It is that time of year: GIFT CARD season
If your business currently has a gift card program- remember to place your holiday card orders NOW. If you are considering a gift card program; you should order your cards NOW. As we get closer to the Silly Season, the line gets longer for ordering gift cards. Here is a great artcle from Member Access Pacific (with a few tweaks). Enjoy and happy giving!!
Today’s consumers are turning their growing appreciation for gift cards into an all-out public embrace.
According to the recent U.S. Prepaid Consumer Insights Study, the average amount spent per card grew by more than 23 percent compared to 2010. The average total amount consumers spent on gift cards increased to $211 from $161 last year. While consumers continue to open their wallets and spend more on gift cards, it’s crucial for businesses to consider their products and services and consider whether they are good candidated for a gift card program. Business owners need to consider that gift cards are highly valued by receivers. For more than half of gift card recipients, a gift card valued at $25 is nearly equal in value to a gift valued at $50. Gift cards benefit the recipient by allowing them to select a gift of their own choosing as well as treat themselves by purchasing an item they did not plan to purchase with their own money. Overall, more consumers (47%) are interested in receiving a gift card than in actually sending one (22%), indicating an opportunity for business owners to really find their niche in the gift card world. The Prepaid Consumer Insights study analyzed results by five distinct consumer segments:
- “Budget Tamers”
- “Card Enthusiasts”
- “Helpful Husbands”
- “Convenience Shoppers”
- “Last Resort Consumers”
The study compared characteristics and opportunities associated with these 5 different types of gift card purchasers.
The average spent per gift card increased by over 23 percent from last year, with consumers spending on average $34 per card in 2010 and $42 in 2011. Budget Tamers, on average, purchased the most cards (6.7) while spending the highest average amount ($79), compared to consumers in the Last Resort segment, who purchased the least amount of cards (3.3), and Convenience Shopper, who spent the lowest average amount on cards ($47). Gas stations or convenience stores received the highest amount of total dollars spent (82%) by Budget Tamers, but the least amount from the other consumer segments. This is largely in part due to the fact that today’s economic challenges
have consumers trying to stretch their dollars; a common characteristic of the Budget Tamer.
Overall, gift card buyers are an extremely diverse group in their attitudes and behaviors toward different types of cards, the number of cards they purchase, preferred purchase locations and affinity for gift cards. Evaluating your business and considering the appeal your Gift Card program can have in the upcoming buying season, can have a real positive impact on your bottom line!
To learn more about our Gift Card Programs, email our team! GIFT CARD INFO