The Retail Gift Card Association reveals shoppers' top gift card choices for loved ones, preferences for buying and receiving the cards, and more with biannual consumer survey
Most shoppers will be giving gift cards this holiday season, and consumers still love to receive the cards since they allow them to purchase what they'd like. According to new consumer research from the Retail Gift Card Association (RGCA), shoppers consider gift cards safe, versatile gifts for everyone on their shopping lists, and understanding of e-gift cards is growing quickly among U.S. consumers.
The Association surveyed more than 1,000 U.S. consumers on their use of gift cards and preferences for giving and spending the cards. The survey also explored shoppers' willingness to embrace new gifting options like electronic gift cards (e-gift cards), which are purchased online or on a mobile phone and are redeemed using a virtual code instead of a physical card, and mobile wallets, which are payments made from mobile smart phones or tablets instead of credit/debit cards, cash, physical gift cards, or other forms of payment.
RGCA's key findings include:
Gift cards will be popular holiday gift choices: 70% of consumers plan to give at least one gift card this holiday season, and nearly half (49%) plan to give more than two gift cards.
Alternative payments options are growing in awareness: 75% of shoppers have now heard of e-gift cards whereas only 42% of shoppers had heard of them just six months ago. The top situations when consumers choose e-gift cards over physical cards are: when they need them to be delivered right away; when buying for younger people who live a digital lifestyle; or when shoppers want to avoid holiday crowds. Additionally, 90% of respondents do not yet use a mobile wallet, but more than half would be interested in receiving an e-gift card that was deposited directly into their mobile wallet or giving e-gift cards to others that could be deposited directly into their mobile wallets.
Gift cards are always in demand and good for business: Most (76%) consumers don't require a sale or promotion to purchase a gift card. 61% of shoppers who purchase gift cards also do some shopping for themselves at the same time, and of this group 72% spend more than $25 in addition to the gift card.
Consumers value safe shopping flexibility: The number one reason shoppers like to give or receive gift cards is that they allow the end users to purchase what they want. Also of note, 92% of shoppers know gift cards are safe to give.
Gift givers choose different gift cards based on recipient: This season, spa or leisure gift cards will be most popular for significant others, coffee shop gift cards are favored for colleagues or friends, restaurant gift cards are most popular for parents or extended family, department store gift cards are most popular for children, and entertainment gift cards are preferred for extended family or friends.
Physical gift cards still reign supreme: Most shoppers still prefer to give physical gift cards, and the most common denomination is between $25 and $50.
"Gift cards provide shoppers with safe, convenient, and versatile gift choices, so we are not surprised to find that most shoppers will be buying them again this holiday season," said Mary Donovan, Executive Director of the RGCA. "In an age when payments technology continues to evolve quickly, we expect e-gift cards to continue to rise in popularity and we forecast that consumers will soon demand that gift cards be compatible with mobile wallets as well."
The RGCA consumer gift card study was conducted via online survey in November 2014 with more than 1,000 adult respondents. The sample was representative of the adult U.S. population in terms of education, income and gender.
