Plastic Card Series: Understanding Consumer Interactions with Gift Cards

Oct 24, 2011

We are constantly striving to inform our clients on the latest industry trends, topics,  and innovative ideas that help grow their business. With this in mind, we are publishing  a series of posts on custom printed plastic cards and the plastic cards industry. For our first installment, we took a look at customer interaction with gift cards.

We recently examined First Data’s 2010 U.S. Gift Card Consumer Insights Study. While the report may not sound like the most riveting read, this is the kind of stuff that gets our juices flowing. First Data has conducted this study for ten years, to identify gift card market and consumer trends as well ass consumer needs and preferences. The document is chocked full of helpful for information on what drives gift card sales. This post features some of the report’s most useful insights:

Why Consumers Register for Gift Cards

Gift cards have grown into an $87 billion industry and have become the default gift for a variety of occasions. But exactly which holidays and occasions are most popular? By understanding statistics like these, businesses can prioritize their gift card program based upon which plastic card options drive the most sales.

As shown above, birthdays and Christmas are the most popular occasions for a gift card purchase. 17% of gift card purchasers said they would not have purchased the card had the appropriate occasion-based design been unavailable. Therefore, it becomes crucial that businesses with gift card programs provide their customers with a variety of options.

Cards over Gifts

Gift cards offer both the purchaser and intended receiver of the card a flexibility that ordinary gifts do not provide. This was a driving factor behind the purchase. Consumers enjoy options and gift cards provide them in spades. Convenience and ease of shipping were also critical determining factors.

Consumer Over-Spending by Industry

An encouraging fact to note is that 72% of gift card receivers say that they spent more than the value on the gift card. The true value of the cards goes beyond the original purchase. The average amount of over-spending varies depending on the industry.

Other Important Consumer Preferences

While personalization and custom design are important factors in determining why consumers purchase gift cards. There are also a wide range of other services and components that make the cards enticing. Among the most popular is the protection that businesses offer when a gift card is lost or stolen. These types of guarantees are reassuring to customers who may be sending gifts in the mail. These are also important statistics for businesses when deciding which card options to implement:

Clearly understanding this data will ensure a successful implementation of your gift card program. Understanding customers’ purchase preferences is critical to future sales and overall growth. Stay tuned to the Concept to Consumer blog for more information on the plastic card industry and how cards can benefit your bottom line.