Gift cards: how important are they for your customer? How do consumers perceive gift cards and what is their experience with them? In this article, we explore the preferences and needs regarding gift cards from both the buyer and the recipient.
Consumers can purchase gift cards through various channels, both offline and online. Over the past year, online purchases of gift cards have significantly increased. Research shows that the number of online gift card purchases rose from 21% to 41%! This impressive growth cannot solely be explained by lockdowns, suggesting the trend will likely continue. One key reason to buy gift cards online is their instant delivery via email. Other benefits include 24/7 availability and the convenience of ordering from home.
Still, 59% of consumers prefer buying gift cards in physical stores. The main advantage? Nicely wrapped cards, ready to gift.
Consumers receive gift cards for various occasions, making them suitable for almost any moment. Last year, many recipients received gift cards from their employers. The average value of a gift card increased from €35 to €39. Christmas remains the most common occasion, followed by birthdays, work-related events, and thank-you gestures. Gift cards are the most popular Christmas gift, giving employees the freedom to choose their own present.
Once received, when do people redeem their gift cards? A third of those who received a gift card in 2020 spent it by February 2021. The remainder either haven’t used it yet or don’t know when they will. Some are concerned about expiry dates, fearing the card might become invalid before they get to use it. On a positive note, over half of gift card users spend more than the card’s value — on average an additional €47!
Most consumers consider a gift card more fun than ‘just cash.’ It gives recipients the freedom to pick something they actually want. It's a thoughtful gift, especially when you're unsure what to buy for that special someone.
Although digital gift cards are easy to buy and land directly in your inbox, 49% of consumers prefer them — slightly behind the 56% who still favor physical cards. The festive packaging remains a key reason. The good news? Gift cards purchased online are often shipped the same day with PostNL and delivered the next day.
Some tips for entrepreneurs selling gift cards: