The new year is here and it’s still not too late for good resolutions! It’s time to make the right innovative choices and stay ahead of the competition. This is the time of the year when marketers take the time to assess the best options to further build their brand and drive greater customer engagement.
Here’s a report on the top 5 digital gifting trends of 2015. We hope those tips and insights will help you be a part of 2015 trendsetters!
#1 – Millennials already do, and will further embrace digital gift cards
In this era of instant gratification where consumers want everything right here, right now, digital gift cards are the logical evolution for digital native millennials. According to an Incomm survey released last month, 85% of respondents between 18-35 agree that they were likely to purchase at least one digital gift card this holiday season. The main reason for this is that e-gift cards can seamlessly be sent to friends or family- anywhere, anytime. No need to buy it in a grocery store, it’s just a mouse click away. Moreover, they can be personalized – the design, the message can be specifically customized for the beloved friend or family member.
#2 – Smart marketers will focus on building branded gifting moments online
The shift from offline to digital in the gift card market unlocks a whole suite of branding opportunities for marketers. The best brands are already leveraging digital gift cards to cater to the shifting trends, craft authentic personalized rewarding moments online, and engaging their customers to the next level. Instead of simply shipping a physical gift card, they invite their customers to a branded gifting experience online that they’ll never forget. What’s more, customers spread the word to their friends resulting in the campaign easily going viral.
#3 – The rise of digital gift cards will decrease average gift card breakage
One reason why digital gift cards are more popular than physical ones is because they cannot be lost. According to a survey by Bankrate – 40% of 18-29 year-olds admit to losing a physical gift card. Electronic gift cards can be accessed through mobile apps and email applications and as such, they are much harder to lose than traditional plastic gift cards. Therefore, with the growing shift to digital gift cards, marketers should expect the average breakage rate to shrink. This is actually good news for brands. First, customers utilize what they’ve paid for which strengthens their relationship to a brand. Second, a customer redeeming a gift card often purchases significantly more than the gift card value, leading to incremental sales and revenues.
#4 – Loyalty programs will further rely on digital gift cards
Brands have embraced the change from physical to digital to fuel their existing loyalty programs. Instead of buying the traditional physical gifts – or worse, shipping plastic gift cards to end-consumers – they will switch to digital gift cards that consumers can redeem instantly. It’s a win-win as Brands save on shipping costs and eradicate issues related to physical gift cards such as lost physical cards, and consumers won’t have to wait to receive their gifts anymore.
#5 – Marketers will bundle products with digital gift cards and content
For years, brands like Apple have bundled their products with digital content to boost their sales. For instance, they would implement a promotion such as: “Buy a Mac and get a $100 iTunes gift card”. In 2015, more brands will follow this trend – called “bundling” in marketing. Innovative marketers will work on coupling their physical products with digital content to offer diversified, enticing promotions.
What are your thoughts & insights for the digital gifting trends in 2015? I’d love to know your opinion!