The Growing Trend of Gift Cards Online: Convenience and Versatility

Online gift cards have emerged as a convenient and versatile solution for gifting. With the surge in e-commerce and the increasing preference for digital transactions, online gift cards have become an integral part of modern consumer behavior.   

The market for online gift cards has seen significant growth over the past decade. According to a report by Allied Market Research, the global gift cards market size was valued at $619.25 billion in 2019 and is projected to reach $1,922.87 billion by 2027, growing at a CAGR of 15.4% from 2020 to 2027. This surge is driven by the increasing adoption of digital payment solutions and the rising demand for personalized gifting options.  

A survey conducted by First Data revealed that 93% of U.S. consumers have either given or received a gift card, and 72% of them prefer digital gift cards over physical ones. Moreover, online gift cards are not just a consumer trend; businesses are increasingly using them as promotional tools, loyalty rewards, and incentives, further fueling their popularity.  

What are online gift cards or e-gift cards?  

Online gift cards, often referred to as eGift cards, are virtual equivalents of traditional gift cards, designed for seamless digital transactions. They function much like their physical counterparts but with added convenience and flexibility.   

These digital tokens of generosity can be purchased and sent online via email or messaging platforms, instantly reaching recipients anywhere in the world. Whether celebrating birthdays, holidays, or special occasions, eGift cards offer a wide range of customization options, allowing senders to personalize messages and choose from various designs to suit the occasion and the recipient's tastes.  

What are the multiple uses of gift cards online?  

Gift cards are versatile tools that can serve various purposes in both personal and professional contexts. Their adaptability makes them ideal for strengthening relationships, enhancing marketing strategies, expressing appreciation, motivating participation, and rewarding loyalty.  

Here are some practical ways gift cards can be utilized, along with relevant examples: 

1. Channel partners  

• Strengthening relationships through thoughtful incentives: Gift cards can be powerful incentives for channel partners, helping to strengthen business relationships and encourage better performance. By offering gift cards as rewards for meeting sales targets or other performance metrics, companies can show appreciation for their partners' efforts. 
• Examples of effective use in partner programs: A software company might offer Amazon or Visa gift cards to its reseller partners for every new client signed up or for reaching quarterly sales goals. This not only boosts motivation but also fosters a sense of partnership and mutual success.   

2. Customer loyalty programs  

• Rewarding repeat customers Gift cards are effective rewards in customer loyalty programs, encouraging repeat business and enhancing customer retention. They can be offered after a certain number of purchases or as part of a points-based system.  
• Encouraging future purchases and referrals: A beauty brand might offer gift cards to customers who refer friends or make frequent purchases. This strategy not only rewards loyal customers but also incentivizes new customer acquisition, driving overall growth.  

3. Account-Based Marketing (ABM)  

• Personalized gifting to key accounts: In ABM, personalized gifting can significantly enhance engagement with key accounts. Gift cards tailored to the interests of decision-makers can create a positive impression and increase the likelihood of a successful business relationship.  
• Enhancing engagement and brand recall: A marketing firm could send a personalized Starbucks gift card to a potential client's office, acknowledging their love for coffee. This thoughtful gesture not only initiates a conversation but also leaves a lasting impression, making the firm more memorable.   

4. Employees  

• Recognizing achievements and milestones: Gift cards can be used to recognize employees' achievements and milestones, such as work anniversaries, project completions, or exceptional performance. This form of recognition boosts morale and reinforces positive behavior.  
• Boosting morale and team spirit: A tech company could give gift cards to a popular local café to employees as a reward for completing a challenging project. This not only rewards hard work but also fosters a sense of community and team spirit within the organization.   

5. Clients  

• Expressing appreciation and fostering loyalty: Gift cards are excellent tools for expressing appreciation to clients, showing that their business is valued. Tailored gift cards can enhance client relationships and foster long-term loyalty.  
• Tailoring gifts to client preferences A law firm might send gift cards to a high-end restaurant or a popular local service provider to their long-term clients during the holiday season. This personal touch shows that the firm values their clients and pays attention to their preferences.   

6. Survey incentives  

• Motivating participation and increasing response rates: Offering gift cards as incentives for completing surveys can significantly increase participation rates. This strategy is particularly effective for market research, customer satisfaction surveys, and feedback collection.  
• Ensuring a positive feedback loop: An online retailer might offer a $10 gift card for completing a customer satisfaction survey. This not only encourages participation but also demonstrates that the company values customer feedback, promoting a positive cycle of continuous improvement.   

