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The average consumer is spending $59 more than the original value of their gift card, up $21 from 2017, according to the 2018 Prepaid Consumer Insights Study released by First Data. The report shows lift is being generated from gift card spend and continues to highlight a year-over-year branded currency growth trend. For the fifth consecutive year, when purchasing with a gift card, consumer overspend has increased.
First Data’s 18th Prepaid Consumer Insights Study looks at trends in branded currency, giving business owners insight into how gift card solutions can be a boon for their business. This year’s study is based on survey data from more than 2,000 US consumers and aggregates responses across four unique age groups: Linksters (ages 18-23), Socializers (ages 24-37), the MTV Generation (ages 38-53), and Maturists (age 54+).
“Business owners continue to have a tremendous opportunity to drive sales, build their brand, and increase customer loyalty by investing in a robust gift card program,” says Dom Morea, Senior Vice President, Head of Gift Solutions at First Data. “Our study shows that gift cards, or branded currency, are not only a potential growth engine for businesses, but are becoming the preferred gift for both purchasers and receivers alike.”
For the fifth year in a row spending lift from gift cards is on the rise, and business owners should take notice. On average, for every gift card purchased, consumers are spending a whopping $59 more than the original value of their card, a 21-dollar spike from just a year ago. This is especially true for fine dining and fast casual restaurants, along with drug stores. But spending spiked most on supermarket gift cards with consumers spending, on average, 94 percent more than the original value of their card.
Consumers love to give gift cards, more so than any other gift. More and more receivers of gifts prefer gift cards to physical gifts too. With this in mind, here are a few specific trends to make note of:
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