First Data’s 2017 Prepaid Consumer Insights Study Underscores Value of Gift Cards
November 08 2017 - 11:00AM
Business Wire
Study finds that 75% of consumers overspend the
amount on their gift card by an average of $38
Results show 44% of consumers visit a store
they would not have otherwise gone to because of a gift card
The average consumer spent $38 more than the value on their gift
card, up $10 from 2016, according to the 2017 Prepaid Consumer
Insights Study released by First Data (NYSE: FDC) today. The study,
which is based on the responses of more than 2,000 U.S. consumers,
also found that 44% of consumers visit a store they would not have
visited otherwise because of a gift card, and 53% are likely to
visit a store more often as the result of receiving one.
“There is a tremendous opportunity for businesses to drive sales
and build brand loyalty by implementing gift card strategies and
solutions,” said Dom Morea, Senior Vice President, Head of Gift
Solutions at First Data. “From employee rewards and customer
service programs to social media promotions and marketing
campaigns, gift cards are their own form of currency, offering
convenient solutions for gift card purchasers and receivers
alike.”
Physical Cards Still Reign Supreme, While Digital Cards Play
Catch Up
First Data’s 2017 Prepaid Consumer Insights Study found that
consumers purchased an average of 6.5 physical gift cards on an
annual basis, steadily climbing from 5.9 in 2016, 5.5 in 2015, and
4.7 in 2014. While physical gift cards still dominate, the research
showed that digital gift card popularity is on the rise. In the
three prior years, the average number of digital gift cards
purchased stayed at approximately 4.0 per consumer. This year, that
number surged, and consumers purchased an average of 6.1 digital
gift cards per person.
One trend worth watching is mobile gift card apps. This year,
among all consumers who were aware of mobile gift card apps, 52%
had used one, and millennials outpaced total respondents with 65%
having used an app to purchase a gift card.
Consumers Prefer Shopping for Gift Cards at Gift Card
“Malls”
The study also identified where consumers purchase gift cards.
This year, nearly half – 47% – of consumers purchased a gift card
at a gift card “mall” (i.e., places that sell many different types
of gift cards for a number of different stores), surpassing
purchases made in a physical retail stores for the first time
(44%).
Generations Agree on Gift Card Incentives
Across all ages, 42% of respondents said their preferred
incentive for purchasing a gift card was a discount dollar amount.
With value top of mind, the next preferred incentive was a bonus
gift card with the purchase of card (31%), followed by a free item
with purchase (12%), and then a bonus amount added to the card
(8%).
For more information about how businesses can drive sales, bring
in new customers, and extend their reach using gift solutions,
please visit www.giftsolutions.com.
For additional information about the 2017 Prepaid Consumer
Insights Study, please see the dedicated page on First Data’s
website.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling
technology, serving approximately six million business locations
and 4,000 financial institutions in more than 100 countries around
the world. The company’s 24,000 owner-associates are dedicated to
helping companies, from start-ups to the world’s largest
corporations, conduct commerce every day by securing and processing
more than 2,800 transactions per second and $2.2 trillion per
year.
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