The 2016 Prepaid Consumer Insights Study - First Data
The future of gift cards 2016 PREPAID CONSUMER INSIGHTS STUDY
Explore the report Ć
3,650 3,650 2,341 2,3412016 R E RS E P SOPNODNE DN ET N STS
SCREENED SCREENED
Survey of 3,680 consumers, aged 18 and Survey of 3,650 consumers, upd 18 and aged d up.
2016 DATA USAGE
OCTOBER
OCTOBER
conducted Dataconducted from survey was weighted 2,341 consumers screened to have 2,341 consumers mer screened toSurvey have ha purchased orOctober 2016 Survey onducted October 2016. to correspond to census distributions purchased or received traditional/plastic received d traditional/plastic d l/ l c or o e-gift f closed l d loop l op D Data ffrom survey rve was weighted h d to correspond d to or e-gift closed loop giftgift cards within the the cards within th h past 12 months. he census distributions. past 12 months
The gift card as we know it is transforming into something bigger. Make no mistake, gifting of physical cards is as strong as ever. But buyers are adopting digital gift cards now more than ever, embracing the convenience of mobile apps and gift cards as the new currency. As busy consumers do more on their mobile devices, they are embracing mobile apps and reloadable gift cards as a new form of tender. Our 2016 Consumer Insights Study shows six major trends that are reshaping the industry and point to tremendous opportunity for retailers and financial organizations to engage with consumers in new and exciting ways. We also see three consumer groups driving gift card purchases, each with its own distinct patterns and motivation.
Six trends shaping the industry: Three’s company Ć
Keep spending Ć
Where it’s app Ć
Shift happens Ć
Treat yourself Ć
Make it personal Ć
1. #threescompany We found that three major consumer groups are driving gift card adoption and spending. Of these three ÔĬĈŇėį¬Ĉþ¼ŇśįĽà¼øĈįĽėàśįå¡ ñ þ°¼äÔåÏĽ¡ Ĭ°į ¡ĬĈįį ññŔ¼ĬĽå¡ ñį¬āĈþ¼įė¼þ°įĽà¼øĈįĽ ¡ĬĈįįĈĽà¡ Ĭ° ÏĈĬøÏ ¡ĽĈĬį¬ þ°Ĉþ¼ñ¼ °įĽà¼ŕ śåþāį¼ñÏäėŇĬ¡à įåþÔĈÏÔåÏĽ¡ Ĭ°įķþĈĽĽĈÔåŔ¼¬ŇĽĽĈŇį¼ÏĈĬĽà¼øį¼ñŔ¼įĝ
The Socializers
The MTV Generation
The Maturists
AGES 18-34
AGES 35-54
AGES 55+
Percent of respondents who
Are most likely to purchase gift cards
On average, spend the
purchased more gift cards in 2016
for self-use
most
%
21 % 34
%
40 % 44
PHYSICAL GIFT CARDS
E-GIFT CARDS
physical: 251, e-gift: 167
$75 $84
PHYSICAL GIFT CARDS
E-GIFT CARDS
physical: 405, e-gift: 259
Ą Value hunters Ą Convenience junkies Ą Love “authentic” experiences
E-GIFT CARDS
physical: 366, e-gift: 163
Ą Cautious Ą Self-sacrificing Ą Less digitally savvy
Ą Work to live Ą Researchers and skeptics Ą Brand loyalty
SELFPURCHASERS
ADOPTERS
PHYSICAL GIFT CARDS
SPENDERS
In addition to choice, your audience matters. Different age groups purchase differently. #threescompany
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2.#shifthappens The gift card market is shifting, but don’t toss your plastic cards. While consumers continue to embrace digital gift cards, physical gift cards aren’t going anywhere, with the the average number of physical cards purchased rising steadily in the last four years.
SURVEY QUESTION Approximately how many physical gift cards in total have you purchased in the last 12 months?
R E S U LT S
4.8
5.1
4.7
5.5
5.9
2012
2013
2014
2015
2016
576 respondents
1,089 respondents
1,420 respondents
1,052 respondents
1,022 respondents
The average number of physical gift cards purchased has risen for the last four years from 4.8 to 5.9.
