Digital gift cards aren’t an invention of recent years. For quite some time now, businesses that sell digitally have offered virtual vouchers with a balance to use in their digital stores. What is more recent is the adoption of these gift cards, sent and used without anything other than a computer or a cell phone, as a tool for motivation and social benefit in companies.
For example, of the total sales of gift cards for companies in the UK market, 35% are already done digitally. This modality wins points for its lack of logistics and for being the alternative chosen by companies with a more ecological commitment, in search of immediacy, information on the cards sent, as well as personalization of the communication to the final beneficiary. .
In Spain, Click & Gift has been offering its multi-brand solution for more than 5 years to companies wishing to motivate their employees or use them in incentive programs or corporate gifts (Christmas, birthdays, etc.). The novelty they present is the fact of integrating, in the same digital medium, more than a hundred well-known brands such as Amazon, El Corte Inglés, FNAC, Mango, MediaMarkt, Cepsa, Ikea, The Phone House, or still Casa del Libro.
Generation Y, drivers of change
According to a study by Pew Research, by 2025 in Spain, 75% of the workforce employed will be millennials or younger. This generation, now aged 30 to 35, will be (it is already) a challenge for human resources departments.
Motivating a generation accustomed to a lifestyle more concerned with pleasure and fulfillment than a fixed salary and a job for life requires companies to offer them different remuneration and motivation policies. Training, flexible hours or teleworking are increasingly frequent demands on the workforce of companies. And the change will be greater when this generation begins to take on leadership roles.
Digital gift cards, an increasingly popular alternative
Until now, physical gift cards or vouchers have played an important role in incentive campaigns or employee giveaways. But that trend is changing, with the addition of the millennial generation to the workforce.
A study by the Blackhawk Network company showed that 39% of millennials surveyed said they buy gift cards at least once every three months, compared to 26% or 14% of older generations (genX and baby boomers).
Globally, according to the study by consulting firm Credence Research, the growth of the digital gift card market between 2017 and 2026 is estimated at over 10% per year. This means the passage from a sales volume of 350,000 million dollars to more than 750,000 million by the end of 2026. This growth is mainly supported by new digital technologies, via the Internet and mobile phones: dematerialized cards are already a reality, both in the Spanish market and in other more advanced markets such as English or American.
Buying and paying without traveling and without using plastic cards is more and more common and the beneficiary is no longer afraid to use this technology which makes their life easier. It’s no wonder that the success of digital gift cards is part of this evolution.
In Spain, more than 200 brands already offer a digital version of their gift card. This fact, instead of cannibalizing the sales of the physical card, made it possible to reach a new segment, younger and more connected, promoting the development of the sector.
On the business side, the benefits are vast. According to a study published by research firm First Data – Fiserv, 82% of small and medium-sized businesses that use digital gift certificates have increased their sales in the past year, due to new customer acquisition.