Fifteen to 20 percent of all transactions are intended to be gifts for someone else. But despite its popularity in the retail world, gifting has long been a tough go for givers, receivers, and retailers alike.
Gift givers are burdened with a mountain of barriers on their quest to give the perfect gift — from not knowing what to get for someone in the first place to not knowing their shoe size or shipping address at checkout.
Recipients are laden with the potential of offending the gift giver if they decide to return an item, and then the exchange/return process is left to them.
Retailers are consigned with excess returned merchandise and suffer lost sales, wasted money on advertising and marketing efforts, and excess shipping/return costs by not actively avoiding the stresses incurred on gift givers and recipients listed above.
This leaves a 15- to 20-percent-wide gap in the retail industry — and presents a massive opportunity to streamline the gifting experience for shoppers.
Pioneering companies are retooling the customer experience to meet their gifting needs with GiftNow, which flips the script on how people buy gifts by “digitizing merchandise” the same way cash was digitized with peer-to-peer money transferring apps.
Users can select a gift and send it in seconds without worrying about the size/color/style or even shipping. Recipients are surprised with a delightful, thoughtful, and innovative gift unwrapping and acceptance experience. They then have the control to customize the gift exactly to their liking — or even pick a different item from the retailer’s website — and have it delivered to their door.
Adopting GiftNow has paid off for retailers in many key business areas, among them:
- Acquiring new customers: Retailers receive two new customers when GiftNow is used as a part of a checkout experience — the gift giver and gift recipient.
- Minimizing returns: By putting gift recipients in the driver’s seat, retailers can get it right before even shipping. For example, Father’s Day gifts sent through GiftNow in 2018 were altered or exchanged 80 percent of the time before shipping. No need for returns or restocking. That’s savings on savings on savings.
- Enhancing the customer experience: Creating a path to purchase that doesn’t necessitate guessing at conventional inputs like size, color, or shipping information allows people to “deliver” a gift digitally any time, anywhere — a slam dunk in improving customer experience and brand affinity.
- Driving incremental revenue: Unlocking transactions that had never been possible before creates secondary customers, 50% of whom were previously invisible to retailers as the end consumer. Now they’re engaging with the business to pick their gift online or in person.
Easier gift giving equals pure upside for retailers.
This blog post summarizes an article that originally appeared on the Synchrony State of Pay blog on July 2, 2019.