The Evolution of Digital Gifting
Since being introduced back in 1995, digital gifting has grown in momentum– particularly over the last ten years. In this fast-paced world of technology that we live in, digital gifting is an essential requirement for any business that wants to keep up with the pace and maintain their market position. But what exactly is digital gifting? Well, digital gifting refers to the transference of value (a gift) in a digital format.
Over the years, more and more companies have started offering the option to purchase eGifts and digital vouchers - especially those that have a dominant online presence. At the very beginning, gift cards came in the form of paper vouchers. Before long, paper was swapped with plastic due to counterfeiting, and then finally as technology advanced, digital gifting became mostly digital. There are two main reasons that digital gifting has continued to increase in popularity over the years: speed and personalisation.
At the Click of a Button
With the ability to buy eGifts and vouchers online, digital gifting is the first choice for many when it comes to present buying. Being able to shop quickly and effectively, without much effort, is a very appealing concept to a lot of people. With the option to swiftly go online and buy a gift voucher or eGift at the click of a button, traipsing round high street shops and online stores are quickly becoming a thing of the past. Convenience and ease are very much basic requirements for many in this modern-day world that we live in. Make it Personal Much of the older generation - the Baby Boomers - feel that gifts should be personal to the recipient. However, with the wide range of option when it comes to digital gifting, choosing the right eGift or voucher can be just as personal as a traditional hand-picked gift.
It’s so easy to tailor a digital gift to the requirements of its receiver. By simply buying them a voucher for a brand they like, it removes the hassle and stress of choosing a physical gift and provides the recipient with the control to make their own purchasing choices. It’s win-win.
Gift cards are also great for those who are concerned with losing money or who shop regularly and don’t want the hassle of cash handling. This is why much of the younger generation are receiving more digital gifts – it removes a lot of hassle. The explosion in gift card growth is due to the challenges of traditional gifting methods. These challenges include knowing what a person wants, specific product details, and knowing the shipping address. These problems made gift cards one of the most convenient and easy gifts of the 21st century.
Beneficial for Business
Not only is digital gifting excellent for both the giver and the receiver, it’s also become more beneficial for the companies that offer them. When an eGift is purchased, the full value of the sale goes directly to the retailer. This is regardless of whether the gift card is ever redeemed, meaning that the company won’t lose out financially. There’s also the huge B2B market for eGifts, whether that’s for your customer retention strategies, your customer care and ‘apology’ budget or even for staff morale and motivation.
Moving with the Times
Digital gifting hasn’t always existed in the way that we know it to now. Thanks to evolving technology and consumer trends, there are always new and progressive ways to spend being introduced. The conventional processes of exchanging physical cash for a physical gift card has transformed. And now, virtual cash – such as cryptocurrency – can be exchanged for a virtual gift card. This has already been introduced in Europe and Australia and is already increasing in popularity. Digital gifting will continue to move into the future with continued advancement of modern technology. While it’ll grow and adapt and likely evolve into a new paradigm, digital gifting isn’t going anywhere for the foreseeable future.
How we can help
Using the Tranxactor system retailers can easily integrate digital gifting into their platform. You can use your existing POS solution, allowing barcodes or QR codes to be scanned at the POS with redemption authorised or rejected in real time. The Tranxactor system has a huge range of additional benefits including the ability to allow reload of gift cards, an accurate view of activity and funds movement, alongside extensive reporting including liability, velocity and sales reports. If you’re ready to move your business forward at pace with digital gifting, why not speak to the Tranxactor team today?