At GiftNow, our merchant partners often ask us what specific things they can do better when it comes to capitalizing on the gifting economy. There are a variety of areas merchants can focus on to help make it easier for gift givers to shop for items, remove friction in the purchase process, improve cart conversions and help make themselves a destination for gifters. To aid retailers and restaurants, we developed the Retailer’s Guide to Gifting Excellence.
Why should “gifting excellence” be important for retailers?
According to the Coresight Research report Unboxing the Gifting Market amid Experience-Driven Retail, the U.S. gifting market (excluding corporate gifts) was $404 billion in 2019 and will reach $510 billion by the end of 2024, at a CAGR of 4.8%. Often retailers may not realize this market opportunity. And, retailers may also not realize gift giving is not a strictly seasonal activity that is limited to holidays. Certainly, Valentine’s Day, Mother’s Day and the winter holidays represent spikes in gift giving but every day there are an average of 814,000 birthdays celebrated across the U.S. and then there are anniversaries and “just because” gifts as well.
Are Retailers Thinking About Gift Shoppers?
Many retailer’s websites are strictly focused on solving the needs of people shopping for themselves. Sure, it’s helpful for a retailer to ask me if I want to re-purchase an item or suggest something that complements something I previously bought for myself – when I’m shopping for myself. But, it’s an entirely different experience when I’m trying to buy a gift for someone else. I may not know my friend or relative’s size or color preference or their shipping address. I may feel it’s risky for me to purchase an item that they may not like and then have to deal with exchanging it. If I’m a hesitant or frustrated gift shopper, I may simply abandon the process, leaving a sales opportunity on the table.
So what can retailers do to improve their gifting capabilities?
At GiftNow, our merchant partners often ask us what specific things they can do better when it comes to capitalizing on the gifting economy. There are a variety of areas merchants can focus on to help make it easier for gift givers to shop for items, remove friction in the purchase process, improve cart conversions and help make themselves a destination for gifters.
The Retailer’s Guide to Gifting Excellence
To aid in this process and build on the work of the e-tailing group, we just published The Retailer’s Guide to Gifting Excellence. This guide provides a framework to help retailers focus their pursuit of gifting excellence. It’s based on GiftNow’s years of experience building the tools and solutions retailers need to take advantage of the vast and growing gifting economy and to better serve their customers while helping to drive better business outcomes. At GiftNow, we’ve seen firsthand what works and what doesn’t when it comes to gifting strategies, and we’ve compiled our insights into The Retailer’s Guide, which can serve as both a self-assessment and a forward-looking strategy guide.
The Retailer’s Guide addresses seven areas of focus:
- Is your site tailored for gift shoppers?
- Is your e-commerce experience designed with gift recipients in mind?
- Do you offer corporate and bulk gifting capabilities?
- Do you utilize technology that provides a holistic approach to gifting?
- Is your gift card solution built around innovation?
- Are your gifting capabilities easy to find on your website?
- Are you factoring in gifters’ desires for corporate responsibility and values?
The guide provides a checklist and examples for each of these seven areas of gifting excellence. We’ve also developed a handy Quick Reference as well.
To cite one example, is your gift card solution built around innovation, we suggest retailers consider factors such as offering the ability for a gift giver to include a personalized message, offer both physical and digital delivery (and in a timely manner), variable card values and support for creative BOGO/GOGO promotional capabilities.
I invite you to download your copy of The Retailer’s Guide to Gifting Excellence to see what you should do to optimize your gifting e-commerce in preparation for the 2021 holiday season. We’d be happy to discuss any questions you may have and work with you to help ensure that 2021 is your best gifting experience ever.
AUTHOR: Kevin Payne is the Vice President of Corporate Marketing for GiftNow – Email him at firstname.lastname@example.org.
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