Shopify gift cards are digital or physical cards with a set monetary value that customers can purchase and use as payment, helping stores boost sales, cash flow, and customer loyalty.
They are easy to create and customize using Shopify’s built in features or apps like GiftKart, which allows automation, cashback campaigns, delayed redemption, and branded customization.
Gift cards drive multiple business goals including new customer acquisition, retention, win back campaigns, loyalty and referral incentives, milestone celebrations, and even customer recovery through “sorry” campaigns.
They can be promoted through on site placements, social media, email marketing, and contests to maximize visibility and engagement, especially during high sales seasons like BFCM.
Digital gift cards offer greater convenience, personalization, and eco friendliness, while paper cards provide a tangible gifting experience for traditional customers.
Using GiftKart, merchants can leverage gift cards to run loyalty programs, cashback offers, and store credit campaigns transforming them into powerful revenue and retention tools for Shopify stores.
In today's fiercely competitive e-commerce landscape, the key to success lies in your ability to innovate and find new ways to boost sales. Gift cards for Shopify stores are a powerful tool that can unlock a world of repeat purchases, brand visibility, and revenue growth for your online store.
In this comprehensive guide, we'll walk you through everything you need to know about leveraging Shopify Gift card solutions and gift card integration with Shopify to transform your business.
What are Shopify gift cards?
A gift card is a product containing a predetermined monetary amount that customers usually purchase to give as a gift. It can then be used as a form of payment for future transactions. While this feature is available on all Shopify subscription plans, online businesses can add further customization using apps like Giftkart to make their campaigns more powerful.
💡 Can a customer buy a gift card without any other shopping?
Absolutely! Customers can purchase gift cards without buying any other items.
How do e-gift cards work?
When someone purchases a gift card, the customer gets an email or SMS with a digital gift card inside. This card has a special code that they can use during checkout to get the value of the gift card.
The process of gift card Shopify working consists of four steps:
Buying
Receiving
Sending
Using
1. Buying
Buying Shopify gift card involves the following steps:
Customers visiting the retailer or brand's website
Choosing the e-gift card option
Selecting the desired gift card amount
Adding the e-gift card to the cart
Proceeding to checkout
Providing the payment information and completing the purchase
💡Can gift cards be issued with any initial value?
Gift card Shopify has a maximum value of $9,999.99 (or equivalent in your local currency) when issued.
2. Receiving
After the purchase is confirmed, the customer will receive an email or notification confirming their e-gift card order.
This email typically contains important details about the Shopify card, such as its unique code and value.
3. Sending
If the intent is to send the gift card to someone else, customers have the option to send it directly through the brand site or forward the information via email, SMS or other communication channels themselves.
4. Using
The recipient can use the Shopify gift card Shopify by:
Opening the email containing the e-gift card
Finding and noting the unique code provided
Visiting the retailer's website
Selecting products or services they wish to purchase
Entering the e-gift card code during the checkout process
💡Where can customers redeem their gift cards?
Customers can redeem their gift card Shopify on any of the sales channels that use Shopify's checkout:
Businesses should consider using gift card Shopify for a variety of compelling reasons:
Immediate revenue generation: E-commerce gift card strategy allows businesses to generate revenue quickly. When customers purchase these digital cards, the funds are received upfront, even before the card is redeemed. This immediate cash flow can be essential for managing expenses and investments.
Convenience for customers: E-gift cards are incredibly convenient for customers. They can be easily purchased online and delivered electronically via email or text, eliminating the need for physical cards. Customers appreciate the simplicity of digital transactions.
Expanded customer base: By offering e-gift cards, businesses can attract new customers who may not have otherwise engaged with their brand. Gift card recipients are introduced to your products or services, potentially turning them into loyal customers.
Increased sales: Recipients of e-gift cards often spend more than the card's initial value when making purchases. This tendency to overspend can significantly boost overall sales and revenue for your business.
Customer loyalty building: E-gift cards can serve as effective loyalty rewards. Offering them as incentives or bonuses can encourage repeat business and build strong customer relationships, increasing customer retention rates.
Cost savings: E-gift cards eliminate the need for physical card production and shipping, saving businesses money on operational expenses. This cost-saving aspect is particularly valuable for businesses looking to reduce overhead.
Seasonal sales boost: E-gift cards are popular gift choices during holidays and special occasions. By offering them, businesses can take advantage of seasonal sales spikes and capitalize on increased consumer spending.
Customization flexibility: E-gift cards can be easily customized to suit different occasions, preferences, and branding needs. Businesses can add personal messages, unique designs, and various denominations, providing a tailored gift-giving experience.
How to create a gift card on your Shopify store?
With apps like Giftkart, creating a gift card campaign on your Shopify store is easy. Here’s what you need to do:
But if you’d like a step by step, here’s what you need to do to set up a Shopify gift card campaign that helps you boost customer loyalty, increase your average order value and grow your business.
In this case, we’ll show you how you can set up a cashback campaign with gift cards using the Gifkart app:
Step 1: Install the Giftkart app from the Shopify App Store.
