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BizReport : Ecommerce archives : December 04, 2018

Study: Gift card use increases consumer spending

Merchants and marketers might want to offer more in the way of gift cards. That is one takeaway from new data which indicates that consumers, on average, are spending $59 over the gift card amount when shopping with a gift card.

by Kristina Knight

That spend increase is up $21 from the 2017 survey.

The new data is part of First Data's 18th Prepaid Consumer Insights Study. In addition to the spending find, researchers have concluded that shoppers are gifting gift cards for just over half (55%) of their annual gift-spending, and that about one-third (33%) spend more on gift cards than they would on physical gifts for others. That would include birthdays, anniversaries, and the holidays.

"Business owners continue to have a tremendous opportunity to drive sales, build their brand, and increase customer loyalty by investing in a robust gift card program," said Dom Morea, Senior Vice President, Head of Gift Solutions at First Data. "Our study shows that gift cards, or branded currency, are not only a potential growth engine for businesses, but are becoming the preferred gift for both purchasers and receivers alike."

More findings from the report include:

▪ 47% of those between ages 18 and 23 prefer physical gift cards over other gift card formats
▪ 64% buy gift cards for their personal use throughout the year
▪ In 2017, consumers bought 12 gift cards on average; in 2018, they are expected to buy 14
▪ 33% will reload gift cards after the initial use

More data from the Prepaid Consumer Insights Study can be accessed here.

Tags: consumer spending, ecommerce, First Data, gift card spending, loyalty marketing, m:commerce, mobile marketing

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