2014 Prepaid Consumer Insights Study

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    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%

    $20.79Overspend2012:

    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

    USAGESEPTEMBERRESPONDENTSRESPONDENTS

    DATA20142,3713,724

    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

    Other

    49%45%

    20142013

    44%51%

    20142013

    34%26%

    20142013

    25%21%

    20142013

    13%8%

    20142013

    13%2014

    9%8%

    20142013

    8%20144%2013

    Reinforce brand messaging

    Drive more foot traffic back in store

    Offer targeted rewards Drive more sales

    through incentives, loyalty and rewards

    programs

    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

    Physical Cards

    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

    Virtual/e-gift Cards

    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

    multiple merchants

    No preference

    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?

    55%Said Yes

    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.

    Call Us

    Give us a call anytime-wed love to hear from you.

    866-965-8330

    2014 First Data Corporation.All rights reserved. Follow First Data:

    Email

    Email us and well get right back to you:

    advancedmarketing@firstdata.com

    5To receive a discount

    28% To make additional purchases54%Loyalty/Rewards

    35%Budgeting/ Money Management

    24%Dont carry cash

    26%

    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

    25loyaltypoints

    On average,

    respondents 2.2purchased GIFTCARDS

    32%Made a purchase because of an incentive

    Spent more than planned when anincentive was offered

    40%

    4

    Incentive, loyalty and rewards increase sales and drive purchasing.

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