GiftCard Partners Blog

We know digital gift cards and incentives are popular, based on their ease of delivery and eco-friendly nature, while still providing the same flexibility of a tangible gift card.  But what we want to know is who is most likely to buy this new technology? Research conducted by Urban Wallace Associates and sponsored by CashStar provided the GCP team with some insight. In this eGift Card Buyer Study, they interviewed over 6,000 eCert users across a national sample. Here are some key findings: There are 3 different demographic shoppers: 1. Generous Gifter- This is primarily a mom who is responsible for all the family gifting. She works,is part of a two-income household, has children and is very busy. She is looking for an easy way to shop with a personal touch. Giving a gift card or eCert is easy. She spends approximately $35per gift. 2. Metro-Digital Shopper- A young urban professional who is busy, looking for instant gratification, and only shops on-line, via smart-phone or ipad, often on the go. The Metro-Digital Shopper is highly educated, tends to spend over $75 per gift card/eCert and purchases during peak times like lunch time and in the evening. 3. The Grateful Boss- ( This is the segment GCP was most excited about, as we had a little potential for B2B information!) This is typically a front-line manager who wants to provide instant gratification for a job well done. He/She is highly educated, makes over $100K a year, and 98% are married. They tend to purchase gift cards/ecerts an average of 5-7 times a year with an average value of $150- $200! They usually purchase during lunch time between 11 AM and 12PM. The Grateful Boss may have a secret budget for this program, purchase it out of his personal funds, or through a formal motivation program. But in any of these cases it is important to provide quick gratification for the employee and reinforce successful behaviors. The research also discussed that 85% of digital gift cards and incentives are incremental sales over plastic! Which begs the obvious question, why aren’t more retailers using eCerts? Let us know what you think about this by leaving us a comment!

The number of consumers shopping across multiple channels is expanding while retailers everywhere face margin challenges and an uncertain economy. Consumers will seek information both on-line, and through mobile technology but will only shop in the most convenient channel. Multi-channel retail has become theexpectation (and a competitive advantage). This strategy allows the company to be everywhere the consumer is shopping, and lowers the risk the shopper will inquire at their outlet, and spend their money elsewhere. The difficult part of multi-channel retail is making the transition and keeping up with the consumer trends. How are multi-channel retailers reacting to this change in consumer shopping?

In our constant efforts to stay apprised of up and coming gift card technologies, GiftCard Partners recently investigated which of the Top 50 Retailers(1) are accepting gift cards as payment online. We found that over half of the Top 50 retailers do. Among those that don’t, they are primarily restaurants or drugstores. Getting in touch with your gift card e-retail side is now more important than ever. Wide-spread broad-band across America has contributed to an increase of internet users, from 55% to a whopping 84% in the last 10 years(2). Not only will adopting online gift card redemption enhance customer convenience, increase sales, and amplify loyalty; it is also a foray into the mobile internet realm, which is predicted to overtake desktop internet usage by 2013(3). No matter the size of your business, not accepting online gift card redemption is a missed opportunity to engage with customers via their potential preferred researching and buying method. Other opportunities include: * Decrease  in breakage (if they are in your breakage #’s they are lost customers)

GiftCard Partners' Deb Merkin attended the CashStar Digital Gifting roundtable and said it was jammed packed with great market research and the roundtable discussion was invaluable. CashStar’s Retailer Roundtable brings together leading analysts, technologists, thought leaders and a myriad of retailers to discuss the future of digital gifting.
CVS/pharmacy and
Brinker, 2 of our clients will be present and taking part in this roundtable! Digital gifting has altered the way the B2B gift card market progresses, with efficiencies for the retailer, buyer and the end consumer, while directly tying in with mobile and
social media initiatives… We look forward to seeing the results of this meeting in the coming weeks. PORTLAND, Maine, Jul 14, 2011 (BUSINESS WIRE) -- CashStar, the digital gifting and incentives company, today announced that it has brought together the industry's top influencers and retailers for the world's first event exclusively focused on the e-gifting industry. Taking place today in CashStar's headquarter city of Portland, Maine, the CashStar Retailer Roundtable has brought thought leaders together to brainstorm the future of digital gifting with a focus on mobile and social channels.
Click to read more about this landmark digital gifting event.

Cutting edge technology is top of mind for companies who provide gift cards in their programs. Here are a few predictions from CashStar and GCP for how the Digital Age will affect gifting: 1. Instant Communication: The email channel will grow and become a primary means of sending and distributing gift cards. Speed, convenience and cost will drive the transition from plastic to digital. Technologies like QR Codes will merge offline marketing and advertising to accommodate retailers’ need to bridge online and offline and consumers’ need for instant gratification. 2. Social Gifting: We have all heard the buzz about “Facebook Commerce.” As consumers become more comfortable socializing and communicating through social networks, this channel will continue to grow in importance for retailers: first as an engagement tool, primarily, and then as a commerce channel. Retailers who have active, engaged Facebook fans will witness the most growth for their digital gift cards. Smart retailers will also utilize the social channel as a means of acquiring customers and deepening relationships. “Social gifts” and incentives are valuable tools in this milieu. 3. Mobile Gifting: Mobile is an emerging channel that will develop as smartphone penetration (and supplementary technologies like mobile wallets) increases and retailers begin the process of enabling point-of-sale redemption. Retailers will want to make sure their customers’ mobile purchases – and the recipients’ experiences, especially – are as friction free and convenient as possible. So retailers: build or partner wisely. 4. A richer gifting experience: In the digital world the customer experience becomes king. Simply offering a “plastic-like” alternative or a message with a “code” will not impress the savvy, discerning digital consumer. They will want digital personalization options and a friendlier, easier user experience. This is only the tip of the technology iceberg, follow our blog to stay on top. Do you have your own digital age predictions? Post them if you've got them. Source: David Douglas Stone is co-founder and CEO of CashStar, digital gifting and incentives company.