Study On Digital Gift Cards Tracks Attitude, Offers Guidance for Retailers
Millennials Category Lead the Charge in This New Category –
29% Have Purchased or Received a Digital Gift Card
LOUISVILLE, KY [Tuesday, November 24 2015] – A consumer report released today by Stored Value Solutions (SVS), a global provider of gift cards and stored value services, focuses on consumer acceptance of mobile and digital gift cards. Overall the study, “Digital Gift Card Consumer Sentiment Study” found that while physical gift card purchases and receipts are still preferred over digital, both awareness and actual use of digital gifts is growing, with male shoppers leading the way. The research also suggests that adoption can be accelerated by making users, both givers and receivers, comfortable with the form factor. The study provides some step-by-step guidance for retailers to enhance adoption. SVS has been tracking gift card spending data for nearly a decade, and regularly generates proprietary reports that break down gift card spending growth by category and dollar value, in addition to seasonal surveys tracking consumer sentiment on gift card use.
Results of this survey indicated that one in three males prefer to buy digital cards, and nearly 40 percent of consumers aged 18 to 35 expressed a preference for digital cards. 64 percent of consumers surveyed had not yet bought or received a digital or mobile gift card, although Millennials numbered 29 percent of the survey population who had done so.
Analysis from this study on digital and mobile adoption reflected how people are actually shopping, and how they are feeling about switching from physical to (virtual) digital cards. It identified a geographic aspect to consumer preferences, with physical gift cards being the preferred mode for face-to-face exchanges and digital cards becoming more popular and socially acceptable when gift giving cannot be done in person.
Jenny Parris, Head of Global Marketing and Product at SVS and study author, noted, “One of the less intuitive findings from this research is that there was a modest increase in comfort level over redeeming cards via mobile. And as might be guessed, there was a spike in digital adoption among younger consumers, as well as males. Most importantly, however, there are many steps retailers can take right now, to speed consumer migration to digital and mobile formats.”
Mark Schatz, SVS President , added, “In underwriting this study, one goal was to gain clear snapshots of consumer sentiment through all facets of redemption Based on actual redemptions, we saw , in aggregate, a slow, but steady increase in digital use. Beyond the raw statistics, the study gave us a much clearer view into the drivers of digital adoption and usage.”
To request a pdf of the full study, please email Meir Kahtan Public Relations, at firstname.lastname@example.org.
The data for this study comes from a survey that was fielded March 16-18, 2015 among 1,000 representative consumers ages 18-65. The survey was conducted for Stored Value Solutions by Trifecta Research.
Stored Value Solutions (SVS) is a global provider of gift card and stored value services, with nearly two decades of industry experience and a team of 300+ professionals. A pioneer in the market, SVS is committed to measurably increasing client sales through data-derived insights, using such stored value products and services as retail gift cards, promotional cards, consumer engagement strategies, mobile interactivity and eCommerce solutions. Please visit SVS online at www.storedvalue.com.
About the Author
Jenny Parris is the head of global marketing and product at Stored Value Solutions (SVS).
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