopting eGifts sooner rather than later crystal clear.
53% of gift card buyers surveyed purchased an eGift within the last year and 94% bought more or the same amount of eGifts in the last 12 months compared to a year ago
A 2015 Blackhawk Network study revealed that, for the first time, a majority of those surveyed had purchased an eGift in the last year. Of the 53% of respondents who had recently purchased an eGift, a whopping 94% had increased or maintained their eGift spending from the year prior. Retailers wondering where rapid growth is occurring in the gift card industry need look no further.
93% of eGift Recipients Were Happy to Receive an eGift
Setting aside the obvious appeal of a 93% approval rating, what really makes this number pop is the fact that it bucks one of the most common criticisms of gift cards: that they could feel impersonal to the recipient. 85% of eGift recipients surveyed felt that “it was a personal gesture and selected just for him/her”, per a 2016 Blackhawk Network study. If 9 out of 10 people who receive an eGift feel satisfied and cared for, it’s no wonder that digital gift cards are driving gift card growth.
82% of eGift recipients surveyed spend more than the eGift’s value
Lift - the amount of money that gift card holders spend in excess of the card’s value - has proven to be a powerful revenue driver for businesses that incorporate a gift card program. Around 70% of physical gift card recipients will spend more than the value of the card they received, with the average gift card recipient spending 20% more than their card’s value. Digital gift cards are providing the businesses that sell them with comparable lift, with 82% of those surveyed spending more than the value of their card and 75% stating that they tend to treat themselves when redeeming an eGift.
46% of eGift Recipients Redeem In-Store
One benefit of a traditional, physical gift card program is that, in theory, both the person buying the card and the person receiving the card will end up visiting the location from which the card was purchased. eGifts offer recipients the flexibility to complete their entire shopping journey from the comfort of their home, but nearly half of eGift recipients surveyed say they’ve redeemed a digital gift card in-store. That’s good news for businesses who want to adopt eGifts without sacrificing foot traffic.
56% Who Have Never Received an eGift Would be Interested in Getting One
A majority of gift card buyers have purchased an eGift, and a majority of consumers would like to receive an eGift, so what’s stopping digital gift cards from becoming a fixture of any successful gift card program? It could be that...
Under 3% of Local Businesses Sell Their Gift Cards Online
While 97% of top retailers and restaurants sell their gift cards online, the vast majority of local businesses still don’t have a digital offering for gift card shoppers. With ‘Buy Local’ campaigns driving sales and engaging communities nationwide, the time has never been better to find a way to sell locally by offering gift cards digitally.
Still on the fence about adopting an eGift program? We would be happy to answer any questions you might have about how digital gift cards can help improve cashflow and satisfy your customers for years to come.