How online gift cards became the perfect present  

Here are reasons of how online gift cards became the perfect present:

1. Versatility and choice 

Online gift cards offer recipients the freedom to choose exactly what they want, whether it's a favorite book, meal delivery, or clothing, catering to diverse tastes and needs. 

2. Personalization and customization 

Digital gift cards can be personalized with special messages and customized designs, enhancing the gifting experience with thoughtful touches. 

3. Environmental benefits 

Digital gift cards reduce environmental impact by eliminating plastic packaging and transportation, aligning with sustainable lifestyles. 

4. Convenience and instant delivery 

They provide instant delivery via email or text, making them a hassle-free solution for last-minute gifts, benefiting both givers and recipients. 

5. Cost management and budget control 

Givers can control spending precisely, ensuring they stay within budget without unexpected costs, ideal for various occasions and corporate rewards. 

6. Global reach and accessibility 

Online gift cards transcend geographical barriers, easily accessible to recipients worldwide, making them a versatile option for international gifting. 

7. Enhanced gifting experience through technology 

Integration of technology enhances gifting with features like scheduled delivery and interactive experiences, making the process innovative and memorable.  

Top 12 gift cards online perfect for any occasion  

Gift cards are versatile presents suitable for any celebration or event. Here are the top 12 online gift cards that cater to various interests and preferences, each with examples to guide your choices.  

1. Fashion & lifestyle gift cards  

Fashion and lifestyle gift cards allow recipients to indulge in their favorite clothing brands, accessories, or beauty products. These gift cards are ideal for fashion enthusiasts who enjoy shopping for the latest trends or upgrading their wardrobe. Examples include:  

• Amazon Fashion Gift Card 
• Sephora Gift Card 
• Nike Gift Card 

2. Restaurant gift cards  

Restaurant gift cards are a delightful way to treat someone to a meal at their favorite dining spot. They are perfect for food lovers who enjoy trying new cuisines or dining at their go-to restaurants. Examples include:  

• DoorDash Gift Card 
• Olive Garden Gift Card 
• Chili's Gift Card 

3. Travel gift cards  

Travel gift cards provide the freedom to book flights, accommodations, and experiences, making them perfect for wanderlust-filled adventurers. Examples include:  

• Airbnb Gift Card 
• Southwest Airlines Gift Card  
• Hotels.com Gift Card 

4. Electronics gift cards  

Electronics gift cards are perfect for tech enthusiasts who love exploring the latest gadgets and technology. Examples include:  

• Best Buy Gift Card  
• Apple Store Gift Card  
• Newegg Gift Card  

5. Experience gift cards  

Experience gift cards provide unique and memorable activities, perfect for those who value experiences over material goods. Examples include:  

• Tinggly Gift Card  
• Cloud 9 Living Gift Card 
• Groupon Gift Card  

6. Entertainment gift cards  

Entertainment gift cards are perfect for those who enjoy movies, music, and other forms of entertainment. Examples include:  

• Fandango Gift Card  
• Spotify Gift Card  
• Netflix Gift Card 

7. Retail gift cards  

Retail gift cards offer the flexibility to shop for a variety of products at popular stores. Examples include:  

• Walmart Gift Card  
• Target Gift Card  
• Macy's Gift Card  

8. Spa and wellness gift cards  

Spa and wellness gift cards provide relaxation and rejuvenation experiences, making them perfect for anyone in need of a little self-care. Examples include:  

• SpaFinder Gift Card  
• Massage Envy Gift Card  
• Ulta Beauty Gift Card  

9. Gaming gift cards  

Gaming gift cards are ideal for gamers who love exploring new games, in-game content, and subscriptions. Examples include:  

• Steam Gift Card  
• Xbox Gift Card 
• PlayStation Store Gift Card 

10. Sports and outdoor gift cards  

Sports and outdoor gift cards are perfect for active individuals who enjoy outdoor activities and sports. Examples include:  

• REI Gift Card.  
• Cabela's Gift Card 
• Dick's Sporting Goods Gift Card  

11. Subscription gift cards  

Subscription gift cards provide ongoing access to services and products, making them perfect for those who appreciate convenience and variety. Examples include:  

• Amazon Prime Gift Card  
• Hulu Gift Card 
• Birchbox Gift Card  

12. Charity gift cards  

Charity gift cards allow recipients to donate to their favorite causes, making them perfect for those who prefer to give back. Examples include:  

• CharityChoice Gift Card  
• GlobalGiving Gift Card  
• DonorsChoose Gift Card  

5 Best practices for using gift cards as rewards and incentives  

Gift cards are an effective tool for motivating employees, rewarding customers, and incentivizing partners. To maximize their impact, it's important to follow best practices that ensure the gift cards are well-received and meaningful. Here are five best practices for using gift cards as rewards and incentives, supported by real-life case studies and statistics.  

