digital gift in north america & europe: presentation to ukgcva data-driven insights that empower...

Digital Gift in North America & Europe: Presentation to UKGCVA

Data-driven insights that empower business

What we will talk about today

• Some general gift card research (UK Based)

• What consumers in 5 countries think of eGift- Experiences- Satisfaction- Reasons why they have not purchased

• UK retail gift cards consumers would like to receive for Christmas

Digital Gift in North America & Europe

Consumer Gift Card Data

Study Methodology

• Consumer surveys undertaken in September 2013:- United States- Canada- United Kingdom- France- Germany

• 4,800 respondents – 1,015 in the UK

• Low purchase levels of eGift in the UK, France & Germany - less than 15% total across the three countries.

• Higher purchase rates in Canada and the US – 10%+ in each

Digital Gift in North America & Europe

General: Where are people likely to purchase

  Unlikely Neutral Likely

The store associated with the card 4.5% 16.4% 79.0%

Grocery stores 30.0% 26.1% 43.8%

Pharmacies 54.1% 25.4% 20.5%

Newsstands/Convenience stores 55.7% 26.4% 17.8%

Petrol stations 62.4% 21.8% 15.8%

Digital Gift in North America & Europe

General Gift cards increase frequency of store visits

Digital Gift in North America & Europe

Strongly disagree Somewhat disagree Neither Agree nor Disagree

Somewhat Agree Strongly Agree

4.1%

7.9%

28.2%

39.2%

20.5%

Gift cards I receive increase how often I visit the store as-sociated with the card

General: What about interest in Open Loop?

Digital Gift in North America & Europe

Strongly disagree Somewhat disagree Neither agree nor disagree

Somewhat agree Strongly agree

3.0%5.8%

24.9%

37.9%

28.5%

I would rather purchase an open loop gift than closed loop

eGift Conclusions

• High levels of satisfaction for both buyers and receivers

• Trust in the product financially but…

• …nervousness about eGifts technologically

• Personalisation is absolutely crucial to selling these products

• A huge predominance (20:1) of computer-based over mobile phone-based

Digital Gift in North America & Europe

eGift: Where are consumers?

Digital Gift in North America & Europe

Purchase satisfaction experience is very high

Dissatisfied Neutral Satisfied0

10

20

30

40

50

60

70

80

90

100

5.99.9

84.2

5.49.0

85.6

4.3

14.6

81.1

7.1

15.4

77.5

15.6 13.6

70.8

Satisfaction with eGift Card Purchase

Canada US UK France Germany

Percentage

Digital Gift in North America & Europe

Purchase Satisfaction Experience - UK

Very dissatisfied

Somewhat dissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfied

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2.3 2.0

14.6

32.9

48.1

UK - Satisfaction with Purchase

Perc

enta

ge

Digital Gift in North America & Europe

Promoters

Satisfaction with usage was also high

Dissatisfied Neutral Satisfied0

10

20

30

40

50

60

70

80

90

100

4.5 5.2

90.3

5.1 3.8

91.1

5.0 5.2

89.8

7.94.2

87.9

14.1

5.2

80.7

Satisfaction with USING eGift card

Canada US UK France Germany

Percentage

Digital Gift in North America & Europe

Usage satisfaction - UK

Very dissatisfied

Somewhat dissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfied

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2.8 2.2 5.2

21.6

68.2

Usage Satisfaction - UK

Perc

enta

ge

Digital Gift in North America & Europe

Promoters

The Power of Promoters

Due to the expense and the fragmented nature of traditional 

communications channels, +WOM is essential!

• Consumers, influence each other – by talking to each other or observing.

• Closer relationships the more likely to talk about experience.

Digital Gift in North America & Europe

Email is the dominant delivery mechanism

Email Mobile Phone Social Media0

10

20

30

40

50

60

70

80

90

100 95.1

.74.2

95.1

2.0 2.8

95.2

3.3 1.5

93.9

4.61.5

97.1

2.4 0.4

Receipt of eGift was via…

Canada US UK France Germany

Percentage

Digital Gift in North America & Europe

UK: Interest in using mobile phone

Not at all in-terested

Not Interested Neither interested or disinterested

Slightly interested Very interested0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%31.33%

17.33%

23.17%

20.0%

8.17%

UK: Interest in sending and receiving gift vouchers on a mobile phone

Online redemption dominant

Online In-store Not used0

10

20

30

40

50

60

70

80

90

100

79.0

14.7

6.3

76.1

19.8

4.0

86.0

10.43.6

75.6

20.3

4.1

78.0

16.7

5.3

eGift Redeemed

Canada US UK France Germany

Percentage

Digital Gift in North America & Europe

So how do we…

Digital Gift in North America & Europe

Technology Adoption Model - Roadmap

Re-useAwareness TrialAvailability

Where can I actually buy these products?

What are they and what do they actually do?

Is it useful to me?

How easy is it for me to use?

Can I really trust it?

It’s so good I use it all the time. And I tell everybody.(who cares to listen)

Digital Gift in North America & Europe

It’s not awareness of what they are and how they work…

Canada US UK France Germany0

10

20

30

40

50

60

70 67.1 65.9

57.5

43.3

58.7

19.422.7

28.1

34.2

25.0

13.5 11.414.4

22.5

16.3

Why No Purchase?Do Not Understand How eGifts Work

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

The crucial step here is trial

Trial

Intention to Use

Ease of Use

Trust

Usefulness

Digital Gift in North America & Europe

Safety is an issue – more so in Europe

Canada US UK France Germany0

10

20

30

40

50

60

70 65.6

60.3

53.5

36.3

45.0

23.9

33.037.0 35.3

28.7

10.56.7

9.5

28.426.3

Why No Purchase?eGifts are Not Safe

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

What concerns people is technology…

Canada US UK France Germany0

10

20

30

40

50

60

32.837.5 37.0

30.5

43.7

25.421.6

29.5 28.925.0

41.8 40.9

33.5

40.6

31.3

Why No Purchase?Afraid eGift will Not Work at Check-out (Physical or Virtual)

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

…including recipients losing the eGift

Canada US UK France Germany0

10

20

30

40

50

60

35.840.9

31.534.2

42.4

19.4 19.3

30.8 28.9

37.5

44.839.8 37.7 36.9

20.1

Why No Purchase?Afraid eGift will get Lost on Recient's Phone or Computer

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

…and that the gift being delivered to the wrong person

Canada US UK France Germany0

10

20

30

40

50

6050.7 48.8

43.137.9 40.1

26.9 25.0

34.2

26.2

33.6

22.426.2

22.7

35.9

26.3

Why No Purchase?Afraid eGift will be Delivered to Wrong Person

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

Personalisation is another concern

Canada US UK France Germany0

10

20

30

40

50

60

26.9

44.3

28.8

21.4

32.5

17.9 19.3

31.5 31.6 31.3

55.2

36.439.7

47.0

36.2

Why No Purchase?eGift Not Personal Enough

Disagree Neutral Agree

Percentage

Digital Gift in North America & Europe

And finally…

Digital Gift in North America & Europe

ASDA

Waterstones

Next

Debenhams

John Lewis

Tesco

Boots

Argos

M&S

Amazon

0% 10% 20% 30% 40% 50% 60% 70%

13%

14%

17%

18%

18%

18%

27%

28%

29%

58%

Retailers UK consumers would most like to receive a gift card from for Christmas 2013 – Top 10

N:815: Consumers  could chose  up to 5 retailers  they would like to receive a gift card from for Christmas

Questions

Email:

neil.brennan@yourgx.com