Online Gift Card Purchases on the Rise
Consumers are more often moving online to buy gift cards where retailers are offering incentives and other improved experiences.
Some 68% of online shoppers reported that buying gift cards online that can then be e-mailed to a recipient is more convenient than having plastic cards shipped to recipient, according to a new survey sponsored by CashStar, Inc.
Eight-percent indicated that they would purchase a gift card from a preferred store or restaurant if they offered the cards on their Web sites.
Personalization is in high demand. Eight-five percent of respondents said the ability to personalize the cards is important and so is the ability to send the cards via e-mail. Attaching an incentive to the offer is a big draw with 88% of online shoppers indicating that would make a purchase more likely. For example, send a $50 gift card and the purchaser gets a $10 gift card, Cashstar found.
“Delivering compelling offers and incentives is much easier in the digital marketplace for retailers, as fulfillment is much less expensive and is immediate,” CashStar CEO David Stone said in a release. “And savvy retailers understand the benefit of offering a $10 incentive card to drive traffic to the store or site, where the consumer typically spends 60 percent more than the card’s face value.”
The survey also found:
- Respondents print the following at home: coupons (70%), boarding passes (48%), concert/movie tickets (30%) and gift cards (14%).
- More than half (56%) of respondents said they are more likely to purchase online gift cards because they are better for the environment than petroleum-based plastic cards.
- A third of consumers plan to do more of their holiday shopping online than they did in 2008 and 40% plan to give gift cards (of that number, 70% plan to give between two and five gift cards this year).
- Siblings and friends top gift card recipient list, while restaurants top gift card category. General retail and consumer electronics were close behind with 56% and 35% respectively.