1. Targeted and personalized selection  

• Matching the gift card to the recipient's interests: Ensuring that the gift card aligns with the recipient's interests can significantly enhance its value and effectiveness. Personalized selections demonstrate thoughtfulness and a deeper understanding of what motivates the recipient.  
• Customizing messages for a personal touch Adding a customized message or note with the gift card can make the recipient feel valued and appreciated. A personal touch goes a long way in making the reward more meaningful.  

2. Timely and relevant delivery  

• Sending gift cards promptly after achievements or milestones: Delivering gift cards promptly after an achievement or milestone reinforces the positive behavior and enhances the impact of the reward.  
• Aligning with special occasions or seasonal events Aligning gift card deliveries with special occasions or seasonal events can increase their relevance and excitement.  

3. Clear and transparent policies  

• Communicating expiration dates and terms clearly: Ensuring that recipients are aware of expiration dates and terms of use helps avoid confusion and dissatisfaction.  
• Providing easy access to balance information: Allowing recipients to easily check their gift card balance online or through a mobile app enhances the user experience and encourages usage.  

4. Integration with digital platforms  

• Offering seamless redemption via mobile apps or online portals: Ensuring that gift cards can be easily redeemed through mobile apps or online portals provides convenience and enhances the recipient's experience.  
• Facilitating instant gratification for recipients: Providing instant digital delivery of gift cards satisfies the modern consumer's preference for immediate rewards.  

5. Feedback and improvement  

• Gathering insights on recipient preferences and satisfaction: Regularly collecting feedback from recipients helps to understand their preferences and improve future gifting strategies.  
• Iterating on gifting strategies based on feedback: Using feedback to refine and enhance gift card programs ensures they remain effective and appreciated.  

Case studies  

1. How Freshworks Use Xoxoday to Automate & Distribute Online Gift Cards 

Challenges  

The Freshworks Field Marketing team in the Middle East & APAC regions faced significant hurdles:  

• Gifting event participants: Sending physical gifts during the pandemic was impractical across different geographies.  
• Incentivizing ABM & referral campaigns: Physical gifts for digital engagement were not feasible.  
• Local vendor management: Managing multiple local vendors was time-consuming and costly.  
• Currency conversion difficulties: Rewarding participants in different currencies was challenging.  
• Lack of personalization: Customizing and sending bulk emails with branding was labor-intensive.  

Solution  

Freshworks implemented Xoxoday's rewards platform to address these issues, utilizing Xoxo Reward Codes, Xoxo Reward Links, Zapier integration, and a global rewards catalog with 21,000+ options in 75+ countries. This enabled Freshworks to:  

• Automate and send localized rewards in referral campaigns.  
• Drive engagement in ABM campaigns with personalized virtual meetings.  
• Increase event participation by sending digital gifts without managing multiple vendors.  
• Solve currency conversion problems with localized gift options.  
• Configure and send bundles of gift options to targeted locations easily.  

Xoxoday's features, including the gift engine, Zapier integration, and custom landing pages, helped Freshworks run effective marketing campaigns and capture leads efficiently.  

Results  

• Freshworks sent over $5,000 worth of brand vouchers through Xoxoday.  
• Zapier integration streamlined lead capturing and currency conversion.  
• Customized landing pages with CTAs enabled instant redemption of localized brand vouchers.  

Xoxoday’s platform met Freshworks' needs perfectly, enabling seamless customer rewards through custom workflows.  

2. How Brian Ottum Improved Survey Response Rates by 5-10 minutes per respondent with Online Gift Cards Platform, Xoxoday, and SurveyMonkey integration 

Challenges  

Brian Ottum, an expert in customer insights and analytics, faced several challenges with manual survey rewards:  

• Manual process: Procured, packed, and shipped physical rewards manually.  
• Vendor negotiations: Time-consuming negotiations with multiple vendors.  
• Upfront payments: Required to purchase reward inventory upfront.  
• Integration issues: Limited survey tool integration and lack of automation.  
• Poor user experience: Manual fulfillment led to a poor redemption experience.  

Solution  

Brian transitioned to an automated rewards platform using Xoxoday and SurveyMonkey integration to conduct a survey with 200 North American professionals. The new approach offered instant $20 Amazon gift cards for completing the survey.  

