Adoption of Gift Cards Aids Small Business During Covid-19 Pandemic

A gift card is a token or certificate given by a retailer that is equivalent to a specific amount of money available for further use for a variety of purchases. From a retailer’s point of view, gift cards are discount coupons on the products customers purchased from the stores.

Over the past few years, the gift card industry has seen immense growth. According to Allied Market Research, the global gift cards market was valued at $619.25 billion in 2019, and is projected to reach $1,922.87 billion by 2027 with a CAGR of 15.4% from 2020 to 2027. To increase business, several market players are adopting new strategies. For instance, gift-cards offered to customers can be used as a marketing strategy for fruitful contributions.

BoldOrange’s gift card donations to aid non-profits

BoldOrange, a U.S.-based marketing agency recently launched a new service of distributing gift cards called GiftCardAid that offers discounted gift tokens to non-profit organizations as the company aims to help the nation struggling with Covid-19 pandemic. GiftCardAid, allows non-profit organizations to secure gift tokens for more than 100 stores and restaurants and the tokens include well-known companies such as Amazon, Walmart, and Speedway.

Margaret Murphy, the CEO of the company, claimed that the effort came together because of the trusted partnership with many brands that believe in investing in the community. The Covid-19 pandemic has reduced the income of many businesses, offering the gift card industry a new opportunity.

Gift cards to increase sales in Pittsburgh

Gift cards have the potential to lure new customers during the ongoing pandemic as there is no prominent source of income neither for the customers nor for the businesses. Therefore, Pittsburgh Downtown Partnership, a non-profit organization in Pittsburgh launched a gift card campaign for more than 65 businesses and managed to sell almost 1,000 gift cards in the first five days.

The goal of the organization was to bring much-needed sales during the pandemic, providing the customers up to 25% discount on the cards they buy. The approach is a win-win for all the people involved as it offers discount to the customers and helps the small businesses to increase their sales. With the growth of technology, several companies have launched e-cards to lure tech-savvy customers.

E-cards are in trend

With the adoption of digitization, companies have portrayed inclination toward e-gift cards for the ease of the customers. Tesco, a UK-based grocery retailer, has launched e-gift cards for the self-quarantined customers who want to pay for the groceries delivered by the volunteer. Those who are unable to reach grocery shops can buy volunteer e-gift cards, which can be emailed directly to the self-quarantined customers. Moreover, there is a tracking system provided by the company that helps customers to check the balance of the gift card.

During these trying times, gift card providers have developed new strategies to help and support small businesses. Therefore, several non-profit organizations are collaborating with gift card sellers and have come forth with new ways to help society.

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