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Physical gift cards remain a retail powerhouse. While digital options offer undeniable convenience, there's something about the tangibility of a card that keeps them popular. Let's dive into the data and see why physical gift cards the perfect pick for your next gifting occasion might be. 

85% of consumers enjoy the act of giving a physical gift, with over half wanting the recipient to experience the joy of unwrapping it. There's a sentimental value to holding a card that a digital message can't quite replicate.

Physical gift cards can be loaded and reloaded with funds, functioning like cash equivalents for in-store and online purchases. They offer flexibility and spending power. 

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However, convenience is a major factor too. Here's where the stats get interesting: 
- A Fiserv survey found that 63% prefer digital options for immediate delivery. 
- Over half find them easier to send and purchase compared to physical cards. 

So, is the physical card a relic of the past? Not quite. While digital options offer undeniable ease, physical cards still hold weight. They're perceived as more personal. Recipients view physical gifts as thoughtful and relevant, compared to the perceived impersonality of cash or digital alternatives. 

The market for physical gift cards is thriving! 69% of consumers purchased the same amount or more in gift cards in 2023 compared to 2022, with a significant rise in high-value purchases. Plus, a whopping 79% of people end up spending more than the card's value at the store, making them a potential win-win for both the giver and receiver. 

Different applications for physical gift cards 

Physical gift cards have different application based on different business persona. We will find those oout.  

1. Vertriebspartner 

Physical gift cards can serve as powerful motivators for your sales and distribution partners. By offering gift cards as incentives, you can drive better performance and increase sales. These tangible rewards not only provide immediate gratification but also foster a sense of achievement among partners. 

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Incentive Research Foundation’s study showed that 63% of businesses with channel incentive programs used gift cards as an incentive. The important thing to remember is to choose gift card brands that will be appealing to your participants. 

2. Account-based marketing (ABM) 

Physical gift cards allow you to personalize your marketing efforts in Account-Based Marketing (ABM). By sending tailored gift cards to high-value accounts, you can create a personalized experience that resonates with each recipient, making your marketing campaigns more effective. 

Gift cards can be customized to match the preferences and interests of your target accounts. This level of personalization not only grabs their attention but also demonstrates that you understand their needs and are willing to go the extra mile to engage them. 

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When Clarabridge, a customer experience management company that’s now a part of Qualtrics, sought to increase attendance in the session, its team made sure to offer target accounts a $10 coffee gift card for attending.

The leads that took the offer had a 73% attendance rate, which was a huge increase from their average attendance rate of 40%. 

3. Clients 

Sending physical gift cards to your clients as a token of appreciation for their continued business is a simple yet effective way to retain clients. Acknowledging their loyalty with a thoughtful gift reinforces their decision to stay with your brand. 

Recognizing and celebrating your clients' milestones and achievements with gift cards is a great way to show your support. Whether it's the launch of a new product or a significant business anniversary, acknowledging these moments with a gift card helps to build a deeper and more meaningful relationship. 

4.Employees 

Physical gift cards are a great way to recognize and reward employees for their performance and achievements. Whether it's for meeting sales targets, completing a project, or demonstrating exceptional teamwork, gift cards provide tangible recognition that motivates employees. 

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89% of employers use gift cards to recognize their employees for years of service. 

5. Customer loyalty 

Integrating gift cards into your loyalty rewards programs can enhance their effectiveness. Offering gift cards as rewards for accumulated points or referrals encourages repeat business and fosters brand loyalty. To make your gift cards more accessible and user-friendly, consider using the best QR code generator to create scannable codes that link directly to the gift card balance or redemption pages.

Gift cards can be used to encourage repeat business and strengthen brand loyalty. By rewarding customers with gift cards for their continued patronage, you create a positive feedback loop that keeps them coming back. 

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- 80% of consumers said they have made the decision to shop somewhere based on gift card loyalty incentives at least one time, while 16% said they "always" factor in the incentives.

- 36% of customers prefer gift card and debit card programs as loyalty rewards.

- Consumers are 56% more likely to join customer loyalty programs that offer tiered rewards and exclusive treatment.

- Companies with strong loyalty marketing programs that include gift card rewards grow revenues 2.5 times faster than their competitors and generate 100-400% higher returns to shareholders. 

Benefits of physical gift cards 

The benefits of physical gift cards are as follows: 

  • Tangible recognition: Physical gift cards provide a tangible form of recognition that employees can hold and appreciate. This can enhance the feeling of being valued by the organization. 
  • Personal touch: Giving a physical gift card shows a personal touch, indicating that the employer has considered the preferences and interests of the employee. 
  • Memorable experience: Unlike digital rewards, physical gift cards often come with attractive packaging or personalized messages, creating a memorable experience for the employee. 
  • Boost morale: Receiving a physical gift card can boost morale and motivation, encouraging employees to continue their hard work and feel appreciated. 

How physical gift cards create loyalty 

Physical gift cards can be a highly effective tool for building customer loyalty when used strategically. Here are some key ways they drive loyalty, backed by statistics from reliable sources: 

1. Personalized rewards 

Offering personalized gift card rewards based on customer preferences and behaviors shows you value them as individuals. 80% of consumers are more likely to do business with a company that offers personalized experiences. 

2. Tiered loyalty programs 

Creating tiered loyalty programs with gift cards as rewards incentivizes customers to make repeat purchases to unlock more valuable cards. Consumers are 56% more likely to join loyalty programs with tiered rewards. 

3. Anreize für Empfehlungen 

Using gift cards as referral incentives encourages existing loyal customers to spread the word. Approximately 50% of customers will refer friends if there's a gift card incentive. 

4. Besondere Anlässe 

Timing gift card rewards to special occasions like birthdays or holidays demonstrates you value the customer beyond just transactions. 77% of consumers say loyalty programs make them more likely to stay with a brand. 

5. Discounts and bonuses 

Offering discounts or bonus cards when customers purchase gift cards in bulk can drive immediate sales and show appreciation for their loyalty. 79% of customers would be more likely to join a loyalty program if they could earn points for leaving a review. 

6. Flexibility and convenience 

Physical gift cards provide a tangible, flexible reward customers can use how and when they want. 85% of consumers like the idea of an actual physical card they can hold, wrap, and store. 

Why choose Xoxoday for physical gift cards gifting 

Xoxoday is an excellent platform for leveraging physical gift cards to drive customer loyalty, employee engagement, and client appreciation. By offering a vast catalog of over 300 top brands, Xoxoday enables you to provide recipients with a wide range of desirable gift card options.  

This flexibility ensures you can cater to diverse preferences and create a more personalized experience.The platform's streamlined management features make it easy to efficiently distribute physical gift cards in bulk, track delivery status, and monitor redemption.  

Xoxoday's global reach allows you to send localized gifts without currency conversion hassles, making it ideal for international programs. With robust security measures like SSO and two-factor authentication, you can trust Xoxoday to handle sensitive data compliantly. 

Schedule a demo now! 

Schlussfolgerung 

Physical gift cards still have a significant place in the gifting landscape despite the rise of digital gift cards. Their tangibility and ability to be wrapped and presented as a physical gift make them a more personal and emotional choice for many recipients. Physical gift cards also offer benefits like being easy to purchase in-person and being less likely to be lost or forgotten compared to digital cards. 

However, digital gift cards are becoming increasingly popular due to their convenience, speed of delivery, and ability to be personalized. They align well with modern recipients and evolving technology. 

Ultimately, businesses should offer both physical and digital gift card options to cater to the preferences of different customers. Platforms like Xoxoday make it easy to offer a range of gift card formats with their wide selection of digital and physical gift card options. 

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