The Spirit of Digital Giving with eGift Cards

The Spirit of Digital Giving with eGift Cards

Whether you see gift cards as the lazy last resort of the obligated gift giver or as the best way to let recipients get exactly what they want, they bring in big money for the businesses that offer and accept them.

According to the CEO of gift card marketplace Raise, not only have gift card sales have increased roughly 25 to 30 percent year over year, the average amount of each gift card has also seen a modest bump, from $220 to $250.1 In 2019, the National Restaurant Association conducted a survey that suggested a whopping 47 percent of adults planned to give a restaurant gift card as a gift, and 72 percent of those polled indicate they hope to receive a gift card.2


Table of Contents

  1. eGift Cards Simplify Shopping
  2. Customizing Restaurant eGift Cards
  3. How to Offer eGift Cards at Your Restaurant
  4. Contract it Out
  5. The Power of Social Media
  6. Marketing On-site
  7. B2B eGift Card Marketing

Data from the National Retail Federation shows gift cards were the most requested item on 2019 shoppers' holiday wish lists, narrowly beating out clothing and accessories.3 That's good news for restaurant operators. Out of all restaurant gift card sales throughout 2020, 45 percent were sold during the holiday season.4

eGift Cards Simplify Shopping

Shoppers used to have no choice but to stop by a brick-and-mortar location to pick up a gift card, but gift cards are no exception to the fact that the internet is now the most popular holiday shopping venue. As consumers turn to the net to send gifts faster and farther, gift cards are evolving to keep up.

eGift cards are digital versions of the practically-same-as-cash plastic currency. The giver pays for the card online and it’s delivered to the recipient via e-mail or text message. eGift cards can often be redeemed in person or online and are typically available instantly to the recipient.

Take care when reviewing your eGift card setup and ensure the process is as smooth and simple as possible for the user. Shoppers are busier than ever, so enhancing the ease of buying eGift cards is a great way to increase sales.

Operator Tip

Evaluate the convenience of your eGift card program. A seamless shopping experience can boost conversions.

Customized Restaurant eGift Cards

Despite their lack of physical form, many eGift cards can be made much more personal than their plastic predecessors. Givers often have the choice to include a message or picture, and vendors often provide a number of graphics that can accompany the gift's bar code or serial number.

Gift Card Girlfriend, aka Shelley Hunter of Giftcards.com, ranked 200 vendors by criteria such as how personal gift givers could make their cards with customized designs, messages, photos, and videos.5 A good number of those cards are from national restaurant chains.

Not surprisingly, the top restaurant on Hunter's list is Buffalo Wild Wings, a chain offering more than 40 gift card designs, options to add photos and audio messages, and the ability to use the gift both online and in-store.

Other top chains on Hunter's list include Domino's (the pizza giant that has all but reinvented itself as a tech company in the past decade),6 Carrabba's, and Chipotle – all of which allow purchasers to customize their gift cards with photos and personal messages, deliver them via email, and redeem the card for internet purchases and in person.

Take a cue from these chains if you want to offer eGift cards and give guests plenty of flexibility to customize and use their cards. Some restaurants even offer add-ons such as sending an actual greeting card through the mail with your gift card – a unique idea sure to appeal to today's increasingly experience-driven consumers.

Operator Tip

If you offer eGift cards, including creative personalization options can help you stand out from the crowd.

How to Offer eGift Cards at Your Restaurant

Offering restaurant gift cards online can help level the playing field for independent restaurateurs trying to compete with national chains. It's also a good way to drive awareness, as satisfied customers are likely to pass on gift cards to friends and family members in the area who may not yet know about your restaurant. The following tips can help you implement and promote an eGift card program.


Contract With an eGift Card Fulfillment Company

The quickest way to start selling eGift cards is to partner with a company that specializes in the service. Here's a rundown of some popular eGift card companies and the services they offer:

  • Small business owners everywhere are familiar with the payment processing platform Square. What they may not know is the company also offers flexible gift card services, including a free(ish) eGift card option for digital gifting.7 If you're already a Square customer, this eGift card program may be the quickest way to begin offering the service.
  • National Gift Card offers fulfillment services for all types of gift cards, including digital. They serve both small businesses and large corporations, offering options for B2B and B2C selling.8
  • The Clover® gift card program offers solutions to integrate customizable eGift cards into many existing point-of-sale systems, and the company can seamlessly convert existing gift card programs.9
  • GiftFly is a company that deals in-depth with eGift cards and digital promotions. It provides various services to help you offer digital gift cards as well as coupons, giveaways, and promotional deals, and boasts Facebook and mobile integration.10
  • Among its other digital marketing services, Coverboom fulfills digital gift certificates that can be branded with your company's logo, a number of designs from a graphics library, and a personal message from the giver.11 Additionally, Coverboom allows the buyer to preview exactly what their eGift card will look like.


Leverage the Power of Social Media

Their digital nature means eGift cards are perfect candidates for a social media marketing campaign. Posting that you offer the service may be enough to drive sales among followers looking for unique last-minute gifts.

Another option is offering gift card giveaways in exchange for subscribing to your newsletter or following your social media pages. Many people won't hesitate to click a couple links if they have a chance to win free food. You may also consider investing in paid social media advertising to help broaden your reach.


Offer In-store Promotions

There's no better captive audience than a room full of people relaxing and enjoying a meal. Get the word out that you offer eGift cards via in-store materials like menu boards and table tents. Train your wait staff to notify guests of any promotions and ask if they'd like to add a gift card to their transaction before they receive their bill.

Consider creating promotions that involve giving away gift cards with modest $5 or $10 values. Those denominations make great stocking stuffers and can inspire guests to spend more on gifts for others on their shopping lists.

B2B Gift Card Marketing

Don't overlook bulk gift card transactions in your marketing. There are many reasons for individuals and businesses to purchase bulk gift cards, such as employee appreciation events, holidays, bonuses, and even as tips.

Creating a scaled incentive program for your gift cards can attract the attention of those shopping for an entire family, church, sports team, or company. Bulk gift card purchases may net a slightly lower profit margin when you offer an incentive program, but such transactions can reach dozens or even hundreds of new customers while helping build relationships with other local organizations.

References

  1. Gift Card Sales Grow 114% During Holidays for Retailers. Digital Commerce 360. Accessed May 2022.
  2. Hungry for Gift Giving Ideas: Most People Have Restaurant Gift Cards on Their Wish List. National Restaurant Association. Accessed May 2022.
  3. Holiday shoppers plan to spend 4 percent more this year. National Retail Federation. Accessed May 2022.
  4. Restaurant Gift Card Sales Report: 2021. Paytronix. Accessed May 2022.
  5. The Best eGift Cards from Top Stores and Restaurants in 2021. Giftcards.com. Accessed May 2022.
  6. Retail Innovation at Domino’s Starts with Technology, Not Toppings. Salesforce 360 Blog. Accessed May 2022.
  7. Online Restaurant Gift Cards and Dining Gift Cards. Square. Accessed May 2022.
  8. National Gift Card. NGC. Accessed May 2022.
  9. Clover. Clover. Accessed May 2022.
  10. GiftFly eGift Card Features. GiftFly. Accessed May 2022.
  11. Coverboom. Coverboom. Accessed May 2022.