2014 Prepaid Consumer Insights Study
Post on 15-Dec-2016
Gift cards are an effective way to drive foot traffic and increase overall spending.
Driving Sales & Foot TrafficRespondents who receive either a plastic or a virtual gift card said that they spent an average of $23.41 beyond the original value of the gift card. This is an increase from $20.79 in 2012. Additionally, 51% of respondents said
that receiving a gift card prompted them to visit a store more often than they would have otherwise.
1,224 respondents in 2014
749 respondents in 2014
of 2014 respondents said they were more likelyOverspend
2014: $23.41 51%
986 respondents in 2012
In the past 12 months, has receiving a gift card prompted you to visit a store more often than
you would have otherwise?
On average, about how much more did you spend beyond the original value of the single merchant gift card(s) you received in the last 12 months?
New Trends.New Opportunities.
THE 2014 PREPAID CONSUMER INSIGHTS STUDY
For the thirteenth year in a row, First Data has commissioned a comprehensive study of U.S.
consumers regarding gift cards. For the first time, this study not only sought to measure sales
of plastic gift cards, but also virtual e-gift cards as well as consumer attitudes and behavior.
This valuable research also reveals changes in usage and consumer perceptions by providing
comparisons with similar research done in 2013.
Time to think beyond the mobile tipping point
Over the past year, the widespread adoption of mobile
technology has triggered a fundamental shift in how people
interact with gift cards. With apps that help people connect with
friends, listen to music and find their way home, consumers are
relying on their mobile devices in virtually every aspect of their
personal and professional lives. And, as this years Consumer
Insights Study reveals, the same holds true when it comes to
purchasing, receiving and managing their gift cards.
Data from both surveys was weighted to
correspond to census distributions
Surveys were conducted in September 2014
2,371 respondents were screened to have
purchased or received closed-loop plastic or
virtual cards in the past 12 months
Online surveys were nationally distributed to
3,724 U.S. consumers over the age of eighteen
3 The Era of OnlineCompared to 2013, respondents are increasingly choosing to go online to purchase gift cards. Online purchases of gift cards increased substantially from 26% in 2013 to 34% in 2014, while on-premise purchases in store, at restaurant or entertainment locations decreased dramatically from 51% in 2013 to just 44% in 2014. Purchases of gift cards using a social networking site such as Facebook increased from 8% in 2013 to 13% in 2014. The percentage of respondents using an app, a new category, was 13%.
Digital strategies are becoming key to a successful program.
In person, at a store that sells gift cards for many different retail stores, restaurants, or entertainment locations (gift card mall)
In person, at the specific store, restaurant or entertainment location
By internet, using the specific stores website
By internet, using a websiteother than a social networking sitethat sells gift cards for many different stores, restaurants or entertainment locations
By internet, using social networking site such as Facebook
Using an app on your mobile device (New for 2014)
By ordering via mail or phone from the stores catalog
Reinforce brand messaging
Drive more foot traffic back in store
Offer targeted rewards Drive more sales
through incentives, loyalty and rewards
Today, retailers have so many new and exciting ways to reach out to
consumers so they can:
Why are gift cards more popular than ever? The following six
consumer trends tell the story.
1 Virtual & Plastic Growth81% of respondents said they intend to purchase the same, or more, plastic gift cards in 2014, with 20% saying they intend to increase the number of cards. 84% of respondents said they plan to purchase the same or more e-gift cards than last year, with 33% saying they plan to increase the number of purchases.
MORE THAN LAST YEAR
ABOUT THE SAMEAS LAST YEAR
FEWER THAN LASTYEAR
20% 61% 19%Compared to 2013, how much would you say you are purchasing?
Respondents who purchased physical gift cards
1,089 respondents in 2014
33% 51% 15%
MORE THAN LAST YEAR
ABOUT THE SAMEAS LAST YEAR
FEWER THAN LASTYEAR
Compared to 2013, how much would you say you are purchasing?
Respondents who purchased e-gift gift cards
511 respondents in 2014
Retailers need to utilize all form factors to optimize revenue.
6Gift Card Apps Come of AgeAs mobile technology continues to blur the lines between our business and social lives, consumers are becoming increasingly more reliant on their mobile devices. In fact, 55% of consumers said they are interested in using an app to store their gift card information on their mobile phones, which is up from 51% in 2013. 58% of respondents said they would prefer to use one app to store multiple merchant cards rather than using separate apps for each merchant.
Mobile apps are mandatory to a successful gift card strategy.
2,414 respondents in 2014
Said they want to use one app to store gift cards from
Said they want to use separate apps
from each merchant
58% 18% 24%How would you prefer to store gift cards on your mobile device?
1,322 respondents in 2014
Are you interested in using a mobile app to store your gift card information?
Given the proven effectiveness of gift card programs and their proven ability to attract new customers, build brand awareness and drive incremental revenue driving incremental revenue, its no surprise that most merchants
have robust prepaid programs in place. In order to maximize the success of these programs, merchants must continue to innovate and evolve their efficacy to keep pace with consumer trends and new technologies.
The Time to Evolve Your Gift Card Strategy is Now
Take your gift card program to the next level.Contact an Advanced Marketing Solution
representative or visit firstdata.com.
Give us a call anytime-wed love to hear from you.
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5To receive a discount
28% To make additional purchases54%Loyalty/Rewards
35%Budgeting/ Money Management
24%Dont carry cash
Education is the key to increasing reload amount and frequency.
68% of respondents have never reloaded a gift card. Respondents reasons for reloading vary. Over 50% who reload make additional purchases using their gift card. Additional reasons include earning loyalty or rewards and to receiving a discount. Budgeting and money management continue to be strong reasons to reload as well
as the convenience of not having to carry cash.
1,190 respondents in 2014
Why do you reload?
Reloading is a BIG Opportunity
Incentives and Rewards Drive SalesIncentives, loyalty and rewards drive sales and 32% of respondents noted that even though they were not planning on
making a purchase at a particular store, they did so because of an incentive being offered. 40% of respondents said they ended up spending more than originally planned because of an incentive being offered. Respondents also noted
that on average they had purchased 2 cards in the past twelve months because of loyalty/rewards points being offered.
Which best describes the influence that incentives or rebates had on your decision to make a purchase, if any at all?
1,217 respondents in 2014
Over the Past 12 Months 1,190 respondents in 2014
Because loyalty/rewardpoints were offered
respondents 2.2purchased GIFTCARDS
32%Made a purchase because of an incentive
Spent more than planned when anincentive was offered
Incentive, loyalty and rewards increase sales and drive purchasing.https://twitter.com/FirstDatahttps://www.facebook.com/FirstDatahttps://www.linkedin.com/company/first-data-corporation