Gift cards have been a sweeping trend among sports franchises, quick/casual service restaurants, and big box retailers over the past five years. As gift cards have reached the masses, are they as effective now as they were five (5) years ago?
No, according to a recent report from WSL Strategic Retail, which states that 44% of shoppers gave gift cards during the holiday season in 2007, down from 60% in 2003. One must factor in the looming economy to the report's results, but this should be important to consider when promising results for corporate partners/internal management.
The WSL Strategic Retail report also revealed that*:
- 58% of people with HHI of $100,000+ bought gift cards (vs. 34% of people with HHI under $50,000)
- 41% of respondents indicated that they would rather receive cash
- 60% of teens and adults said that they spend more than the value of the gift card when they use it (demonstrating an incremental "lift" for gift card providers)
*Results for the 2007 Christmas holiday shopping season