2014 Prepaid Consumer Insights Survey reveals that gift cards can actual hold the power to drive incremental sales for retailers, and the better news is that gift card sales are on the rise, with an 8% boost in sales between 2013 and 2014.
Incremental Sales Driver Gift cards drive incremental sales when consumers purchase past the value of the gift card. According to the FirstData study, in 2014 consumer spent an average of $23.41 over the amount of their gift card, up about $3 from 2013. As this consistent consumer behavior takes root, retailers can use gift card purchasing numbers to forecast this unique source of incremental revenue. The additional spending also represents the opportunity to gain new consumers and build a relationship with shoppers who wouldn't have otherwise entered the store. Using gift cards as a customer acquisition tool can help increase incremental revenue numbers that stem from gift cards and gifting.
Gift Card Popularity on the Rise Gift cards have long been a popular gift choice for those picky recipients and continue to offer consumers a safe gifting option that is easier on both the sender and receiver.
81% of consumers plan to spend the same or more in plastic gift cards, with
84% of consumers planning to purchase the same or more in e-gift cards. These strong numbers indicate a real opportunity for retailers to take advantage of the incremental revenue from extended spending on top of the value of gift cards. The flexibility of gift cards provides a desired convenience for consumers as well as a revenue opportunity for retailers. We want to know what gift cards do for your business? Leave us a comment.