2018 U.K. Prepaid Gift Cards SURVEY · purchase eGift/digital gift cards from Amazon. Nearly 8/10...
Transcript of 2018 U.K. Prepaid Gift Cards SURVEY · purchase eGift/digital gift cards from Amazon. Nearly 8/10...
2018 U.K. Prepaid Gift Cards
SURVEY££
For informational purposes only
Table of
Contents
Objectives and Methodology 3
Market Opportunity and Penetration 4
Purchasing Channels 11
Card Design and Materials – Influencers 15
Cross-border Usage – Global Retailers 17
Reloadable Gift Cards 18
Key takeaways from First Data U.K. and U.S. Consumer Insights Survey 2018 19 18
2018 U.K. Prepaid Gift Cards Survey — 2
GIFT CARD INCIDENCETotal population sample size n=1,491
GIFT CARD TRACKING SURVEYTotal complete sample size n=1,032
Qualification Criteria
• Adults age 18+ residing in the U.K.
• Purchased or received a gift card
(physical or virtual) in the past 12 months
Generation Groupings (Age)
• Age – 2018 Survey
METHODOLOGY
Sample
• Total sample surveyed representative to U.K. population in terms of gender,
age, ethnicity, and income; no oversample added to reach ethnicity quotas
• Total sample (including terminates, incompletes, and quota full) used to
calculate incidence; qualified sample used for all other calculations
15Minutes
October 2018
Survey Conducted Length of Interview
Gen Z Millennials Boomers+Gen X/Y
18–23 24–37 38–53 54+
Objectives and
MethodologyObjectives: Understand and track trends in physical or eGift/digital gift card usage among both gift card purchasers and gift card receivers.
A
B
2018 U.K. Prepaid Gift Cards Survey — 3
55%
45% 47%
40%
Physical eGift
62%
18%
44%
27%
Preference to Purchase
Preference to Receive
Purchase Incidence
Receiving Incidence
Market Opportunity and
PenetrationSlightly more U.K. consumers purchased and received physical rather than eGift/digital cards over the past year.
Overall, 15% of U.K. consumers claim to have purchased more physical gift cards in the past 12 months compared to a year ago. Purchases of eGift/digital cards have also increased over the past year.
More of these gift card purchases were for other people versus oneself.
In the future, 47% of all U.K. consumers are highly likely to send eGift/digital gift cards to other people. This is even more likely among Millennials.
2018 U.K. Prepaid Gift Cards Survey — 4
Market Opportunity and Penetration
Millennial U.K. consumers are the most active in terms of purchasing both physical and eGift/digital gift cards.
Average Number of Physical and eGift/Digital Gift Cards Purchased in the Past 12 Months by Age and Ethnicity (Base=Purchasers)
16.4
12.4
5.5
3.0
7.9
2.7
5.0
White/Other
Black
Asian
Gen Z
Millennials
Boomers+
Gen X/Y
# of Physical Card Purchases by Age and Ethnicity – 2018
N/A
8.4
3.8
3.0
6.2
N/A
3.7
White/Other
Black
Asian
Gen Z
Millennials
Boomers+
Gen X/Y
# of eGift Card Purchases by Age and Ethnicity – 2018
2018 U.K. Prepaid Gift Cards Survey — 5
Physical($101 in U.S.)
Avg. Spending/Card – 2018(Base=Purchasers)
Avg. Value/Card – 2018(Base=Receivers)
eGift($98 in U.S.)
Physical($75 in U.S.)
eGift($66 in U.S.)
£61 £58
£99
£74
£
eGift/digital cards are beginning to be an increasingly popular choice in the U.K. 38% of consumers annual gifting budget is spent on gift cards.
Although consumers purchased slightly fewer of each type of card, eGift proves to be a popular choice in the U.K. It is worth noting that a key difference between the U.K. and U.S. is the proportion of total gift spending that is spent on gift cards.
U.K. consumers indicated that they spent an average of £531 in the past 12 months on all gifting (i.e., cards, presents, cash) compared to an average of £203 on gift cards. To draw a comparison, in the US $728 on average is spent on all gifting whilst $397 is spent on gift cards.
One in three (32% vs. 33% in the U.S.), spent more on a gift card than on a traditional gift.
AllGifts
£531 GiftCards£203
Market Opportunity and Penetration
2018 U.K. Prepaid Gift Cards Survey — 6
Overall, very few of the surveyed consumers purchased a gift card for themselves exclusively – either a physical or eGift/digital gift card. Those who did, did so primarily for a discount or to receive loyalty rewards.
