Gift Vouchers: Omni-Channel Challenges & Opportunities

Gift vouchers can be among the important levers for retail expansion. But for many retailers a disconnected experience is leading in large opportunities being overlooked.

Gift vouchers are a wonderful way to drive sales from new and existing clients across both online and bricks-and-mortar shops. This retail practice is especially attractive, as it generally drives greater earnings than the minimal value of the coupon:

The typical gift voucher user will spend an extra $38 in addition to the voucher worth . What is more, 72 percent of individuals who visit a store to buy a gift voucher for someone else wind up spending money on themselves.



Leveraged with a well planned retail strategy, this extremely versatile instrument can be used to unlock a wide range of development opportunities:

  • A suitable gifting merchandise, earnings stream & means to present new clients -- when a client can't find a product for a gift, a coupon is a handy alternative for them and their friends/ family members. Not only do you secure the earnings in the voucher buy but you also introduce a new customer to your brand which you are able to nurture to a long-term relationship.
  • Promotional incentives -- for example a targeted seasonal email campaign whereby a buy (possibly over a certain value) entitles the customer to a free gift voucher
  • Named sales catch -- supplying a gift voucher as a reward for a client sharing their details with you for future personalisation, marketing and relationship development
  • Loyalty rewards -- reach a points threshold / grade and get a gift voucher or use your loyalty points / membership grade to buy a gift voucher
  • Sustaining seasonal / promotional period sales-- frequently the spikes in retail come following large seasonal sales promotions, nevertheless, gift vouchers can bring customers through the doors as they invest their coupon after the holiday rush.
  • Attract millennials -- study shows 25-34 year olds are fuelling the increase in buying retailer-specific gift cards and vouchers. 3 of every 5 of the young adults surveyed reported purchasing at least one in the last year. 58 percent of customers aged 18 to 35 said they would spend more on gift cards this year than last year.
  • Managing returns, rebates and rewards-- If a client wishes to return a product to your shop but does not have a reception, offering a gift card is a terrific way to keep their dollars in your enterprise. This may also be an option if a client wishes to return a product after your routine grace period. By providing the customer with a choice, you are more likely to keep them happy and coming back to pay the amount after. 81% of clients are interested in getting a gift card or coupon when returning goods as a way of store credit.

A disconnected experience = missed chances

Whilst the chances of gift vouchers are wide-ranging and high-impact, many retailers are not realising their full potential. They're introducing an off-putting, disconnected omni-channel experience whereby vouchers are only able to be redeemed in-store OR online -- not both. Some retailers are even more restrictive by simply permitting the present voucher to be redeemed at the store it was originally bought in. Offering gift vouchers that can't be bought in 1 channel/store and redeemed in a different significantly impacts the customer experience. This induces voucher purchases and redemption rates to plummet and all the opportunities outlined above become unrealised. As customer expectations grow (especially the all-important millenials), the effects of offering a disconnected experience is just going to get worse. This is one of the most frequent omni-channel challenges Australian and New Zealand retailers will need to overcome so as to distinguish in an intensively competitive arena.

Finding the experience right -- ConnectPOS & Shopify Plus

Retailers will need to adopt a really omni-channel based approach that unifies customer profiles and touch points, and provides customers with the chance to be rewarded and recognised across each and every station. These connected experiences keep clients engaged and happy, which not only can help encourage repeat buying but also turns these customers into brand advocates. By adopting an integrated in-store and eCommerce software system like the ConnectPOS and Shopify Plus integration, retailers can offer a really omni-channel voucher experience with buy and redemption being possible across all stores and online.

Sources

https://www.connectpos.com/shopify-pos/

https://www.connectpos.com/bigcommerce-pos/

https://www.connectpos.com/ebook/

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