![]() dollars per device on gift cards while Kohl’s saw an average of $36 spend on gift vouchers per device. JCPenney saw an average of nearly 40 U.S. In 2021, consumers spend a considerable amount on gift cards from major retailers like JCPenney and Kohls. Once the COVID-19 pandemic eased its hold on in-person shopping, consumers followed suit and began returning to department stores and malls across the globe. And, about 37% of all gift card purchasers were Millennials! Post-pandemic gift card sales consumers bought a gift card on social media channels. In 2020, with stay-at-home orders of the pandemic fueling a rise in e-commerce and social commerce, almost half of U.S. The gift card buyer persona is no longer reserved for aunts, uncles, or grandmothers unsure of what to give their family members. For e-commerce brands, that’s a hefty amount of customers that could be looking for a digital or physical gift card to purchase. A study by Statista found that 35% of consumers would be happy to receive a gift card as a holiday present. Gift cards can’t hold a candle to a new car with a huge red ribbon on top, but they certainly top many consumers’ holiday wish lists. The gift card market: In stats Who wants gift cards ? Why? Because gift cards embody everything that appeals to a community focused on seamless and speedy experiences. Where gift cards were once a sign of lack of thoughtfulness or reserved for last-minute attempts at an easy gift, they are now one of the most popular gift categories that recipients are asking for. Instead, gift cards are on the rise in the e-commerce space, allowing consumers can send gift cards directly to a friend or family member without ever having to leave the house. To this day, gift cards are implemented by some of the largest department stores and retailers – the likes of Lowe’s, Macy’s, Target, and more.Īnd in 2022, the hot commodity is no longer reserved for the aisles of convenience stores or retail checkout counters. With the launch of the plastic card as a more secure form of payment, major retailers hopped on board the gift card train. Plus, they were much harder to duplicate. These thin, plastic cards held no value unless they were activated safely and securely by a store clerk at checkout. In 1994, Blockbuster created and showcased the first plastic gift certificates (aka gift cards). Plus, with a lack of substantial technology in place for tracking, retailers were left scrambling to catch and fight fraud.Įnter DVD rental company, Blockbuster. With access to a color copier and printer, almost anyone could easily duplicate a certificate and present it at a store. Yet due to their paper form, gift certificates were quite easy to forge. Perhaps the most memorable gift certificates were those clever booklets showcasing the ‘golden arches.’ One of the largest gift certificates push was a 1970s McDonald’s holiday program: A brief history of gift cardsīefore there were gift cards, major retailers were using ‘gift certificates.’ These were essentially branded pieces of paper that acted as a cash equivalent within a specific store. Think of a Starbucks gift card that can be used over and over vs. Once a gift card is out of funds, it can either be reloaded and used again until the expiration date or discarded after a one-time use. Similar to credit or debit cards, gift cards can be used either physically or digitally, with the information provided at an online checkout or presented at a cashier. How do gift cards work ?Ī gift card is a form of payment where a pre-determined amount of funding is available to purchase at a specific retailer. With a simple gift card program, digital retailers can open the floodgates to an entirely new channel of revenue not just over the holiday season, but year-round. While plenty of brands are strategizing the holiday craze with new products or discounts on popular items, gift cards tend to fall by the wayside (if they’re used at all). Interestingly enough, gift cards aren’t utilized nearly as much as they could be by many merchants in the e-commerce space. ![]() In 2022, over half of US consumers said they were likely to purchase gift cards as a present during the holiday season. And one gift that has held through thick and thin? The small (yet mighty) gift card. Whether you’re the founder of a digitally-native brand or an active e-commerce consumer, the season of giving is here.
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