ACROSS: There are a growing number of gift card providers on the market. In a nutshell, what is the general benefit of gift cards for shopping centers?
Jurij Triller: Firstly, gift cards carry significant emotional value. Gift cards allow people to express thoughtfulness when giving presents, while offering recipients the joy of choice – picking something they truly want or need. This personalizes the gift experience and strengthens the connection between the giver, the recipient, and the shopping center. Gift cards are an extremely efficient marketing tool for shopping centers, allowing them to work more closely with brand partners and to provide insight into sales. At the same time, they also increase visitor return rates, generate new customers, and offer opportunities to adapt the marketing plan. Last but not least, they are a source of income for shopping centers. Around 5% of money remains on the card. Of course, it also works the other way around: Anyone who receives a gift card worth 50 euros will usually spend more than those 50 euros. In summary, gift cards are more than just a convenient gifting solution – they combine emotional resonance for customers with tangible business advantages for shopping centers, making them a crucial tool in today’s competitive retail landscape.
Statistical Arguments for Gift Card Solutions
66.7% of consumers normally spend more than the gift card value
38.4% consumers say they have bought digital gift cards
21.7% of customers said they had become regular customers after receiving gift cards, increasing from 2019
30% of gift cards expire before the funds are fully redeemed.
ACROSS: What is the USP of your solution, SmartGifty?
Triller: The key USP of our product is its powerful marketing toolset and simplicity. It is web-based fully digitalized process; to begin, you only need internet access, a username, and a password. The most critical USP is the closed loop, which fully complies with e-money regulations. Around 80% of other solution providers are connected to Visa or Mastercard. The closed loop ensures that the funds from gift card sales are in the center’s bank account all the time. The center management team has complete control and a complete overview of all transactions. The center is the issuer of the gift cards and make the rules regarding the usage of the cards. Transactions are 100% transparent for the shopping center management team, and our solution provides 24/7, real-time insight into all data generated by gift card usage. Additionally, we offer e-gift card solutions that cater to the growing demand for digital options, adding flexibility and convenience for both the shopping center and its customers. SmartGifty combines simplicity, security, transparency, and flexibility to deliver a best-in-class gift card solution tailored to the unique needs of shopping centers.
ACROSS: Retailers, however, are already used to Visa and Mastercard.
Triller: That’s a valid observation, and at first glance, it might seem like a drawback of our system. However, what the value SmartGifty provides far outweighs this initial perception. While onboarding may seem slightly more complex and take a bit longer – primarily due to the need for a tailored setup – the benefits of our closed-loop system are unparalleled. In fact, besides the internet, the only thing a shop needs to start using SmartGifty is a barcode scanner. Our system can be launched independently or integrated with the existing software via an API connection (cash register, POS payment terminal). Once implemented, the shops will have no extra work related to reporting gift card transactions, because the input of all purchases will be automatic, eliminating manual input and additional administrative tasks. This means that while onboarding is a one-time effort, the ongoing benefits – such as automation, ease of use, and the security of a closed-loop system – make SmartGifty an optimal and rewarding solution for retailers in the long run.
ACROSS:How does selling and redeeming your gift cards work at shopping centers?
Triller: Issuing and selling gift cards can be done in a fast and straightforward manner via an info counter, a gift card machine, or a webshop. We offer the development of simple or customized gift card webshops, or we offer API connections to clients, thereby allowing them to do it on their own. Redemption at shops, cafes, and restaurants is easy with barcode readers, mobile devices, and POS terminals.
ACROSS: Does the center management team see how much money is used?
Triller: As mentioned, all data is transparent to management. At any time, the amount of money invested, spent, and left can be shown for each card, shopping center, and store. This can be evaluated at a given time or over a longer period.
ACROSS: At the core, your product is a data-driven marketing tool.
Triller: Absolutely. As I said, the centers’ management or marketing departments have complete access to all of the data for all of the shops and centers in their chains. They can analyze several statistics to plan effective marketing activities, maintain control over the gift card stock, etc. However, you have to understand and believe in the importance and efficiency of data to benefit from a service like ours. Just imagine if shopping centers also used BI; that data could be used for various marketing purposes.
ACROSS: Is SmartGifty an isolated solution that can work independently or be integrated into an existing digital environment, such as a loyalty program?