%
72
%
51
OF RESPONDENTS
purchased or received physical gift cards.
OF RESPONDENTS
purchased or received digital gift cards.
People want choice, whether it’s the convenience of mobile gifting apps or finding that perfect gift card for Mom. #shifthappens
Share on social y
3. #keepspending Overspending the amount of a gift card is the new normal. 75% of consumers with gift cards in 2016 spent $27.74 more than the amount on the card, up from 69% last year.
SURVEY QUESTION In the last 12 months, when paying with your gift card, did you spend more than the value of the card?
R E S U LT S
%
75
%
69
2015
2016
1,144 respondents
1,117 respondents
Three-quarters of consumers with gift cards spend more than the value of the card.
Market to your consumers with the idea that they will overspend, with special deals, bundles, and the option for auto-reload. #keepspending
Share on social y
4. #treatyourself Self-purchase of gift cards is rapidly becoming the new tender type for many consumers. Driven by loyalty points, rewards, and discounts, more consumers are purchasing gift cards for their own use than in years past.
SURVEY QUESTION Did you purchase a physical or e-gift card for yourself?
R E S U LT S
%
9
%
53
GROWTH
Since 2014, self-purchase of physical cards has grown by 9%.
%
13
GROWTH
Sin Since in nce 2014 n nc 2014, self-purchase selff purchase chase as o of digital cards has grown by 13%.
2016 - EGIFT CARDS 589 respondents
More than M h h half lf off digital d l gift f card ard d purchasers h self-purchase. lf hase.
How are you packaging and marketing gift cards? Because they’re not just gifts anymore. They’re the new currency. #treatyourself
Share on social y
5. #whereitsapp In 2016, we’re seeing more consumers embracing mobile apps for storing their gift cards, for convenience and to keep from losing them.
PRIMARY QUESTION How interested are you in using an app to store gift card information on your mobile phone?
R E S U LT S
F U R T H E R R E S U LT S What are the main reasons you might want to store gift card information on your mobile phone?
%
37
%
50
RESPONDED
More convienent
%
37
RESPONDED
Don’t have to carry cards
2016 2,341 respondents
%
33
50% of consumers are interested in storing gift card information on an app.
RESPONDED
Less likely to lose the cards
People are ready for mobile gift card apps—as long as they’re secure. #whereitsapp
Share on social y
6. #makeitpersonal More than half of respondents are interested in receiving some kind of notification (email, text, push) about gift card balances and special offers.
SURVEY QUESTION How interested would you be in receiving electronic notifications (email, text messages, etc.) about balances or special offers from a merchant whose gift card you had stored in an app on your mobile phone?
R E S U LT S
%
80
%
85 5
%
67
18 TO 34
35 TO 54
55 AND UP
2,341 2 2, ,3 ,341 3 respondents po o
Across all ages a grou g groups, ups 78% are at least somewhat mew Interested in emailil or notifications offers. o text xtt notif n fications about balancess o or special offers
Personalized service is key to marketing success, and mobile gift card apps give you the platform to engage with customers and cardholders. #makeitpersonal
Share on social y
As the 2016 Consumer Insight Study shows, consumers, whether they are Socializers, the MTV Generation, or the Maturists, love the range of choices they have for gift cards—physical, digital, and mobile. Card purchasing goes beyond gifting, as more people self-purchase cards to use in place of cash or credit. Savvy gift card providers should embrace and promote the mobile gift card app, which offers the possibilities of auto-reload, convenient transactions, and personalized marketing and customer service.
Customers are ready.
Ready to evolve your gift card strategy? Contact a First Data representative or visit firstdata.com.
Contact
Careers
Privacy & Legal
Email
Call Us
Email us and we’ll get right back to you:
Give us a call anytime-we’d love to hear from you.
[email protected]
866-965-8330
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©2009-2016 First Data Corporation. All Rights Reserved. The FIRST DATA name, logo and related trademarks and service marks are owned by First Data Corporation and are registered or used in the U.S. and many foreign countries. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.
