Payments News: Chase Paymentech Announces Gift Card Study Results - November 13, 2008
Chase Paymentech Announces Gift Card Study Results
Chase Paymentech has announced the results of a survey commissioned to provide insight into consumers’ attitudes towards gift cards. "The study, which polled 850 American adults, found that gift card awareness and usage remains very high, with nine in ten respondents having received or purchased a gift card. Additionally, two-thirds of respondents have bought at least one gift card within the past 12 months."
Just as impressive, the data also shows that most adults (55 percent) plan to buy the same number of cards as they did last year, and 21 percent plan to buy more. Similar estimates show shoppers plan to load either the same amount (55 percent) or more (21 percent) funds on those cards. All things considered, the study suggests retailers with gift cards to be well positioned during what is anticipated to be a slow holiday season.
“Gift cards are an interesting opportunity for retailers,” said George Wilcox, Group Executive, Chase Paymentech. “What our research indicates is that gift cards may prove to be a bright point in a retail season that’s going to face its own share of challenges.”
Additional results provided by this study include:“One of the more compelling aspects of this study,” said Wilcox, “is that gift card buyers plan well ahead of time to purchase a gift card.”
- Typically, consumers spent more than the amount of the gift card when they are redeemed, with 85 percent adding an average of $17.70 out of their own wallets.
- Gift card buyers who purchased a gift card within the past 12 months bought 4.7 cards for others, in addition to two cards for themselves. This may indicate that gift cards are being used as potential budgeting tools.
- 82 percent of users said that a discount for the purchaser's use when buying the gift card would make them somewhat or much more likely to purchase gift cards. Free specialized gift packaging for cards is a strong purchase motivator as well (61 percent).
Retailers need to answer this enthusiasm with visible and accommodating gift card displays.
More than one-third of past year gift card purchasers (37 percent) have entered a store intending to buy a gift card and left without buying it because:Retailers who are aware of gift card popularity, and make gift card purchases easy for consumers, are more likely to capture those sales. “During a down holiday season, where each sale is increasingly important, gift card purchases will be crucial,” said Wilcox.
- They couldn’t find the gift card display (21 percent)
- They didn’t care for any of the designs (21 percent)
- They changed their mind and decided on another item (20 percent)
- The cards were locked behind the counter (15 percent)
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