Step 2: Select your campaign type from the dashboard.
Step 3: Create rules for your gift cards; when they are sent and how they can be availed.
Step 4: Set up scheduling settings for your Shopify gift card. With GiftKart, you can also set up delayed cashback redemption.
Step 5: Choose the products and collections around which the Shopify gift card campaign is applicable.
Once you’re done with the set up, you can simply go live with the campaign!
How to promote your gift cards?
For maximizing gift card sales, you need to effectively promote your gift cards. Here are some gift card marketing tips to consider :
On website
Place gift cards prominently on your website's homepage and navigation menu. Make sure visitors can easily find them.
Design visually appealing gift cards that resonate with your brand. Consider holiday-themed designs for special occasions.
Provide gift cards in various denominations to cater to different budgets. This inclusivity encourages more customers to buy.
Dedicate a webpage to gift cards. Describe their benefits, customization options for thoughtful touch, and how to purchase them.
Ensure your website and gift card purchasing process are mobile-friendly. Many shoppers use smartphones for online purchases.
On different platforms
Create short videos showcasing the gift card experience. Highlight how easy it is to purchase and use them on social media platforms.
Send targeted email campaigns to your subscribers. Mention the benefits of gift cards and offer exclusive promotions. See example of one of our clients that ran a BFCM campaign using discounted Gift Cards and generated $250K with a single campaign.
Encourage gift card recipients to share their experiences on social media. User-generated content is a powerful promotional tool.
Host contests or giveaways with gift cards as prizes. It's an effective way to engage your audience.
PS. We will be sharing detailed strategies on gift card marketing on our blog soon. Don’t forget to subscribe!
Pro tips to make gift cards a success
Here are some pro tips to make your gift cards a success.
Tailor your marketing efforts to specific occasions, demographics, or customer segments to boost gift card sales.
Invest in appealing gift card Shopify packaging or presentation to make them more gift-worthy.
Encourage recipients to spend more than the gift card's value by cross-promoting related products or services.
Simplify the redemption process by allowing online or in-store use and offering digital or mobile options.
Send reminders to both gift card purchasers and recipients to prevent unused balances from expiring.
Gather customer feedback to continuously improve the gift card Shopify program and enhance customer satisfaction.
When implementing gift card Shopify, carefully consider whether to set expiration dates. Expiration dates can be based on a specific calendar date or a period, such as one year from the date of issuance.
Give customers the ability to add personalized text and video messages for the recipient using apps like Giftkart.
How can you use gift cards to grow your Shopify store?
Gift cards are versatile tools that can be employed in various marketing campaigns to engage and retain customers effectively.
While brands commonly use them for giving their shoppers an easy way to purchase personalized gifts, there are many more ways in which businesses can benefit from them - right from acquisition, winback, retention and more, gift cards can be used to actually grow your online store.
Let’s take a look at this in detail
1. Cashback using GIftCards
Cashbacks have been one of the most successful strategies for eCommerce businesses to get online shoppers to buy more, and sometimes, even come back for more to use what they get! For instance, you can offer cash back gift cards during peak sale seasons like the holidays to encourage buyers to checkout with more items in the cart.
Here’s how you do it:
Set an average order value threshold
Set a cashback gift card value
Create a schedule for the gift card to go live (eg. holiday season, BFCM, etc)
Set up delayed redemption rule using Giftkart
Andre Assous, for instance, smartly promotes their cashback gift card in the cart. With a clear messaging, they convey what the shopper needs to do to get a free gift card of a certain value. This strategy has helped them convert 158 customers and see a 36% increase in AOV.
2. Acquisition campaigns
Gift cards can be used as incentives to attract new customers. By offering a gift card as a reward for making a first purchase or signing up for a service, you can entice potential customers to take the desired action.
How to do it:
Promote the gift card Shopify offers through your marketing channels, emphasizing its value.
Set clear criteria for customers to qualify for the gift card.
Ensure the gift card is easy to redeem and use.
Here’s one of our merchants using GiftCards to promote Gift Cards using email marketing. You can run this as an automated bulk campaign through GiftKart.
3. Win-back campaigns
For customers who haven't engaged with your business for a while, offering a gift card can motivate them to return. This strategy can help rekindle their interest and re-establish a connection.
How to do it:
Identify dormant or inactive customers in your database.
Craft a compelling message that emphasizes the gift card's value and encourages them to come back.
Monitor customer response and track the impact on re-engagement.
See below how one of our Shopify Brands used GiftKart to run a winback campaign and generated $11K through this campaign. Here’s the detailed case study as well.
4. Referral or loyalty incentives
Encourage existing customers to refer friends or family members to your business by offering gift cards as rewards. Similarly, you can use gift cards as loyalty incentives to retain and reward repeat customers.
How to do it:
Create a referral program that clearly outlines the rewards for referrers and referees.
Implement a loyalty program that grants gift cards based on cumulative purchases or other loyalty criteria.
Promote these programs to your customer base and ensure the referral process is straightforward.
