News • 18.07.2018

State of consumer gift card preferences in 2018

Lifestyles and technology are driving increased consumer interest in gift card innovations

Gift card; Copyright: panthermedia.net/orson
Source: panthermedia.net/orson

Blackhawk Network, a global financial technology company and a leader in connecting brands and people through branded value solutions, today released findings from the 2018 State of Consumer Gift Card Preferences survey.* The research, which is based on the responses of more than 3,000 U.S. adults, outlines trends in consumer gift card preferences and highlights consumer and employee preferences for gift cards as incentives.

"Gift cards hold mass appeal, and offer a seemingly endless range of options—physical, digital and mobile—giving brands and organizations new ways to engage with their audiences," said Talbott Roche, chief executive officer and president, Blackhawk Network. "As consumer gift card purchasing and usage preferences continue to evolve, there will be more opportunities for merchants to drive traffic, sales and loyalty with their own gift card programs. Businesses can prepare themselves by considering consumer insights and embracing the changes coming to our industry."

Key trends from the 2018 State of Consumer Gift Card Preferences research, include:

Interest in digital gift card options continues to grow.

  • The research found that although the surveyed consumers currently purchase more physical gift cards than digital ones, digital gift card purchases are poised for continued growth.
  • More than half of the consumers surveyed report interest in giving digital gift cards that can be added to a mobile app or digital wallet, especially millennials (69 percent) and smart phone users (59 percent), who are nearly three times more likely to be interested than those without a smartphone (17 percent).

"Despite growth in digital, the demand for physical gift cards is still strong and, in many cases, preferred," said Roche. "But even as consumer attitudes shift toward digital gift cards, there is still a need for both mediums as part of consumers' omnichannel journey. A big opportunity for both physical and digital growth lies with brands and organizations taking the personalization of gift cards to the next level."

Millennial shoppers want to be engaged wherever they are through contextual commerce.

  • Allowing consumers to seamlessly make purchases in the environments or on the social platforms they use regularly—called contextual commerce—is one way the gift card industry is changing.
  • When asked about gift cards sent via social media platforms or messaging apps, 60 percent of 18‒34-year-old consumers surveyed revealed they would be interested in receiving a gift card through a social networking platform or messaging app, like Facebook, and 54 percent would be interested in giving one.

Personalization is important to the future of gift cards.

  • Technology and data gathering capabilities have aided in consumers' expectations for personalized experiences in many facets of their lives—shopping and gift giving included. When consumers are purchasing physical and digital gift cards to give, there are numerous opportunities to provide custom, personalized options, including photos, video or written messages.
  • Between 30 and 40 percent of consumers surveyed would be encouraged to spend more on a gift for personalization options, regardless of whether the personalization is a message, gift wrap, video or photo.
  • More than 60 percent of consumers surveyed feel a greeting card or a gift card personalized with their own message makes a gift feel more thoughtful.
  • The study found that consumers surveyed are also interested in a variety of other gift card innovations. For example, 44 percent would be interested in receiving a gift card that can be used to play the lottery; while 60 percent would be interested in receiving a gift card that can be used for multiple brands within a specific category and 64 percent would be interested in receiving one that can be used at a variety of local restaurants within a specific city or metro area.

Consumers and employees prefer gift cards as incentives.

  • Most surveyed consumers (82 percent) would prefer receiving a gift card or prepaid card over other incentive options like discounts, checks or merchandise.
  • Eighty percent of those surveyed found gift cards to be more influential on purchase decisions than options like coupons and bonus dollars.
  • When it comes to loyalty, more than half (52 percent) of consumers surveyed report that gift cards would keep them engaged in a loyalty program over other options like merchandise, discounts and airline miles.
  • Employee gift card incentives are also extremely popular among employees across generations. Consumers surveyed reported that gift card rewards from employers are comparable in popularity to cash rewards. Sixty-nine percent of employees would like to receive a gift card as a reward from an employer, compared to the 73 percent that would prefer a cash incentive.
Source: Blackhawk Network

related articles:

popular articles:

Thumbnail-Photo: The global state of autonomous stores
18.12.2023   #Tech in Retail #self-checkout systems

The global state of autonomous stores

The stores are located in various retail segments such as food retail, fashion, electronics, convenience stores and fast food.