Reasons to Purchase Gift Cards for Self and Relative Spending (Base=Purchasers)
38%
37%
25%
19%
18%
3%
Don’t need tocarry cash
Other reasons
To receivea discount
Loyalty/rewards programme
Budgeting/moneymanagement
To shop online
Reasons to Purchase Cards for Self – 2018(Multiple Responses)
Spend More/Less on Cardsfor Self vs. Others – 2018
Same
More for self
More for others
Not sure
38%
36%18%
8%67%
40%
27%
43%
40%
0%
33%
White/Other
Black
Asian
Gen Z
Millennials
Boomers+
Gen X/Y
Spend More for Self – by Age and Ethnicity – 2018
Market Opportunity and Penetration
2018 U.K. Prepaid Gift Cards Survey — 7
Nearly half of consumers would consider sending an eGift/digital gift card in the future.
Reasons why likely to send eGift/Digital Gift Card
Reasons why unlikely to send eGift/Digital Gift Card
Immediate delivery
Want to give an actual card/gift to
the recipient
They are harder to lose than a
traditional card
Easier to send than mail a physical
gift card
Want the recipient to be able to unwrap a gift
Email notification when the gift is
received
Easier to purchase than traditional cards
Unsure the recipient would be able to retrieve it
It’s a cool gift to give
Easier for the recipient to redeem (don’t need
the actual gift card)
Redemption process may be too difficult for
the recipient
Can send a personalised
message
Environmentally friendly way to give
a gift card
Worried about online safety
Choice of delivery method (e.g., text
or email)
45% 29% 29% 28% 27%
24% 23% 21%
21%
21% 19%
56% 32% 18% 16%
Consumers are primarily interested in eGift/digital gift cards as they allow for immediate delivery. However, those who would not send an eGift/digital gift card claim that they would prefer to give a physical gift rather than a gift card.
Future likelihood to send eGift Cards (Base=Purchasers)
Market Opportunity and Penetration
2018 U.K. Prepaid Gift Cards Survey — 8
Gift cards have an impact on consumer purchasing behaviour in the U.K.
34%
of U.K. consumers will visit a store they would not have visited otherwise, if they have a gift card.
of U.K. gift card receivers have redeemed a gift card in the
past year.
96%
of U.K. consumers will visit a store more often.
of U.K. gift card receivers have spent over the value of the card
at the retailer.
74%
of U.K. consumers say that receiving a gift card from an
employer would make them more likely to stay with that company.
39%
of those surveyed are unsure.
22%
The average amount that they spent over the card value is
�41 in the U.K.
Market Opportunity and Penetration
44%
2018 U.K. Prepaid Gift Cards Survey — 9
Key Talking Points
The growth trend in gift cards (physical and
eGift/digital) is positive and demonstrates that
there is an opportunity to drive your gift card
programmes into new segments and deepen the
reach within existing verticals.
There is opportunity to increase store spend
(clicks and mortar) above the value of the original
gift card. The research indicates that, on average,
this is by £41.
With a gift card 34% of surveyed consumers
would visit a store that they would not otherwise
have visited, whilst 44% of receivers would visit
more frequently. How are you retaining this
footfall?
We are seeing that growth in the U.K. is
outpacing the U.S. In line with research from the
UK Gift Card & Voucher Association (UKGCVA),
digital is driving this growth (B2B) in addition
to growth in cards being distributed in malls.
Gifting drives consumer engagement, spend
and increased footfall to clicks and mortar.
Leveraging gifting as a discount or loyalty offer
can drive incremental spend.
Nearly all of the surveyed gift card receivers have
redeemed a gift card in the past year (96% in
the U.K.), and three-quarters of them have spent
over the value of the card at the retailer (74%).
About a third of receivers say they would like to
use an exchange website, even if they had to
give up some of their gift card value.
U.K. Consumers check their gift card balances infrequently. This offers an opportunity for retailers to add value to the gift card proposition by pointing consumers to where they can check their balances.
• Only 39% check their balance at least once a month or more, although 29% say they never check their balance.
• Most of those who check their gift card balance
do so online (45%) or in a store (31%).
