Over 3,300 U.S. consumers over the age of 18 were surveyed for this year’s Consumer Insights Study from First Data. The Consumer Insights study provides a comprehensive gift card insights on consumer usage. This year’s study shows how vital gift card programs are to a retailer’s marketing strategy. The popularity of online shopping and usage of mobile wallets have been embraced by consumers, as the desire grows for faster and more personalized shopping experiences.
Gift Cards Drive Revenue
We know that gift cards can drive traffic to your store, but how are they increasing retailers’ bottom line?
- 70% of consumers have purchased or received closed-loop plastic or e-gift cards in the past 12 months
- 52% of consumers say that receiving a gift card prompted them to visit a store more frequently while 40% say they wouldn’t even have visited the location if it weren’t for receiving the gift card
- A whopping 69% of gift card recipients spend more than the value of their gift card
- $27.29 was the average overspend, also known as lift
Virtual Gift Cards
Virtual gift cards, sometimes known as digital gift cards, eGift cards, and eCertificates continue to grow in popularity. While virtual gift cards are trending upwards, they are not taking market share away from plastic gift cards. Offering the right mix of both plastic and virtual gift cards is important.
Plastic gift cards
- 25% of consumers are purchasing more plastic gift cards than last year
- 58% of consumers purchased the same amount of plastic as last year
- Consumers are spending an average of $58.95 on plastic gift cards, which is up 2.3% from 2014
Virtual gift cards
- 48% of consumers purchased the same amount of virtual gift cards as last year
- 41% of consumers purchased more virtual gift cards than last year
- Virtual gift card spending was $56.98, up 3.8%
Mobile Wallets and Online Shopping
Mobile wallets and online shopping continue to grow along with the desire for perks and the overall “customer experience”. Gift cards are becoming the ideal tool for customers who desire to be incentivized, rewarded, and recognized. 64% of shoppers would prefer to receive a $10 gift card as a reward for using retailer loyalty apps and mobile wallet programs (with 16% preferring the reward in the form of a coupon).
Other Interesting Gift Card Insights
In the last three years gift card self-purchasing has more than doubled. 45% of consumers purchased gift cards for themselves in 2015. Self-purchasing gift cards are also popular across all generations: 49% of millennials, 44% of generation x, and 42% of baby boomers all reported self-purchasing gift cards in 2015. Gift cards aren’t just for giving!