In a highly competitive global retail landscape, autonomous stores are an emerging force that addresses changing consumer behaviors, reduces operational costs, improves profitability, and powers revenue growth strategies. Advancements in autonomous ...

Thumbnail-Photo: Toshiba Launches New ELERA™ Security Suite to Address the Industry’s...
22.09.2023   #cashpoints #customer experience

Toshiba Launches New ELERA™ Security Suite to Address the Industry’s Challenges Around Shrink

Toshiba’s A.I.-powered solution empowers retailers across the globe to better manage loss prevention and protect profits

Security Suite from Toshiba Global Commerce Solutions empowers retailers to minimize shrink...

Thumbnail-Photo: Nedap teams with Foot Locker to extend RFID project...
05.10.2023   #omnichannel #software applications

Nedap teams with Foot Locker to extend RFID project

Foot Locker successfully matches supply and demand in newly opened stores in Eastern Europe using RFID technology

Nedap the global leader in RFID solutions, announces that multi-brand sports fashion and apparel retailer Foot Locker has successfully extended Nedap iD Cloud to its new, Eastern European stores. The objective is to offer the best possible ...

Thumbnail-Photo: New German vending partner for ITL
30.11.2023   #Tech in Retail #cash management

New German vending partner for ITL

Innovative Technology (ITL) have recently announced Bernd Boddart as their latest trading partner

Bernd Boddart will be supplying their cash validation and biometric age verification solutions to the German vending market. Bernd Boddart, based in Mönchengladbach, Germany, have 30 years of experience in the field of coffee machines, table ...

Thumbnail-Photo: EuroCIS 2024: Go beyond today!
16.10.2023   #retail #Tech in Retail

EuroCIS 2024: Go beyond today!

27 to 29 February 2024 will see the Who’s Who of Europe’s retail technology sector meet in Düsseldorf

Go beyond today! EuroCIS at the end of February will once again show solutions and products for the retail of the future @Messe DüsseldorfIn late February, numerous companies will again exhibit solutions and products for retailers to shape and ...

Thumbnail-Photo: EuroCIS 2024 - technology special
11.12.2023   #online trading #e-commerce

EuroCIS 2024 - technology special

The latest technology solutions and trends for you and the retail sector

At EuroCIS 2022 from February 27 to 29, 2024, the Leading Trade Fair for Retail Technology, we will be looking at all the important and current topics relating to technology in retail: AI and Machine Learning, Payment, Connected Retail, Seamless Store and Smart Energy Management and many more.

Thumbnail-Photo: MPREIS Transforms Operations with Zebra Workcloud Task Management™...
06.11.2023   #customer experience #software developement

MPREIS Transforms Operations with Zebra Workcloud Task Management™ Software Solution

Austrian food retailer to streamline communication in around 300 stores to improve staff engagement, inventory optimisation, and customer satisfaction

MPREIS has around 300 Austrian stores in regions across Tyrol...

Thumbnail-Photo: Out of Stock in Retail and innovative solutions to avoid them...
07.11.2023   #brick and mortar retail #customer satisfaction

Out of Stock in Retail and innovative solutions to avoid them

Due to various events, the availability of goods in retail will be increasingly restricted from 2022, with the result that customers cannot find in food retail the products they wish to buy, because those products are sold out, are temporarily ...

Thumbnail-Photo: Unified Commerce Platform in focus
24.10.2023   #omnichannel #software developement

Unified Commerce Platform in focus

Handover at REMIRA: Dirk Bingler supersedes Stephan Unser as CEO

REMIRA is setting the course for future development of the company: On November 1, Dirk Bingler (48) will become the new CEO of the supply chain and omnichannel software expert headquartered in Dortmund. The previous CEO Stephan Unser (62) moves to ...

Supplier

Innovative Technology Ltd.
Innovative Technology Ltd.
Innovative Business Park
OL1 4EQ Oldham
Captana GmbH
Captana GmbH
Bundesstraße 16
77955 Ettenheim
Zebra Technologies Germany GmbH
Zebra Technologies Germany GmbH
Ernst-Dietrich-Platz 2
40882 Ratingen
REMIRA Group GmbH
REMIRA Group GmbH
Phoenixplatz 2
44263 Dortmund