The Rise Of The Hybrid Shopper & What It Means for Your Gift Card Program

January 10, 2023

In a matter of months, businesses had to radically adapt to online shopping becoming an all-but-necessary way of life. Eventually customers and merchants welcomed the return of in-store traffic: but now it was consumers that had changed. Enter the hybrid shopper.
This new breed of customer expects a seamless cohesion of online and physical shopping. Consequently, businesses are transforming yet again. But many are overlooking a crucial driver of revenue in this latest overhaul: gift cards. Here’s how to woo any hybrid shopper with yours.
Who is the Hybrid Shopper?
In a nutshell, hybrid shoppers utilise a combination of online and in-store touchpoints in a single customer journey.
For example, they may visit a store solely to try on garments or test out a gadget, then purchase online. Alternatively, they might browse extensively online before purchasing in-store. Likewise, they could browse and purchase online yet pick up in person, on-site.
Source: Raydiant
By the numbers
A recent consumer surveys reveal the prevalence and key factors of hybrid shopping:
- 46% of consumers preferred in-store retail experiences vs. 56% preferring online.
- 55% of online shoppers make their purchase in-store.
- 59% of shoppers claimed the ability to shop on mobile is an important factor when deciding to shop with a particular store or brand.
- 26% of shoppers cite convenience as the top priority among online and in-store purchases, more important than price (21%) and product offering (15%).
What’s Driving The Hybrid Shopper?
For your business to adapt to this type of shopping, you need to look beyond its obvious benefits and focus on the deep motivating factors driving today’s hybrid shopper.
Higher customer experience standards
The pandemic quickly caused much of the world to shop online for nearly everything. And we embraced purchasing without the commute, the crowds, or the small talk even faster.
Normalcy finally returned. And in the new reality, we expected better and faster customer experiences than before.
So much so that post-pandemic, a single, negative in-store experience would turn 55% of shoppers away for good. After the second or third, that number rises to 92%. Consequently, businesses are turning towards digital solutions to solve common physical shopping challenges.
- Self-serve kiosks and self-checkouts cut down on in-store wait times and limit unwanted interactions.
- Some retailers allow in-store purchasing via QR codes. Customers simply scan the code on the price tag and pay through the store’s app.
Supply-chain challenges
Multiple lockdowns, one blocked international canal, and rising inflation were just the beginning of global shortages and stores struggling to keep shelves stocked.
Now consumers (who already expect improved in-store shopping experiences) aren’t finding what they need—and leaving behind even their most beloved brands as a result. In fact, 59% of shoppers would shop elsewhere rather than holding out for something to be restocked.
- Many retailers now offer restock notifications via email sign-ups online and in-store.
- Businesses are connecting inventory visibility across all channels and streamlining the in-store and online process of ordering.
Source: Raydiant
‘Gotta have it now’ mindset
Digitalisation reached warp speed during the pandemic. And as the world was brought to our fingertips, our patience levels hit rock bottom. According to recent consumer research:
- 27% of respondents expected delivery within 1-2 days
- 50% expected delivery within 3-4 days
- 18% expected delivery within 5-6 days
- Less than 5% were satisfied with delivery in +7 days
Businesses responded by remarketing health measures to hybrid shopping methods which allowed consumers to dodge in-store shopping and shipping.
- Buy Online, Pick Up In Store (BOPIS) allows customers to simply pick up their items in-store.
- ROPIS (Reserve Online, Pick Up In Store) keeps items on hold for customers to buy in-store.
Key Takeaways For Attracting The Hybrid Shopper
- A positive in-store experience is crucial and affects the likelihood of future physical and online transactions with your business.
- Seamless integration of physical and digital store operations should include flexible ordering, payment, pick-up and delivery options.
- Communication is key when it comes to product shortages and restock notifications.
Adjusting Your Gift Card Program To The Hybrid Shopper
Hybrid shopping and gift cards have a lot in common. They’re convenient, allow more customers to discover your brand, and aren’t going anywhere anytime soon.
In fact, in the US, total gift card value sold increased by 2.2%, with digital gift card value rising an astonishing 77% between Black Friday and Christmas Eve 2022 compared to the same period during 2021.
