During the 2014 holiday season the average shopper said they would buy up to four gift cards, spending up to $173 total, according to the National Retail Federation (NRF). Starbucks alone sold 46 million gift cards during the holiday season.
But as consumers become more reliant on digital tools and technologies, how will that change gift card giving and consumption?
Below, the RTP editorial team shares their thoughts on the gift card trend, and how they determine where to purchase gift cards.
Debbie Hauss, Editor-in-Chief: I purchase gift cards often, for friends, family and co-workers. The ability to send e-gift cards has made it easier to send gifts to people living in different parts of the country. Sometimes I’ll also purchase or order plastic gift cards in gift boxes to give as gifts during holidays. If possible, I prefer to send a specific gift card for a retailer that I know the recipient likes, otherwise Amazon gift cards cover most bases. I’m not typically sending gift cards just because I am a loyal customer of that brand – it’s usually because I know the recipient likes the brand. Maybe if I was offered a tempting incentive for purchasing gift cards from one of the retail brands I typically use, then I might be more motivated to do that.
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Alicia Fiorletta, Senior Editor: I used to find gift cards impersonal; almost like a “fake-out gift.” But now, I’m finding that there’s an art to gift card selection. I usually determine which retailer/brand to purchase from based on the tastes of the recipient. And with more retailers offering digital gift cards as an option, making my life, as a gift-giver, has become significantly easier. For example, I recently bought a co-worker an e-gift card for Club W, which is a wine club. Should I be receiving a gift card, I tend to gravitate to Starbucks or Sephora, mainly because they give me the option of either using the plastic card or entering the number in my mobile app. That way, the card is stored right on my phone and I don’t have to worry about leaving the card home accidentally if I want to make a purchase.
Rob Fee, Managing Editor: I don’t tend to give gift cards to family members or close friends. I will buy cards that are accepted anywhere, though, and give them to my daughter’s teachers around the holidays. There is another notable exception. Over the past three years, my brother-in-law had asked for a Best Buy gift card every Christmas and birthday. I had no idea why. It turned out he saved them all. After Christmas last year, he showed up at Best Buy with nearly 50 gift cards and went home with a huge new television. I can’t imagine the cashier was too pleased during that transaction. According my my brother-in-law, it took nearly 30 minutes to complete the sale.
Glenn Taylor, Associate Editor: I generally like to give gift cards as supplementary gifts to pair with an actual gift, usually for birthdays/holidays or events such as a graduation. From my experience, everyone seems to enjoy gift cards as long as they’re part of the gift and not the entire package. I feel like I’ve purchased more Best Buy and Barnes & Noble gift cards in the past than any other card, mainly because I’ve spent the most money recently in those places. Otherwise, I’ll give the recipient an AMEX gift card so they have their own choice of what they can purchase.
Brian Anderson, Associate Editor: I definitely purchase gift cards for family and friends on special occasions, but I can’t say that I have a particular brand preference – they typically tell me which brand they prefer. I always ask for gift cards during the holidays, and it seems as though the retail-neutral gift cards that are accepted anywhere (Visa Gift Card, for example) are popular among my family and friends. I believe it’s due to the unrestricted nature of the generic gift cards; they are accepted in multiple locations, allowing the customer more options to choose from.
Have you seen a change in how shoppers purchase and consume gift cards? Share your insights in the comments section below!