Explore the report Ć
3,650 3,650 2,341 2,3412016 R E RS E P SOPNODNE DN ET N STS
SCREENED SCREENED
Survey of 3,680 consumers, aged 18 and Survey of 3,650 consumers, upd 18 and aged d up.
2016 DATA USAGE
OCTOBER
OCTOBER
conducted Dataconducted from survey was weighted 2,341 consumers screened to have 2,341 consumers mer screened toSurvey have ha purchased orOctober 2016 Survey onducted October 2016. to correspond to census distributions purchased or received traditional/plastic received d traditional/plastic d l/ l c or o e-gift f closed l d loop l op D Data ffrom survey rve was weighted h d to correspond d to or e-gift closed loop giftgift cards within the the cards within th h past 12 months. he census distributions. past 12 months
The gift card as we know it is transforming into something bigger. Make no mistake, gifting of physical cards is as strong as ever. But buyers are adopting digital gift cards now more than ever, embracing the convenience of mobile apps and gift cards as the new currency. As busy consumers do more on their mobile devices, they are embracing mobile apps and reloadable gift cards as a new form of tender. Our 2016 Consumer Insights Study shows six major trends that are reshaping the industry and point to tremendous opportunity for retailers and financial organizations to engage with consumers in new and exciting ways. We also see three consumer groups driving gift card purchases, each with its own distinct patterns and motivation.
Six trends shaping the industry: Three’s company Ć
Keep spending Ć
Where it’s app Ć
Shift happens Ć
Treat yourself Ć
Make it personal Ć
1. #threescompany We found that three major consumer groups are driving gift card adoption and spending. Of these three ÔĬĈŇėį¬Ĉþ¼ŇśįĽà¼øĈįĽėàśįå¡ ñ þ°¼äÔåÏĽ¡ Ĭ°į ¡ĬĈįį ññŔ¼ĬĽå¡ ñį¬āĈþ¼įė¼þ°įĽà¼øĈįĽ ¡ĬĈįįĈĽà¡ Ĭ° ÏĈĬøÏ ¡ĽĈĬį¬ þ°Ĉþ¼ñ¼ °įĽà¼ŕ śåþāį¼ñÏäėŇĬ¡à įåþÔĈÏÔåÏĽ¡ Ĭ°įķþĈĽĽĈÔåŔ¼¬ŇĽĽĈŇį¼ÏĈĬĽà¼øį¼ñŔ¼įĝ
The Socializers
The MTV Generation
The Maturists
AGES 18-34
AGES 35-54
AGES 55+
Percent of respondents who
Are most likely to purchase gift cards
On average, spend the
purchased more gift cards in 2016
for self-use
most
%
21 % 34
%
40 % 44
PHYSICAL GIFT CARDS
E-GIFT CARDS
physical: 251, e-gift: 167
$75 $84
PHYSICAL GIFT CARDS
E-GIFT CARDS
physical: 405, e-gift: 259
Ą Value hunters Ą Convenience junkies Ą Love “authentic” experiences
E-GIFT CARDS
physical: 366, e-gift: 163
Ą Cautious Ą Self-sacrificing Ą Less digitally savvy
Ą Work to live Ą Researchers and skeptics Ą Brand loyalty
SELFPURCHASERS
ADOPTERS
PHYSICAL GIFT CARDS
SPENDERS
In addition to choice, your audience matters. Different age groups purchase differently. #threescompany
Share on social y
2.#shifthappens The gift card market is shifting, but don’t toss your plastic cards. While consumers continue to embrace digital gift cards, physical gift cards aren’t going anywhere, with the the average number of physical cards purchased rising steadily in the last four years.
SURVEY QUESTION Approximately how many physical gift cards in total have you purchased in the last 12 months?
R E S U LT S
4.8
5.1
4.7
5.5
5.9
2012
2013
2014
2015
2016
576 respondents
1,089 respondents
1,420 respondents
1,052 respondents
1,022 respondents
The average number of physical gift cards purchased has risen for the last four years from 4.8 to 5.9.
