As we head into the 2024 holiday season, gift cards remain a significant part of retailers’ strategies. The industry has seen incredible growth over the years, and the trend is far from slowing down. With the global gift card market projected to reach over $1.4 trillion by 2027, retailers are paying closer attention to new trends that can enhance customer experience and drive sales during the busiest shopping season of the year.
Here are some key gift card trends shaping the holiday season for 2024:
1. The Rise of Digital Gift Cards
Digital gift cards have become increasingly popular, especially in the post-pandemic era where e-commerce has surged. According to a 2023 study, digital gift card sales have grown by more than 28% year over year, with no signs of slowing down. Consumers love the convenience of storing gift cards on their mobile phones, redeeming them online, and even using them at brick-and-mortar stores via contactless payment methods. This trend has led retailers to heavily invest in digital card solutions, integrating them into loyalty apps and mobile wallets.
The Engage2Reward™ Gift Card Ordering Platform, for example, makes it easy for companies to order digital gift cards in bulk for employee rewards or customer incentives. With its user-friendly interface, businesses can select from a wide range of gift cards and instantly deliver them digitally—perfect for last-minute holiday shoppers or corporate incentives during the holiday rush.
2. Integration with Loyalty Programs
Another growing trend is the integration of gift cards into loyalty programs. Retailers are increasingly using gift cards to reward loyal customers, offering them as part of special promotions. For instance, customers might receive a gift card for spending a certain amount, or as a bonus for frequent purchases. This strategy not only drives immediate sales but also builds long-term customer loyalty.
This season, we’re seeing more retailers move away from blanket discounts in favor of these types of rewards. Offering gift cards instead of price reductions encourages repeat business while maintaining brand value.
3. Sustainability Takes the Stage
Sustainability continues to be a major consideration for consumers. With environmental concerns growing, retailers are beginning to replace traditional plastic gift cards with eco-friendly options like paper or wooden gift cards. These alternatives not only appeal to environmentally conscious consumers but also align with corporate social responsibility goals. Some companies are even using fully digital solutions to eliminate physical cards altogether, further reducing waste.
Retailers embracing gift card sustainability will likely gain favor this holiday season, particularly with Gen Z and millennial shoppers, who are more likely to prioritize brands that take active steps toward reducing their environmental impact.
4. Small Businesses Join the Trend
Historically, gift cards were seen as the domain of large retailers, but small and mid-sized businesses (SMBs) have increasingly embraced them. Many SMBs are now offering digital gift cards as a way to tap into holiday sales and increase cash flow.
With platforms like Engage2Reward, small businesses can also access bulk ordering options and offer their customers and employees a wide variety of gift card choices as loyalty rewards or engagement incentives.
The simplicity and scalability of platforms like Engage2Reward allow businesses of all sizes to offer customized gift card solutions to employees and customers alike. Whether it's an employee reward or a customer appreciation tool, these gift cards help keep SMBs engaged with their communities during the holiday season.
5. Mobile Wallet and Contactless Payment Integration
More retailers are recognizing the value of integrating gift cards into mobile wallets like Apple Pay and Google Pay. With contactless payment methods growing in popularity, particularly since the pandemic, consumers are looking for easier ways to store and redeem gift cards. Retailers that offer seamless mobile integration stand to gain a competitive edge, offering a frictionless customer experience that aligns with modern shopping habits.
Preparing for the Holiday Season
Retailers, both large and small, should begin planning their holiday gift card strategies now. Whether you’re embracing digital solutions, integrating gift cards with loyalty programs, or offering eco-friendly alternatives, it's crucial to have these initiatives in place well before the holiday rush.
As we move deeper into the digital age, gift cards are evolving from simple pieces of plastic into powerful tools for customer engagement, loyalty, and even sustainability. The Engage2Reward Platform offers businesses the flexibility and convenience they need to implement some of these trends, ensuring they are prepared for the busy season ahead.
From digital integration to sustainability, the trends shaping gift cards in 2024 offer numerous opportunities for growth. Whether you're a large retailer or a small business, making the most of these trends could be the key to a successful holiday season.
