Electronic gift cards can allow retailers to sell more gift cards than plastic alone in the run-up to holidays and other special events, according to a white paper released by Giftango Corp., a virtual card provider based in Portland, Ore. The company charted sales from its customers to show that eGift Cards spoke close to holidays.
When the online sales of plastic gift cards are compared to those of eGift Cards, sales are about even until the days leading up to an important gifting day. A week before the holiday, plastic gift card sales taper off significantly while eGift Card sales dramatically rise.
The study goes to show how digital gift cards can fit into an issuer’s overall strategy. Customers will always like to have options when it comes to giving gifts, so it is too soon to predict the demise of plastic. However, revenue opportunities exist for those companies who understand how use a variety of form factors and channels to fill customer needs.
Click here to download the whitepaper.