%
72
%
51
OF RESPONDENTS
purchased or received physical gift cards.
OF RESPONDENTS
purchased or received digital gift cards.
People want choice, whether it’s the convenience of mobile gifting apps or finding that perfect gift card for Mom. #shifthappens
Share on social y
3. #keepspending Overspending the amount of a gift card is the new normal. 75% of consumers with gift cards in 2016 spent $27.74 more than the amount on the card, up from 69% last year.
SURVEY QUESTION In the last 12 months, when paying with your gift card, did you spend more than the value of the card?
R E S U LT S
%
75
%
69
2015
2016
1,144 respondents
1,117 respondents
Three-quarters of consumers with gift cards spend more than the value of the card.
Market to your consumers with the idea that they will overspend, with special deals, bundles, and the option for auto-reload. #keepspending
Share on social y
4. #treatyourself Self-purchase of gift cards is rapidly becoming the new tender type for many consumers. Driven by loyalty points, rewards, and discounts, more consumers are purchasing gift cards for their own use than in years past.
SURVEY QUESTION Did you purchase a physical or e-gift card for yourself?
R E S U LT S
%
9
%
53
GROWTH
Since 2014, self-purchase of physical cards has grown by 9%.
%
13
GROWTH
Sin Since in nce 2014 n nc 2014, self-purchase selff purchase chase as o of digital cards has grown by 13%.
2016 - EGIFT CARDS 589 respondents
More than M h h half lf off digital d l gift f card ard d purchasers h self-purchase. lf hase.
How are you packaging and marketing gift cards? Because they’re not just gifts anymore. They’re the new currency. #treatyourself
Share on social y
5. #whereitsapp In 2016, we’re seeing more consumers embracing mobile apps for storing their gift cards, for convenience and to keep from losing them.
PRIMARY QUESTION How interested are you in using an app to store gift card information on your mobile phone?
R E S U LT S
F U R T H E R R E S U LT S What are the main reasons you might want to store gift card information on your mobile phone?
%
37
%
50
RESPONDED
More convienent
%
37
RESPONDED
Don’t have to carry cards
2016 2,341 respondents
%
33
50% of consumers are interested in storing gift card information on an app.
RESPONDED
Less likely to lose the cards
People are ready for mobile gift card apps—as long as they’re secure. #whereitsapp
Share on social y
6. #makeitpersonal More than half of respondents are interested in receiving some kind of notification (email, text, push) about gift card balances and special offers.
SURVEY QUESTION How interested would you be in receiving electronic notifications (email, text messages, etc.) about balances or special offers from a merchant whose gift card you had stored in an app on your mobile phone?
R E S U LT S
%
80
%
85 5
%
67
18 TO 34
35 TO 54
55 AND UP
2,341 2 2, ,3 ,341 3 respondents po o
Across all ages a grou g groups, ups 78% are at least somewhat mew Interested in emailil or notifications offers. o text xtt notif n fications about balancess o or special offers
Personalized service is key to marketing success, and mobile gift card apps give you the platform to engage with customers and cardholders. #makeitpersonal
Share on social y
As the 2016 Consumer Insight Study shows, consumers, whether they are Socializers, the MTV Generation, or the Maturists, love the range of choices they have for gift cards—physical, digital, and mobile. Card purchasing goes beyond gifting, as more people self-purchase cards to use in place of cash or credit. Savvy gift card providers should embrace and promote the mobile gift card app, which offers the possibilities of auto-reload, convenient transactions, and personalized marketing and customer service.
Customers are ready.
Ready to evolve your gift card strategy? Contact a First Data representative or visit firstdata.com.
Contact
Careers
Privacy & Legal
Call Us
Email us and we’ll get right back to you:
Give us a call anytime-we’d love to hear from you.
[email protected]
866-965-8330
Follow First Data:
©2009-2016 First Data Corporation. All Rights Reserved. The FIRST DATA name, logo and related trademarks and service marks are owned by First Data Corporation and are registered or used in the U.S. and many foreign countries. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.