Market Opportunity and Penetration
2018 U.K. Prepaid Gift Cards Survey — 10
Have purchased in past 12 months
From a gift card mall
36%
In-person at the store
41%
Online at store’s website
35%
Online site selling cards for many stores
32%
Proportion who buy eGift cards here
Proportion who buy physical cards here
32%
Number of cards purchased here
4.2%
Total spending on physical and
eGift cards
Proportion receiving free/discounted
cards
37%
Number of free-discounted cards received
3.3%
Prefer to purchase cards from a large retailer
Rank order Amazon #1 or #2 in preference
Rank order Marks & Spencer #1 or #2 in
preference
Bank website
34%
Bank mobile app
33%
Social media site
26%
Interested in purchasing from
Online-only merchants
56% £76 77%
69%
39%
Clicks and mortar are both very important channels, driving both new footfall and repeat purchases.
Malls are equally an important channelto attract gift card purchases.
There is a strong and unsurprising preference to purchase eGift/digital gift cards from Amazon.
Nearly 8/10 consumerswill choose to purchase eGift/digital gift cards from large retailers.
UK
U.K. consumers are using various new purchasing channels.
Purchasing Channels 24/7
Gift Card Purchasing Channels – 2018 Survey
2018 U.K. Prepaid Gift Cards Survey — 11
Retailer brands are strong in gifting.
Purchasing Channels - The Gift Card Mall
Most consumers who buy a gift card at a gift card mall say they have a particular store or brand in mind prior to making their selection. Typically the gift card malls where these purchases are made are located in a department store or food supermarket.
Department store Food supermarket or grocery store
Online only merchants Entertainment Discount store/Big box
30% 26% 17% 10%
9%
Speciality retail store
7% 6% 5% 5%
Chemist/health store Fast-casual restaurant Fast food restaurant Coffee shop
4%
Petrol station or convenience store
5%
Other stores or establishments
4%
Fine dining restaurant
11%
2018 U.K. Prepaid Gift Cards Survey — 12
Social Media - are you using this channel effectively?
Social media sites are not the first choice for the purchase of gift cards in the U.K. However, interest and likelihood to purchase are highest among Gen Zs.
Level of Interest and Likelihood to Purchase Gift Cards from a Social Media Site in the Next 12 Months (Base=Purchasers)
Social media is an interactive and instant source of product information. Gen Zs are influenced by the immediacy and “chatter” around products and services. Ease around use of embedded links is a great attraction to this demographic and for retailers, targeted advertising yields better results at a reduced cost.
Likely to Purchase (4+5)�by Age & Ethnicity – 2018
63%
42%
16%
3%
Gen Z
Millennials
Boomers+
Gen X/Y
23%
23%
White/Other
Asian
Black 54%
Interested (4+5) �by Age and Ethnicity – 2018
50%
45%
20%
4%
Gen Z
Millennials
Boomers+
Gen X/Y
24%White/Other
Asian
Black 46%
39%
Purchasing Channels
2018 U.K. Prepaid Gift Cards Survey — 13
About one in three respondents indicate having a high interest in purchasing gift cards from either a bank website or banking mobile app.
24/7
Interested in Banking Mobile App (4+5)�byAge and Ethnicity – 2018
67%
25%
7%
Gen Z
Millennials
Boomers+
Gen X/Y
31%
46%
White/Other
Asian
Black
60%
60%
Interested in Online Banking (4+5) �byAge and Ethnicity – 2018
69%
59%
27%
Gen Z
Millennials
Boomers+
Gen X/Y
33%White/Other
Asian
Black 60%
42%
10%
Purchasing Channels
2018 U.K. Prepaid Gift Cards Survey — 14
The design of a physical gift card is important, yet, not a game changer in terms of where it is purchased. Plastic physical cards are preferred over paperboard cards. Any type of card should be recyclable, including the magnetic stripe.
Card Design and Materials
Influencers
The design on the face of a gift card is very important to about half of the surveyed U.K. consumers. However, about two out of three agree that if they dislike a design, they will still buy the card at the store.
Design – 2018 U.K. Survey Type of Card – 2018 U.K. Survey
A majority of U.K. physical gift card purchasers prefer a plastic card over a paperboard one. However, if the card was board, it should be recyclable. A plastic card with a recycle logo would be acceptable to most, yet, a magnetic stripe on a card would render it not environmentally friendly.
