eGifts are hot as new consumer research shows for the first time, more than half of gift card buyers have also tried egifts. Fifty-three percent of the gift card buyers surveyed purchased an egift within the last year and 94% bought more or the same amount of egifts in the last 12 months compared to a year ago.
New consumer research from gift card specialist Blackhawk Network shows that egifting is following the overall trend of consumers increasingly shopping and purchasing on mobile devices and online.
In early 2015, Blackhawk Network surveyed approximately 2,000 Americans to examine their usage of gift cards and adoption of and sentiments towards egifts, which are virtual cards delivered to recipients via email, social media or text message. eGifts can be redeemed in-store, online or via mobile devices.
Key findings from the Blackhawk Network survey revealed:
• Immediate gratification and convenience drive egift sales: Fifty-three percent of the gift card buyers surveyed purchased an egift within the last year and 94 percent bought more or the same amount of egifts in the last 12 months compared to a year ago. The top reasons for doing so included: egifts offer fast electronic delivery (51 percent), they are easier to purchase (41 percent) and they can be sent directly to a recipient who lives out of town, preventing the trouble of sending a gift (35 percent).
• eGift redemption is not just online: The products are unique in that they effectively drive shopper traffic in-store, online and on mobile for retailers”a coveted capability. The research found that most of the egift recipients surveyed redeem online (69 percent) but a significant amount redeem in store (46 percent). The egift purchasers surveyed report that they predominantly buy the products online (82 percent) followed by mobile phone (26 percent) and tablet (25 percent).
• Significant opportunities for retailers to drive revenue with egift: Similar to physical gift cards, 82 percent of egift recipients surveyed spend more than the egift value. Additionally, 76 percent say that hearing about a promotion encourages them to spend their egift and 75 percent tend to treat themselves when spending egifts.
• eGifts popular for a variety of gifting occasions and self-use: With regards to occasions, the consumers surveyed who purchase egifts report that they most frequently select the gifts for birthdays (58 percent), Christmas/winter holidays (37 percent) and for “just because” gifts with no formal occasion (24 percent). The egift purchasers surveyed most frequently purchase the gifts for family friends (35 percent), self-use (28 percent), relatives (27 percent) and siblings and children (both 22 percent).
• More promotion of egift is needed to drive initial trial: Fifty-six percent of consumers surveyed who have never received an egift would be interested in getting one, yet 44 percent of shoppers surveyed who have never bought egifts report it’s because they’re not familiar with them. More than half (52 percent) of shoppers surveyed who have purchased egifts would buy an egift in store for immediate use, and this number jumps to 83 percent if there is a discount attached to the egift.
For data, background and forecasts on Blackhawk Network: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).