• Seamless Integration: Xoxoday's native integration with SurveyMonkey automated the rewards process.  
• Flexibility: Choose Amazon gift cards from Xoxoday's global catalog, providing respondents with flexible and meaningful rewards.  
• Instant Delivery: Automated instant delivery of gift cards upon survey submission, enhancing respondent satisfaction.  
• Time Management: Saved 5-10 minutes per respondent by automating the rewards fulfillment process.  
• Cost Efficiency: Lowered campaign costs by $1,000 with Xoxoday's value-based pricing.  

3. Growmark Improved Employee Engagement with Xoxoday’s Global Gift Card Catalog  

Challenges 

Growmark faced several challenges with its employee rewards program managed by a third-party merchant: 

• Limited choices: Employees had restricted options for gift card redemption. 
• Lack of analytical tools: No tools to measure program success effectively. 
• Administrative burdens: Monthly tax charges on awards added to the administrative workload. 
• System integration issues: Poor communication between HRMS and the reward platform. 
• Complex redemption process: This is a cumbersome process for employees to redeem rewards. 
• Lack of personalization: The program lacked personalization, affecting employee engagement. 

Solution 

Growmark integrated with Xoxoday to streamline their employee rewards process within SAP SuccessFactors, achieving: 

• Enhanced choice: Expanded options from Xoxoday’s global catalog, improving employee engagement. 
• Customization: Tailored platform to align with company branding and employee preferences. 
• Comprehensive reporting: Xoxoday’s dashboard provided detailed ROI insights and reporting capabilities. 
• Improved employee experience: Employees could accumulate and redeem points seamlessly within SAP SuccessFactors, enhancing user experience. 

Results 

The integration with Xoxoday empowered Growmark to offer a more engaging and personalized employee rewards experience. The platform's flexibility and analytics capabilities enabled better monitoring and management of the rewards program, ultimately boosting employee satisfaction and program effectiveness. 

Best practices as learned from Freshworks, Growmark and Ottum 

Here are key learning from Freshworks, Growmark and Ottum:

• The solution has to be adaptable during global challenges: Freshworks successfully navigated the challenges of global pandemic restrictions by shifting from physical to digital rewards, addressing logistical issues and maintaining engagement across diverse geographical regions. 
• Maintain efficency through automation: By implementing Xoxoday's rewards platform, Freshworks automated the distribution of online gift cards, significantly reducing the time and effort previously required for manual processes such as vendor management and currency conversions. 
• Personalization Enhances Engagement: The ability to personalize rewards and communications through Xoxoday allowed Freshworks to tailor incentives to individual preferences, thereby increasing engagement in ABM campaigns and virtual meetings. 
• Deliver Global Reach and Localized Solutions: Leveraging Xoxoday's global rewards catalog and localized gift options, Freshworks overcame currency conversion difficulties and managed to send tailored rewards to participants in different countries, enhancing their international operations. 
• Find a Cost-Effective Solution: Leveraging Xoxoday's value-based pricing model, Brian Ottum lowered campaign costs by $1,000. This cost efficiency is crucial for optimizing survey budgets while maintaining high-quality respondent incentives. 

Conclusion 

The growing trend of gift cards online highlights their unparalleled convenience and versatility, making them an ideal gift choice in today's fast-paced, digital world. Their ability to cater to diverse preferences, offer instant delivery, and provide personalized experiences sets them apart from traditional gifting options.  

With robust security features, eco-friendly benefits, and seamless integration with loyalty programs, online gift cards deliver substantial value to both givers and recipients. As technology continues to evolve, the popularity of online gift cards is likely to soar, solidifying their position as the perfect present for any occasion.  

FAQs 

What are the 10 best online gift cards? 

The best 10 online gift cards are: 

• Amazon Gift Card 
• iTunes Gift Card 
• Visa or Mastercard Virtual Gift Card 
• Starbucks Gift Card 
• Uber Eats Gift Card 
• Target Gift Card 
• Netflix Gift Card 
• Sephora Gift Card 
• Home Depot Gift Card 
• Airbnb Gift Card  

Where to buy gift cards online? 

You can browse through Xoxoday website, then buy and send rewards instantly via SMS, or email seemlessly. 

How to convert xoxo voucher to cash? 

We regret to inform you that the reward code cannot be exchanged for cash. If you face a code error, kindly share with us the screenshot of the code and the error at cs@xoxoday.com and we will get this issue resolved in the next 24 hours.