Triller: Yes, and we also offer different loyalty program options. The gift card provides new clients, and the loyalty solution makes the clients stay. A loyalty module can include cash back, point collection, and more. It provides insight into customer behavior and allows better and more personalized customer communication. Let’s take a closer look at the challenge of loyalty cards first. The significant advantage of loyalty programs is that you know exactly what customers buy, what their preferences are, where they usually go, etc., and you can segment them. Shopping centers are specific because every shop has its own POS. If we want to have all the data mentioned, everyone would need to be connected to the same POS system to do so at a shopping center. That, however, would be too expensive, and I don’t think tenants would share their receipts with shopping centers. Therefore, shopping center managers need to encourage retailers to scan their invoices in order to see the transactions. We don’t have that part, nor do we offer mobile application yet, but we are already in discussions with other providers to connect with them. Ideally – and this is what we would like to offer – loyalty programs and gift cards will be connected to get the best data insights.
ACROSS: What are the options if a loyalty program already exists at a center?
Triller: We see existing loyalty programs as complementary to SmartGifty, not as competitors. In fact, we actively encourage providers of loyalty solutions to collaborate with us to generate deeper and more actionable insights together. Shopping centers want retailers to scan their invoices and offer incentives or points. Our cards can work as such an incentive. One option could be that when a retailer reaches a certain number of points by scanning invoices, he receives a gift card. Furthermore, we can connect and integrate our system with another loyalty program.
ACROSS: What are other levels of personalization or customization that you offer?
Triller: Our product is versatile – we offer both offline and online options. Clients can customize the designs as much as they like, including adding photos or changing the design entirely. This flexibility applies to both physical cards and online versions, ensuring we meet a wide range of needs and preferences. This level of personalization and customization is critical in our field and makes a big difference for customers. Imagine you need to give a gift to someone special in just an hour, but you’ve forgotten. Simply select a meaningful photo that reflects your shared memories, upload it during your online purchase, and you’re all set.
ACROSS: What are some other special features?
Triller: We offer connection with digital wallets. You can quickly put the gift card in your digital wallet; when it’s there, you have no risk of forgetting it. That is another unique selling point. Visa or Mastercard-connected solutions cannot offer this. Furthermore, it is much more expensive to hand out gift cards that are connected to Visa or Mastercard, because they must be in line with banking regulations, etc.From a marketing perspective, our key strengths lie in our individuality, flexibility, and ability to adapt quickly to specific client needs. As a smaller company, we are much more agile and responsive, which allows us to deliver highly personalized and unique solutions.
Case Study Supernova Group
THE CLIENT: Supernova Group is a leading private real estate company with a buy-and-hold investment strategy focused on high quality retail properties in Central and Eastern European countries with strong macroeconomic fundamentals. Supernova Group broadly divides its portfolio properties into Single-tenant properties and multi-tenant properties. Single tenant properties comprise almost exclusively do-it-yourself stores located in Austria and leased under long-term agreements to OBI. Our multi-tenant properties operated under the Supernova Group brand include shopping centers, shopping parks and retail parks, and these are primarily located in Croatia, Slovenia, Romania and Slovakia. The total portfolio of Supernova Group encompasses over 110 properties with a total value exceeding 2.2 billion euros.
THE REQUEST: Supernova Group started with a gift card voucher and because of their requirements, Jurij Triller and his team provided a solution to change their system to an online platform, SmartGifty. Supernova Group now uses the SmartGifty in 35 shopping centers in Slovenia and Croatia, with more countries and locations on the way.
„The ability to offer our customers a unique personalized experience, on physical cards or on e-cards, is something that truly stands out and gives our shopping centres another competitive edge.«
Markus Pinggera, Managing Director of Supernova Group.
THE SOLUTION: A mobile and user-first web shop for customers with a 24/7, real-time, complete product overview in several shopping centers and markets, in which the client can optimize administration as needed. This results in a detailed overview of sales and redemption for each market, stock monitoring, and easy tenant transaction management.
THE RESULT: The Supernova gift Card is the most popular Shopping center Gift card in its regions – collection double digit growth rates every year – it is the perfect gift for customers and companies for employees alike – usable in hundreds of shops in 35 shopping centers all across Slovenia and Croatia.
Digital Gift Card Market – Significant Growth Factors
The digital gift card market is poised for substantial growth, fueled by various factors such as the rise of contactless payments, the demand for personalization, the boom in e-commerce, the tech-savvy consumer base, blockchain integration, strategic partnerships, and sustainability initiatives. As these trends evolve, the digital gift card market will expand, offering businesses and consumers innovative and convenient gifting solutions. The future of digital gift cards looks promising, with endless possibilities for growth and innovation. Learn more about the significant growth factors of the digital gift card market and more relevant topics dealing with gift cards and loyalty programs from the SmartGifty blog.
Jurij Triller
Jurij Triller is CEO of Smart Octopus Solutions.
