Gift cards have become increasingly popular among younger shoppers, with a significant 82.6% of Gen Z shoppers having purchased a gift card in the past three years, according to a survey conducted by The Gift Card & Voucher Association (GCVA) among 2,000 UK shoppers. This outpaces the 67.6% of Baby Boomers who have done the same, indicating a generational preference for this form of gift giving.
The survey also revealed that gift cards have a significant impact on customer loyalty and engagement. Approximately 33.3% of Millennials and 27% of Gen Zs reported becoming regular customers of new brands after receiving a gift card related to that brand. This suggests that gift cards can serve as an effective tool in driving customer acquisition and retention, particularly among younger demographics.
Another interesting finding is that 25.2% of Millennial shoppers reported purchasing gift cards specifically to support local businesses. This demonstrates the importance of gift cards in promoting and sustaining small businesses, as they provide an avenue for consumers to show their support and contribute to the local economy.
While the proportion of shoppers purchasing gift cards for others remained consistent across generations, younger shoppers were more likely to buy gift cards for themselves. Approximately 42.2% of Millennials and 34.8% of Gen Zs stated that they have purchased gift cards for personal use. The report suggests that this trend can be attributed to the desire among younger shoppers to save money, as gift cards provide a means to budget and control spending. Additionally, gift cards are seen as a secure payment option, contributing to their popularity among younger consumers.
GCVA director general Gail Cohen emphasized the importance of retailers engaging younger shoppers through gift cards in order to build brand loyalty. She emphasized that retailers cannot overlook the significance of gift cards as a customer engagement and retention tool, especially given their popularity among younger demographics. Cohen also highlighted the thriving gift card industry, which is adapting to meet the changing needs of consumers by focusing on digital solutions and self-use options.
Retailers that offer a gift card program stand to benefit financially and in terms of customer loyalty. By providing customers with greater flexibility in both the products they purchase and their preferred payment methods, retailers can enhance the overall customer experience and build lasting relationships with their clientele.
Useful links:
1. GCVA (The Gift Card & Voucher Association) – The official website of the GCVA, providing information on the gift card industry in the UK and resources for retailers.
2. Forbes – Why Gift Cards Are Now More Popular Than Ever Before – An article from Forbes discussing the reasons behind the increasing popularity of gift cards and their impact on customer engagement and loyalty.
