GiftCard Partners Blog

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.

The only thing constant in the B2B gift card market is that it’s constantly evolving. This can leave retailers scrambling to keep up with the flow and not get left behind. One such evolution is digital gift card growth in the B2B market. Retailers are taking a closer look at the effect this growth in digital has on the bottom line of their B2B gift card program.

A recent CashStar study discussing the popularity of gift cards showed a surprising number of consumers are looking for a smartphone solution to keep track of the gift cards they receive. Thestudy looked at a diverse group of gift card givers and receivers from different demographic groups and regions across the country. What they found was that most prefer to give or receive mobile gift cards for a variety of reasons, including convenience, balance tracking, and the personalization it gives the ‘gifter’. So as gift cards remain a top gift choice for 9 years running, it’s important for merchants to note the desire consumers have for managing and storing them digitally.

When it comes to millennials and technology e-gift cards are growing in popularity. A recent article from Loyalty360 discussed how millennials prefer e-gift cards to their plastic counterparts. 14 percent of millennials have given or received an e-gift card in the past year compared to only 7 percent of 30-49-year-olds and about 8 percent of 50-64-year-olds who have given or received an e-gift card. So why do millennials prefer e-gift cards? While not specifically asked if they preferred e-gift cards over plastic, millennials did offer a hint; millennials are twice as likely to have lost a gift card before they could spend the entire balance. About 40 percent of millennials have admitted to losing a gift card. E-gift cards are appealing to those who worry about losing cash. They are harder to lose since they exist in your email as opposed to a physical piece of plastic that may never make it into your wallet and are easier to track. E-gift cards also save time on the part of the 'gifter' as they can be purchased with just a few clicks from your computer, tablet, and mobile device from anywhere at any time. Many retailers can scan and redeem e-gift cards directly from your mobile device, some retailers even offer rewards programs for doing so. Electronic gift cards are growing more common for retailers. 59 percent of gift cards are available electronically, up from 41 percent back in 2010. It's also good to know that most retailers will also accept electronic gift cards (as well as plastic) online, great for the online shopper to complete their whole transaction seamlessly online without having to open their wallets. While for some, e-gift cards may seem like an impersonal gift, many retailers are combating that by offering personalization to electronic gift cards. Multiple designs,  personal photos, and videos can all be uploaded directly to the e-gift card to really improve the buying and giving experience. Here's what the Washington Post had to say on, "Why millennials prefer electronic gift cards."

Online purchasing and mobile apps have been a go-to in our lives both personally and professionally, and this trend is growing in the gift card world as well.  Purchasing online gift cards are becoming the industry standard. According to First Data's 2014 Consumer Insights
survey, in comparison to 2013, more people chose online gift card purchasing.  Purchasing online gift cards increased to 34% in 2014 – up from 26% in 2013.  The purchase of gift cards using social networks, such as Facebook, increased from 8% in 2013 to 13% in 2014.  Both plastic and e-gift cards can be purchased online.  Overall, 81% of respondents planned on purchasing the same or more plastic gift cards than in 2013 and 84% planned on purchasing the same or more e-gift cards than in 2013. Gift card apps came to the forefront in 2014.  55% of consumers are interested in using an app to store gift card information on their mobile devices and 58% of consumers said they would prefer to use one app to store multiple merchants instead of using separate apps for each.  With more than 13% of gift card purchases in 2014 made through the use of a mobile app, mobile apps are becoming mandatory for a successful gift card strategy. For more insight into the First Data Consumer Insights Survey
click here!