And here’s some more good news: it only takes a few small adjustments to optimise hybrid shopping and gift card use for your business. Let’s jump in.
The Hybrid Shopper Requires A Hybridised Gift Card Program
Considering that 88% of US adults believe it’s important for a business to offer both in-store and online purchasing options, it would be naive for brands to not address gift cards in their omnichannel strategy.
Flex your gift card flexibility
Hybrid shoppers value options and adding some to your current gift card program is certain to win them over. That means going beyond simply offering physical and digital gift cards.
- Enable online shoppers to purchase and send/ship digital and physical gift cards.
- Offer printable digital gift cards for easy in-store usage.
- Simplify the online checkout process for physical gift card holders.
- If feasible, add mobile wallet capabilities for both types of your brand’s gift cards.
Consider a physical gift card facelift
In addition to hybrid shopping, sustainability is now a major factor in customer purchasing decisions—even gift cards. So much so that environmental concerns were the third-largest factor (42%) consumers considered when opting for digital gift cards.
Choosing an alternative to single-use plastic gift cards appeals to consumers who want to give a physical gift card without hurting the environment. Paper gift cards also promote a better brand image, cost less to produce, and offer a number of advantages over their plastic counterparts.
Get Hybrid Shoppers Through Your Doors & Optimise In-Store Visits
One of the greatest benefits of a successful gift card program is higher transaction values. Online shopping may be slightly more preferred among consumers today, but combining in-store shopping and gift cards has the potential for the greatest short-term and long-term benefits.
- As mentioned earlier, 55% of online shoppers purchase in-store.
- A positive in-store visit influenced 63% of customers to spend more.
- Satisfying in-store experiences encourage 63% of consumers to support a store online.
- On average, gift cards increase average transaction value by 38%.
Here are some ways to get more customers through your doors.
- Offer exclusive in-store offers.
- Provide BOPIS and ROPIS pick-up options.
- Create opportunities for in-app purchases on-site via product QR codes.
Ensure key touch points promote gift card sales
Match incentives to get customers shopping in-store with opportunities to purchase and redeem gift cards once inside.
Checkout & pick-up
As long as you’re providing alternative pick-up options, make the most out of the checkout or pick-up counter. Make sure gift cards are on display and visible wherever customers pay for or collect orders. It’s important to realise that nearly ¼ of all gift card purchases are unplanned, and ⅔ of those last-minute purchases occur at the checkout counter.
Source: Deloitte
Dressing rooms
While a good number of customer journeys begin online and end on-site, the reverse is also true. In fact, 56% of shoppers researched/tried products in-store before purchasing online. Promote gift card sales and special offers in places where shoppers simply ‘browsing’ are likely to see them.
Self-serve checkout/kiosks
Seeing that any point of purchase is an opportunity to promote gift cards, make it easy for shoppers to buy them while completing self-serve transactions. Additionally, you can create prompts to add a gift card to in-store QR purchase codes.
Establish & Maintain Communication With Hybrid Shoppers
Customer loyalty is more fragile than ever, with nearly ⅓ of consumers surveyed claiming they are switching brands more often than before. Now consider that 34% of consumers try out a new brand or store thanks to receiving a gift card. The point: you need to appeal to new shoppers at each customer touchpoint.
Encourage online opt-ins
If someone received an unfamiliar brand’s gift card, where would they go to check them out? Bingo. Take advantage of new online visitors by offering special discounts or offers for signing up to your mailing list.
Nurture digital gift card leads
One huge bonus of digital gift cards is that recipients are automatically added to your mailing list. Keep their finger off the unsubscribe button by providing targeted, relevant content and incentives to shop online and visit your physical location.
Be up front about shortages
Minimise the chances of a dreaded negative in-store experience by making low stock quantities or shortages visible on your website.
Loyalty Programs
By promoting loyalty programs at the check-out/pick-up counter and online, you widen the net of opportunity to capture hybrid shoppers and maximise the benefits of gift card redemption.
Gift Cards And The Hybrid Shopper: A Win-Win For Your Business
In short, the data is clear: gift card usage and hybrid shopping will only increase in the coming years. Maximise their benefits for your business by strategically integrating each with the other and be prepared to see improved customer acquisition, brand loyalty, and revenue growth.
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