According to a new consumer research from Retail Giftcard Association, american shoppers really love giving and receiving gift cards, they are always in demand and therefore offering significant incremental sales opportunities to store owners.
More than 2,100 consumers are involved in a survey conducted by the association, the survey was focusing on how consumers use their gift cards, like for giving and spending cards and if they are ready to welcome new gifting options as electronic codes which are digital cards and can be purchased online or by using a mobile application.You can find a full details of the consunmers’s response in this infographic.
Here are some of main points from RGCA’S finding:
- Gift cards are widely used, 77% of shoppers have given a gift card in the previous year and 90% have gotten no less than one in the previous year.
- Gift cards are always required by customers, most customers don’t ask for discount to purchase a gift card
- Consumers prioritize choice, the most important reason shoppers like to give or receive gift cards is that it allows recipient to purchase whatever they want.
- Consumers understand when using gift cards, up to 74% of customers wait for a sale or promotion campaign to spend their gift card balance.
- Gift cars are convenient for gift group, 65% of shoppers prefer to use gift card when they want to giving gift from a group.
- E-code and mobile gift is increasing, there are 54% of shoppers have not heard of mobile gift or electronic gift codes and only 17% feel very comfortable using them however 62% of consumers who choose e-code/mobile gift card told that they do so right away when they need it.
- More benefits for retailers, Gift card get customers to spend more, up to 72% do some shopping for themselves while purchasing a gift card, gift card also increase sales during redemption, there are 45% of shoppers will spend more than their gift card balance when they redeem.
As Mary Donovan, Executive Director of the RGCA said that: “Convenience and choice make gift cards extremely popular among consumers. Although mobile gift cards and e-codes are not widely used by consumers, we anticipate that the adoption of these technologies will continue to rise into the future,From a business perspective, we are pleased to see the degree to which gift card sales deliver benefits to retailers: consumers report spending more when both purchasing and redeeming gift cards.”
From all of above if you are running a online store, especially magento store don’t wait anymore to install a gift card extension now.