Top Digital Service Gift Card Features

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Top Digital Service Gift Card - Features

While we were not able to identify the top features that people look for when purchasing gift cards for digital services, we were able to find that people are most interested in being able to earn a reward from the gift card. They are also more likely to purchase an e-gift card if it provides some sort of a personalization option.

Useful Findings:

Insights on Consumer Gift Card Preference:

  • According to Blackhawknetwork's 2018 study, 42% of the people who have purchased gift cards for themselves have done so in order to earn points like airline miles, loyalty, fuel or credit card points.
  • 55% of the people who purchase gift cards are interested in giving or receiving digital gift cards that can be added to a mobile app or digital wallet.
  • 80% of the consumers find promotions involving physical gift cards more influential when it comes to purchase decisions than other options like bonus ‘dollars’, coupons and digital gift cards.
  • 60% of 18 to 34-year-old consumers who have purchased gift cards would be interested in receiving a gift card through a social platform like Facebook.
  • Between 30 and 40% of consumers surveyed would spend more on a gift card if it had a personalization options such as a message, gift wrap, video or photo.
  • 43%, 55% and 61% of consumers surveyed would like to give gift cards that allow them to play the lottery, have options for multiple brands within a specific category, and have for a variety of local restaurants, respectively.

Features pertaining to Personalization

  • As published in Gift Card Girlfriend on November 2017, personalization is an important feature for e-gift cards, as customers find aspects such as the choice of having a personalized e-gift card designs, personal photos or even video messages important.
  • Other important aspects include conveniences around scheduling a delivery and choosing a custom dollar amount.

Specific features that are noted as 'outstanding' for Mageplaza Gift Card extension:

-- Flexibility in the number of vouchers and its values
-- Ease-to-understand and attractive design
-- Ease to customize and personalize
-- Being user-friendly and easy to perform
-- To have the possibility of delivery via SMS, emails, mail
-- To have different ways of storing cards
-- To provide support for giving messages

Incentives that drive purchase of Gift cards

  • According to a survey done by Pyments.com, although a gifting occasion is the primary reason purchasers buy gift cards (73%), promotions are an important driver of purchases as well (18%).
  • Moreover, having a platform that supports the ability to run gift card promotions to drive incremental gift card sales attracts new customers.
  • According to a survey published in Business Wire, consumers want to have a discount on select items when using a gift card (42%), a bonus gift card with the purchase of the card (31%), a free item after using the gift card (12%), or a bonus amount added to the card (8%).

Features that reduce guilt around giving giftcards

  • According to a survey done by Cashstar, 60% of consumers said that getting gift cards of their favorite retailers, restaurants and brands is on their wish list this year. On the other hand, 30% feel guilty about asking for them.
  • Features offered by retailers, restaurants and brands that reduce the guilt around giving gift cards include special packaging for plastic gift cards (38%), the ability to save gift cards to mobile wallets/apps /hone (24%), and the ability to add a customized text greeting (23%).

Research Strategy:

To find out the top features that people look for when purchasing gift cards for digital services, we looked into market and industry research reports involving gift cards in sources such as Marketresearch, Markets and Markets, Mordor Intelligence, Technavio, GM Insights, Globenews wire, Prnewswire, and Busness Wire. However, the information available in these sources was mostly limited to the size of the gift card industry, with no specific details about gift cards for digital services.

Since this information is deemed to be the most important for companies providing gift card services, we looked through surveys done by such provider companies like Cashstar, Mageplaza, and Pyments. Although there were several relevant studies and quantitative insights, there was hardly any information specific to gift cards for digital services as the end-use of the purchase was not given much importance while compiling insights for purchase-driving features.

We also looked into press-releases, reports and articles from gift card associations and marketing-specific websites like Incentive Gift Card Council, Incentive Marketing Association, Marketing Week, Marketing Profs, and Adage. As the associations were directly concerned with the market and provided regular updates on the latest developments in the area, we hoped to find a comprehensive study that would detail why people were purchasing gift cards for digital services along with relative importance provided to each of these reasons. However, the information was not available for digital services, as it was mostly centered around the gift card industry in general.


Sources
Sources

Quotes
  • "As egift cards are becoming an increasingly popular choice for last-minute, impromptu and “just because” gifts, I am always looking for features that make egift cards more personal. So a couple of years ago, I reviewed egift cards from top stores and restaurants to see which ones would allow me to personalize the digital delivery with a choice of egift card designs, personal photos or even video messages."
  • " I also wanted to know which egift cards would allow me to schedule delivery and choose a custom dollar amount. After launching that first review of the best egift cards available, I discovered that customers had two more basic questions. They want to know what an egift card looks like and where (how) it can be used. So I looked for those things too."
  • "Given that digital delivery is a relatively new gifting style, it makes sense that people want to know how it all works and what the recipient experience will be. For this reason, merchants that offer customers an egift card preview and accept egift cards both in their stores and online rank higher (for me) than those that don’t."
Quotes
  • "The study looked at who purchases gift cards online, how satisfied they were with their purchase experience, which personalization options are important to customers, how prevalent self-purchase has become and what role promotions play in purchase decisions."
  • "The study found that online gift card buyers were mainly females buying the cards for family or friends with high household incomes of $89,000 on average. And although most customers sought out some level of personalization with their gift cards, most were unwilling to pay any more for that personalization feature."
  • "Although a gifting occasion is the primary reason purchasers buy gift cards (73 percent), promotions are an important driver of purchases as well (18 percent). While every brand views promotions differently, having a platform that supports the ability to run gift card promotions to drive incremental gift card sales, attract new customers and lock in holiday spending is probably important,” according to the report"
  • "According to the study, gift card sales rose to $129 billion in 2015, while “closed-loop gift cards” that can only be redeemed at the merchant listed on the card rose $3 billion to $82 billion. Digital gift cards grew at the fastest rate, an increase of 26 percent, to $7.1 billion in 2015."
Quotes
  • "According to the survey of more than 1,100 U.S. consumers, 60 percent said gift cards to their favorite retailers, restaurants and brands are on their wish list this year, jumping to nearly 70 percent among 35-44 year-olds. Yet, 30 percent said they feel guilty asking for them, citing several reasons: they don’t like asking for anything (62%), it feels the same as asking for cash (61%) and it doesn’t feel personal enough (45%)."
  • "The features offered by retailers, restaurants and brands that reduce guilt around giving gift cards include: special packaging for plastic gift cards (38%), ability to save gift cards to mobile wallets / apps / phone so the recipient has the gift card whenever they want to use it (24%), and the ability to add a customized text greeting (23%)"
Quotes
  • "Across all ages, 42% of respondents said their preferred incentive for purchasing a gift card was a discount dollar amount. With value top of mind, the next preferred incentive was a bonus gift card with the purchase of card (31%), followed by a free item with purchase (12%), and then a bonus amount added to the card (8%)."