According to a recent study, gift cards’ business has increased from $35 billion to $155 (from 2003 to the present). The NRF monthly user server (National Retail Federation) showed that gift cards had topped a list of the most desired present of the year 2015. So, what makes customers to this idea? Customers praise these discount vouchers when receiving them in gift card boxes. These card businesses are continuously increasing with rapid growth. What might be the likely motivation to loyal users that makes all of them buy gift tags, also actively like to get them? So let us see what various surveys say about “why occasional gift cards more appealing to the customer.”
Gift Cards Overall Growth
Firstly, let us discuss the vouchers’ overall expansion; gift coupons become the most favorite type of prepaid product to gift. In the 1990s, it makes its entry and has experienced massive growth with times and since then is no turning back. Every day customers are getting more prone to gift tags. The chart above shows the data from 2003, representing the correct advancement of the prepaid vouchers from 2003 to 2017. It might be the old data, but there is a need to study how this trend is getting popularity in the customers, and it will continue to happen in the future. In the market, you can avail two types of cards
- Open-loop: Considerable payment system brads issues these cards like American Express, Master Cards, or Visa.
- Close-Loop: Particular retailers issue these kinds of cards, and you can redeem it at retailers’ chains.
Detailed research on the popularity of gift cards is not clear, but several studies give facts regarding the particular types, number, purchase location, and occasions linked to voucher purchases.
Survey Held in the United States of America
In America, people love to give gift cards presented in unique gift cardholders. In the USA, the study was conducted amongst the citizen with the gift tag buyers as the sample. Do you know the data from the survey was interesting and catchy? By this, you will understand precisely why individuals like to buy the tags. The survey answered the two essential questions. This blog is about these questions.
- Reason: Why customers prefer to present gift cards rather than gifts?
- Factors: What are the motivation factors?
Once you study the outcome in detail, you will consider the tags as the best ideas, and individuals will increase their exercise of purchasing cards shortly.
Learn Key Facts Why Customers Like to Give Cards
- Popular amongst User: In the USA, around one-third of the gift bought as gift tags.
- Respondents Reactions: Around 94% of people mentioned they would like to purchase the voucher in the coming year.
- Occasions and the increase in gift cards’ demands: There was a rapid increase in the vouchers’ sale when there were occasions. For instance, they bought the gift cards and presented it in the wedding gift card box. Other than that, Birthdays (around 70%) also winter holidays (approximately 64%).
- Around 95% of these respondents that presented the cards also received the vouchers.
- Average: The buyer of coupons got 1.2 gift vouchers last year.
The selection of the respondents was based on different 31 constructs. They have developed it from previous studies, past card shoppers’ study, area or general social attitudes, and buying behavior. The information was gathered from grocery stores, gift card consumers from convenience and card mall consumers.
Gift Cards Buyers Motivation
Once they have gathered the data, the extracted the facts mentioned below
- Shopping Affinity
- Shipping urgency Degree
- Grifting level ( low, high)
- Particular requirements with gifting
- the desire for the emotional element
- Customer complete interest in using and buying gift vouchers
- Coupon use
- Online preference
After gathering all the information, respondents’ survey output was distributed into 4 clusters.
- For the many respondents, the biggest reason for switching towards the gift cards was “it’s the busy life.” the cluster showed around 33.23% of the entire respondents; thus, clients liked to buy gift vouchers because it not time-consuming.
- Respondents’ second most popular reaction made the cluster of about 2.18 %. It was the respondents who were motivated to sustain the respondents within the budget.
- Here is the third most well-known respondent’s response as per the clusters. It made a cluster of about 22.45. It shows that the customer has wished to make a receiver happy.
- Here is the last response of the respondents that made about 22.22 % of the clusters. By doing this, they were giving the freedom of choice to the receivers. They can buy whatever they would like to purchase.
The Gift vouchers and the Gifts Card Boxes
So, the entire information mentioned above has cleared why customers like gift cards over other products. Remember, the increased demand for these vouchers also boosts the requirements of gift card packaging. Many leading brands are looking for a gift card holder that adds an x-factor to the valuable tags and coupons.
Today, in 2020, the demand for gift vouchers is still increasing. The receiver of all ages loves to receive a gift in the form of tags. It enables them to buy whatever they like. The study has shown that people’s primary reason for these types of gifts is their busy schedules, and they need to get the vouchers and present them in the beautiful gift card box. These vouchers allow the customers to give friends and family an exclusive gift by remaining within the budget. Not only this, it provides the freedom of choice, whether it is a teenager or adult man everyone likes to but the gift of their choice.
These vouchers are not only beneficial for the customer but also for the retailers. Cards show the opportunity to make a sturdy link with clients; it raises company awareness, increases profit, and grabs new buyers’ attention.