5. Customer milestones campaigns
Celebrate important milestones in your customers' journey with your brand, such as birthdays or anniversaries, by sending them gift cards as tokens of appreciation. This can enhance customer loyalty and create a positive brand image.
How to do it:
Collect and store customer data, including birthdays and anniversary dates.
Automate the gift card Shopify distribution process to coincide with these milestones.
Personalize your messages to make customers feel valued and special.
6. Sorry campaigns
When your business makes a mistake or faces a service issue that negatively impacts customers, offering a gift card as an apology can help rebuild trust and demonstrate your commitment to customer satisfaction.
How to do it:
Acknowledge the issue and apologize sincerely
Offer the gift card along with a heartfelt message, explaining how it can be used to make up for the inconvenience
Ensure the gift card is readily accessible and easy to redeem
Another way to drive in more sales even through undecided online shoppers is to make use of gift cards. By giving them the ability to buy gift cards instead of having to decide on products, and at a discount, creates a win-win situation. While you secure a sale, the consumer is happy to have gotten additional value to shop using at an enticing price.
How to do it:
Decide on an overall value of the gift card
Create a discount on the gift card for the same value
Create a marketing campaign focused on promoting ‘get more for less’ through gift cards
Here’s an example of how Raw Juicery makes use of Shopify gift cards with GiftKart for their BFCM sale campaign:
8. Store credits gift card
Another way to use gift cards is to offer store credits. While in some ways this is similar to how the cashback gift cards work, they are based more around store credits instead of dollar value.
For instance, instead of offering customers a gift card of $50 on a purchase of $100 products, you give them 50 store credits instead. This gives you the ability to also set additional parameters around the value of the store credits - example, 10 credits being equal to $1.
Digital vs. Paper gift cards
Digital and paper gift cards are two common forms of gift cards, each with its own set of advantages and disadvantages. Here's a comparison between the two:
Digital gift cards
Convenience: Digital gift cards are incredibly convenient. They can be purchased online, sent via email or text message, and redeemed electronically, often with just a code or a barcode.
Speed: They can be delivered instantly, making them an excellent option for last-minute gifts. You can also schedule their delivery for a specific date and time.
Customization: Digital gift cards can be personalized with a message or a video, adding a personal touch to the gift.
Security: They are typically more secure than paper gift cards because they are tied to a specific account or email address. This reduces the risk of loss or theft.
Eco-friendly: They are considered more environmentally friendly since they eliminate the need for physical materials like plastic cards and packaging.
Easy to carry: Recipients can carry digital gift cards on their smartphones, eliminating the need to keep track of a physical card.
Paper Gift Cards
Tangibility: Some people prefer the tactile experience of receiving a physical gift card. It feels more like a traditional gift.
Gift presentation: Paper gift cards can be placed inside a greeting card or a gift box, enhancing the overall presentation.
No technical requirements: They don't require a smartphone or internet access, making them accessible to people who may not be tech-savvy.
Gift for collectors: Some people collect paper gift cards, viewing them as small keepsakes or mementoes.
No risk of technical glitches: Digital gift cards can sometimes encounter technical issues, which can be frustrating for both the giver and the recipient. Paper gift cards do not have this problem.
Limited customization: While you can personalize the accompanying card or packaging, the gift card itself is typically not customizable.
Digital gift cards are usually more versatile and eco-friendly, while paper gift cards offer a more traditional and tangible gift-giving experience.
Conclusion
In conclusion, Shopify gift cards are a valuable yet underutilized marketing and growth feature for eCommerce businesses.
We're here to help you unlock your full potential with the GiftKart app.
GiftKart is one of the best digital gift card platforms, designed to boost customer acquisition, conversion, and retention. With its powerful features, you can create branded digital gift cards, greeting cards, run bulk gift card campaigns, offer refunds as store credits, implement reward and loyalty campaigns, provide cashback, and much more.
Want to explore using gift cards to increase your Shopify store revenue?
Hurrify customers to buy within a given timeframe with a sales countdown timer & improve conversions
Another popular Shopify checkout app is Checkout Promotions. The app comes with the ability to leverage a collection of highly robust visibility rules that help show customers one-click post purchase upsell promotions after an order payment has been made. Some of its key features include:
Features
AI recommended and manual recommendations for upselling.
Complete branding control.
Checkout Upsell for increasing AOV.
AI recommended and manual recommendations for upselling.
Pricing
Development
Free
Monthly Plan
$99/ month
Plus Plan
$99/ month
Plus Plan
$99/ month
FAQs
1. Are Shopify gift cards available on all Shopify plans?
2. Can customers redeem Shopify gift cards both online and in-store?
3. Do Shopify gift cards expire?
4. How can Shopify businesses use gift cards to increase revenue?
5. What makes digital gift cards better than physical gift cards?
6. What is the best way to promote Shopify gift cards?
Sid B
Sid is the founder of Skai Lama and The Indian Dream Podcast. He is passionate about building SaaS and talks about eCommerce Growth, 0-1 Startups, Building Businesses and Brands, and Shopify.
Boost your e-commerce with GiftKart! Branded gift cards, loyalty campaigns, cashback, and more.
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