Gift Cards: Why They Are Rapidly Penetrating In Consumer Markets?
January last year, sales statistics help us acknowledge the gift card penetration in the consumer market. According to this report, an average adult received 3.2 gift cards last year and this trend is expected to grow this year. Gift cards are more popular than conventional gifts because they allow more flexibility. Consumers love to receive and present gift cards, they are easy and available all the year.
According to another survey done on gift cards:
• More than 80% of adults receive at least one gift card in 2014.
• 33% received one Gift Card To Bitcoin their favorite coffee shop.
• 14% received a gift card in retail shopping store.
• 10% received a gift card that could be redeemed at various shopping stores.
• Remaining 10% received a gift card to a salon or spa and internet site for gaming etc.
Why gift cards? We all know that they are available in multiple options and prices such as from $32 to $ 78 for an American Express card. Other gift cards which were offered by different banks may have different card options available. It is also observed that people tend to buy gift cards offered by their favorite retail or shopping store.
People tend to buy these gift cards because they are often offered by their favorite clothing brand. To get a free gift card, they tend to shop full price and get reward points or gift cards. Moreover, they use their gift cards to buy items with the full price which bring revenue hikes.
Gift Cards For Retailers
- Retailers also benefit when consumers redeem their purchased gift card. To be honest, these gift cards can be their best bet as they provide them the best marketing strategy that actually works.
- Customers with gift cards tend to make more visit to the store than customers with no gift card. Moreover, the customer redeems their gift card and often buy products with big prices, another way to collect more revenue.
- Many retail stores used these gift cards to launch their new products and services. They often use the gift card for this purpose, this will not only provide them a cheap way to market their new product, but also help them in observing the market trend.
- This will help them in improving their product as well as help them in modifying it, according to consumer needs.
Consumers also expressed an interest in receiving gift cards, that is pushing gift card companies to bring innovation in their services. Some studies show that teens and young lot enjoy shopping on their own and they prefer receiving gift cards, many companies are utilizing this particular fact.
Not only on vacation season, but in general gift cards have a big reason to stay and more innovation is expected to be seen in this industry.