A 2010 article in HR magazine reviewed e-gift cards
(electronic gift cards) and forecast their growth in the incentive
industry. It focused on the leading
advantage of e-gift cards as the immediacy of award delivery, and how it is an
overall more positive experience for the person receiving the award. Another
possible benefit included reduced costs for gift card fulfillment, labor, and
shipping. In 2010, there were only a few retailers testing the waters in
digitizing gift cards, with the prospect of many more joining them in the years
to come.
Fast Forward
In 2016, a Prepaid Consumer
Insights study was conducted which surveyed 3,650 consumers, and showed that
gift card use is stronger than ever. Additionally, e-gift cards are quickly
gaining popularity, just as the 2010 report had suggested. We recently spoke about the benefits of using gift cards in your incentive program.
If your organization is already using gift cards, chances are some of them
might already be mobile.
Why use mobile gift cards?
Data from all three age groups surveyed, which
ranged in ages from 18-55 and over, showed that consumers are using e-gift
cards more than ever. It’s no surprise that people are busier, and also using
their mobile devices more frequently today. Have you ever gotten to the store,
only to realize that you left your gift card for that retailer at home on the
counter? Or perhaps you can relate to the dread of coming to the realization
that you lost a gift card you received in December which you were saving to buy
new patio furniture? E-gift cards solve those problems. As long as you have
your mobile device with you, you need not worry about remembering to grab your gift
card off the counter, or losing it all together. Consumers agree, and the most commonly reported benefits include: convenience,
no need to carry around the physical card, and you are less likely to lose the
cards. Other benefits include the ability to use apps that store your mobile
gift cards in one convenient place, as well as personal notifications via text
or email alerting you about gift card balance or other offers from that
specific retailer.|
Will the trend continue?
Don’t get me wrong… physical gift
cards aren’t going anywhere. However, with many factors such as data analysis
being more readily available, it’s likely that mobile gift card use will
continue to grow. Additional 2017 research from Incentive Magazine, specifically regarding holiday shopping,
showed the continued rise of digital gifting, and even concluded: “We are sure to see this trend carry through to influence the
rewards and incentives space even further in the year to come.” The expectation
of instant gratification, as well as the ever-growing online shopping platform,
will continue to fuel the growth of the mobile gift card. They got it right
seven years ago, so it’s looking like the trend will continue for the
foreseeable future.
Sources:
http://www.incentivemag.com/Gift-Cards/Retail/Self-Purchasing-of-Gift-Cards-on-the-Rise/
https://www.firstdata.com/en_us/insights/prepaid-consumer-insight-study-2016.html
http://marketinginnovators.com/blog/gift-card-trophy-value-why-cash-is-not-king
