Gift card spending has grown from $40 billion in 2003 to over $100 billion in 2014, says the Mercator Advisory Group. According to the National Retail Federation’s Monthly Consumer Survey, they have topped the list of most requested gifts for the last eight years. In a newly published whitepaper, Blackhawk Network breaks down the process of gift giving and reveals why gift cards continue to experience such rapid growth. What motivates people to buy them and so eagerly want to receive them?
THE GROWTH OF GIFT CARDS
One of the most popular forms of prepaid products – gift cards – debuted in the 1990s and have enjoyed significant growth over the last decade. As one of the most requested gifts, their growth is expected to continue over the next several years. (see below: Gift Card Projected Growth 2003-2017). Gift cards come in two forms: open-loop gift cards, which carry the brand of a major payment system like Visa, MasterCard or American Express, and closed-loop cards, which are redeemable only at specific retailers.
Research on what makes gift cards so popular is lacking, although according to global prepaid network, Blackhawk Network, there are many studies that detail the specifics of the number, type, occasion and purchase locations related to gift card purchase.
But understanding why people give gift cards can help merchants, program managers and issuers tailor marketing messages and programs to increase sales. Blackhawk first conducted a study in 2008 to investigate shoppers’ motivations for gift card purchases in which consumers were clustered into groups based on their psychological motivations toward gift cards. This study was recently updated to reflect the changes since 2008 and have some surprising findings.
Blackhawk’s survey sample included 3,050 gift card buyers in the U.S., and of the total respondents, 63 percent had purchased at least one gift card in the last year. Respondents were asked about their gift card buying habits, as well as overall attitudes about shopping, online activity, and gift giving and gift cards.
Source: PYMNTS.com, read entire article here.
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
This year, Travel Tags partnered with The Gift Card Network to expand the research and give you an all encompassing snapshot of in-store holiday gift cards. Click above to register your name - you don't want to miss this!
Research will be released in January 2015.
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
Black Friday: an opportunity for businesses to take their profits out of the red and into the black. At least that’s how it’s supposed to be. But this year, many stores saw lackluster results. The common problem? Offering huge discounts in the days leading up to Thanksgiving, assuming a one-time effort could turn profits around. By the time Friday arrived, consumers didn’t get the same feeling of capitalizing on the best bargains as years past. And their loyalty to a specific store? Nowhere in sight.
So what’s a store to do differently the next time around? Further slashing prices during that coveted stretch from Black Friday to Christmas isn’t the revenue-generating answer businesses are looking for. But a good loyalty program could very well be.
Last year, Merchant Warehouse polled over 100 small business owners and managers and 700 shoppers to get their take on loyalty during the back-to-school season — the second most lucrative time for businesses after the winter holidays (which brought in $601 billion in 2013).
The core finding? Implementing a loyalty program is a far more reliable and long-lasting strategy for gaining happy, repeat customers than slashing prices left and right.
As you’re planning for the year ahead, consider injecting some loyalty into your 2015 plan. Here are five lessons you can take with you into the new year to make sure you’re at the top of customers’ minds from January all the way through December.
1. SALES ARE TEMPORARY, BUT A GOOD LOYALTY PROGRAM IS FOREVER
2. IT BENEFITS SOME UNEXPECTED THINGS (like email open rates)
3. THERE'S STILL TIME TO BE AN EARLY ADOPTER
4. PUNCH CARDS ARE OUT; SOCIAL MEDIA ENGAGEMENT IS IN
5. LOYALTY PROVIDES ACTIONABLE CUSTOMER DATA
Source: Retail Customer Experience.com, read entire article here.
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
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