Commentary

Gift Cards With Incentive Peak Purchase

According to the 2009 Pre-Holiday Online Shopper Gift Card Survey by CashStar, Inc., the vast majority of all gift cards used to be purchased in person, in stores, and were made of plastic. Now, more consumers buy gift cards online as retailers offer improved online gift card experiences.

The survey data found that that 68% of online shoppers agree that buying a gift card online that can be sent via e-mail is more convenient than having plastic cards shipped to the gift card recipient. And 80% of online shoppers said that if their favorite store or restaurant offered a personalized online gift card on their website, they would be more likely to purchase it from that retailer.

Likelihood to Purchase Personalized Giftcard if Offered Online

Likelihood

% of Respondents

Definitely Would Purchase

13%

More Likely to Purchase

24

Somewhat Likely

43

Not More Likely

20

Source: CashStar, November 2009

The survey says that a key variable for success is personalization. 85% of online shoppers who are planning to give gift cards this holiday season expressed interest in purchasing personalized cards that can be sent securely via e-mail... up from the 50% of previous gift card givers who said "they were not personal enough."  70% said a personalized a gift card is important to them.

Likelihood to Purchase Online, Personalized Gift Card if Instant Send via Secure Email

Likelihood

% of Planning Card Givers

Very likely

16%

Likely

20

Somewhat likely

49

Never

15

Source: CashStar, November 2009

88% of online shoppers indicated that they would be more likely to purchase a gift card that has an incentive attached (i.e. send a $50 gift card and get a $10 gift card for yourself). 

David Stone, CashStar CEO, comments "... retailers understand the benefit of offering a $10 incentive card that drives traffic to the store or site, where the consumer typically spends 60% more than the card's face value." 

Additional Survey Findings:

Print-at-home is becoming increasingly popular.  Survey respondents print the following at home:

  • Coupons (70%)
  • Boarding passes (48%)
  • Concert/movie tickets (30%)
  • Gift cards (14%)

Online shoppers are interested in ‘green' alternatives:

  • 56% of respondents said they are more likely to purchase online gift cards because they are better for the environment than petroleum-based plastic cards
  • 1/3 of consumers plan to do more of their holiday shopping online than they did in 2008
  • 40% plan to give gift cards (of that number, 70% plan to give between two and five gift cards this year)

Siblings and friends top gift card recipient list, while restaurants top gift card category. Online shoppers revealed that their top gift card recipients are:

  • Siblings (48%)
  • Friends (45%)
  • 59% of online shoppers plan to give restaurant gift cards 
  • 56% are planning general retail selections
  • 35% are planning to give consumer electronics gift cards

Survey respondents print coupons, boarding passes, concert/movie tickets

and gift cards at home.

Print At Home or Work

Item Printed

% of Respondents

Coupons

70%

Boarding passes

48

Concert or movie tickets

30

Gift cards

14

None

17

Source: CashStar, November 2009

For more detailed information from the CashStar website, please visit them here, or to get a full copy or the  2009 Pre-Holiday Online Shopper Gift Card Survey results, please go here.

 

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