56%
70%
Design of a gift cardis important
Will still buy a card, even if they dislike the design
Would pay a fee topersonalise an eGift card
Attractive card carrierwould eliminate the need
for a separate greeting card
62%
27%
11% 92% 87% 49%60%
Prefer a plastic card
Prefer a board card
Would expect a board card to be recyclable
Would purchase a plastic card
with recycle logo instead of board
Would consider card with magnetic stripe to be environmentally
friendly
2018 U.K. Prepaid Gift Cards Survey — 15
Card Design and Materials Influencers
Key Talking Points
60%
of consumers still prefer Plastic over Paper for gift cards but would like to see a recycled logo
Our card specialists can source alternative materials such as recycled PVC, Bio PVC, and PET-G, and can source ECO-friendly materials other than board.
of consumers who purchase a board card expect the board to be rigid and recyclable
A range of laminated premium FSC board materials are available which are great for the environment and strong enough to be washed.
92%
of respondents note that an attractive carrier will negate the need to buy a separate greeting card
A range of styles, shapes and sizes with different finishes such as foils, glitters, and embossing are available to create that perfect gift.
70%
of all respondents noted that the design of the card is still an important part of the selection of a gift card
Our experienced design team and consultants can support your programme to create your perfect range suitable for every occasion i.e., Birthdays, Weddings, Christmas...
Almost 2 3
2018 U.K. Prepaid Gift Cards Survey — 16
55% of respondents are interested in the ability to use a gift card in multiple countries.
Cross-border Usage –
Global Retailers
91%
74%
50%
27%
52%
92%
81%
White/Other
Black
Asian
Gen Z
Millennials
Boomers+
Gen X/Y
Ability to Use in Other Countries is of Interest – 2018(Total “Yes” Responses)
Is Ability to Use Gift Card in Multiple Countries Where Retailer Operates
of Interest? – 2018
No
Yes
Yes, but returning items concerns me
Yes, but other reasons concern me (e.g., foreign exchange charges, security, etc.)
33%
45%
17%
5%
If retailers improve the process of returns, then cross-border could increase by 17%.
The main barriers to cross-border usage can be addressed:
• Foreign exchange - leverage First Data’s Bloomberg rate.
• Security - global fraud prevention capability.
• Charges - retailer discretion.
2018 U.K. Prepaid Gift Cards Survey — 17
Two in five of those who bought themselves a gift card or received a gift card have reloaded them, primarily to enable additional purchases.
Reloading Gift Cards – Incidence, Reasons, and Reminders (Base=Purchased for Self + Receivers)
46%
27%
25%
21%
15%
14%
Be environmentally friendly
Don't need to carry cash
2%Other
Make additional purchases
Loyalty/Rewards programme
Budgeting
Receive a discount
Reasons To Reload – 2018(Multiple Responses; Base=ReLoaded)
Interest in Reminders – 2018
S/W interested (3)
Interested (4+5)
Not interested (1+2)
43%
28%
29%
Interest in Auto-Reload – 2018
S/W interested (3)
Interested (4+5)
Not interested (1+2)
21%
20% 59%
24/7Reloadable Gift Cards
2018 U.K. Prepaid Gift Cards Survey — 18
First Data U.S. Consumer Insights Survey 2018
Physical is still the preferred form factor across all age groups. However, the average number of eGift/digital gift cards purchased continues to grow YOY…subsiding cannibalisation concerns.
Consumers stated they are spending 55% of their annual gifting budget on gift cards.
For the fifth year in a row, lift is increasing and it’s up $21 YOY (from $38 in 2017 to $59 in 2018).
Self-purchasing is on the rise (up 6 points YOY) and the majority of those are spending more on themselves.
Of those surveyed, Gen Z and Millennials are most interested in purchasing a gift card from their bank’s website or mobile app.
Banking website: 39% of Gen Zers and 50% of Millennials purchase from a bank website.
Banking mobile app: 41% of Gen Zers and 46% of Millennials purchase from a banking mobile app.
The number of consumers interacting with eGift/digital gift cards is much higher in the U.K. Millennials are the most active in terms of purchasing both physical and eGift/digital gift cards.
Consumers stated that they are spending 38% of their annual gifting budget on gift cards.
One in three consumers spent more on a gift card than on a traditional gift.
Receiving a gift card impacts consumer behaviour; visiting a store they otherwise would not have done, visiting a store more frequently.
Consumers expect a variety of channels to purchase/redeem gift cards. There is an interest in purchasing a gift card from a bank website/mobile app.
Plastic physical cards are preferred over paperboard cards, yet any type of card should be recyclable, including the magnetic stripe. Plastic tax is a consideration.
First Data U.K. Consumer Insights Survey 2018
Key takeaways - A snapshot of the U.K. and U.S. gift markets
2018 U.K. Prepaid Gift Cards Survey — 19
Ready to evolve your Gift Card Strategy?
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