How Retailers Can Stop Leaving Billions on the Table
Published on 23 Dec 2015
‘Tis the season to be jolly! With the holidays in full swing, it’s a sure bet you’ve already decked the halls and rang some bells with your closest family and friends. But if you’re on last-minute gift duty, gift cards will likely be at the top of your list.
In fact, more than one in four digital or online gift cards sold in the month of December are sold between Dec. 21 and Dec. 24. Whether plastic or digital, gift cards are an easy-to-buy, easy-to-spend present, and this year will make them the #1 gift nine years and running.
But gift cards could be better for both consumers and retailers.
Digital gift cards delivered via email are a step up from traditional plastic, as they avoid the cost of postage, arrive quickly and are replaceable if lost in the recesses of your inbox. But mobile wallet gift cards go many steps further, with native mobile experiences that can encourage and extend interaction with cardholders.
Not only are mobile wallet gift cards 10-25X less expensive than their plastic brethren, they allow retailers to take advantage of sophisticated capabilities through Apple Wallet and Android Pay (which are included on most mobile devices). From location-based reminders and remaining balance notifications, to the ability to update card content with new offers, retailers can improve redemption and go beyond a transactional, one-and-done relationship with cardholders to something more.
Rest assured, the immediate opportunity for retailers is massive. Leveraging the latest data, we have conservatively calculated that retailers can recoup an additional $2.29B in plastic expense and unused card balances by transitioning to mobile wallet gift cards. Not only that, but the opportunity to sustain personalized engagement over time is a very significant, net-new opportunity.
Since you’re probably packing the sleigh to head over to Grandma’s house, we’ll let the pictures do the talking. Happy holidays!