Consumer research snapshot: Consumers choose gift cards for moms, dads and grads

The majority of consumers (61%) buy gift cards as gifts for seasonal holidays and milestone events and do so because they provide the recipient flexibility to purchase something they actually want, according to the Q1 2023 Gift Card Gauge from Fiserv. Additional stats from the report include: Graduations are the most common spring gift card occasion, and 33% of shoppers will give gift cards to graduates. For Mother’s and Father’s Day, 14% of moms and 15% of dads can expect to receive gift cards. Other than birthdays and winter holidays, 44% of consumers said they bought gift cards for congratulations and 30% for thank yous. 53% of consumers purchase gift cards because they are doing last minute shopping; 50% do so because they can’t find a tangible gift the recipient will like; and 48% do so because of gift card promotions. 60% of shoppers purchase physical gift cards; 30% want the card to depict the milestone event. 44% of consumers purchase gift cards from major national brands; 40% a mix of national and small retailers; and 16% small retailers. In regard to gift card purchasing channels: 34% buy gift cards from retailers featuring gift cards for multiple merchants. 31% purchase from the retail store. 30% purchase form the retail website. 41% aged 45 and up prefer purchasing from retailers that have multiple merchant gift cards. 37% aged 18-44 say they prefer to purchase fit cards from merchant websites. Inflation’s impact Shoppers are split on the impact inflation will have on their gift card purchases, as well as where they will direct these purchases. More than half of consumers (54%) said today’s economic environment will change their views on gift cards while 51% said that an item of need will drive them to use gift cards. In correlation, 78% of consumers say they would use loyalty points to buy a gift card, including more than 75% of those age 18-44. In Fiserv’s annual consumer survey, 67% of consumers said that gift card promotions would influence them to purchase more gift cards, and 54% took advantage of a gift card promotion in 2022. “With inflation straining consumers' wallets, gift card promotions providing discounts and/or bonuses have become an attractive option for consumers hoping to stretch their spending power,” Sam Lituchy, Fiserv’s vice president and head of gift solutions, told Retail Leader Pro. “Examples of these promotions can be as simple as a $100 airline gift card on sale for $90 or a $50 retail gift card that provides the buyer with an additional $10 gift card that can be used during their next visit to that store. To that end, businesses catering to customers looking to stretch their dollars are actively building more gift card promotions into their marketing campaigns.” While seasonal and milestone events can boost gift card sales, the trend of consumers buying more gift cards is ongoing. In 2022, 56% of U.S. consumers purchased the same number or more gift cards than they did in 2021 — and gift card purchasing has steadily increased year-over-year for the better part of three decades. “The reasons consumers are increasingly buying gifts cards can vary, but recent trends include inflationary pressure on consumer wallets, supply chain issues impacting in-store stock of physical goods and the flexibility gift cards provide consumers to spend their money on what they want,” Lituchy said.

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