You may have noticed a little theme with our blogs this week. It’s all about millennials! Millennials (those aged 18 to 34) make up a very important and unique part of our population. They’re the individuals who are shaping our economic future. Our younger generation is very mindful of the benefits that come with using debit cards and credit cards, as we’ve pointed out in our last two blogs. And don’t think for a second that they don’t love their gift cards too!
On PlasticResource.com, it is revealed that a 2016 study conducted by the Wharton School’s Baker Retailing Center and The NPD Group found that gift cards were “overwhelmingly popular” with millennial shoppers. Evidently, young folks are aware of the many benefits that come with both buying and using gift cards. The study highlights convenience as a top draw.
Millennials love the convenience of gift cards.
“Plastic gift cards are easy to buy, easy to find, and save time,” says PlasticResource.com, “According to the study, Millennials specifically stated that gift cards are easier and faster to buy than traditional gifts. Nearly 90 percent of Millennials prefer receiving gift cards as gifts for their convenience, as well.”
Our younger generation finds gift cards so convenient that they are actually buying them for themselves! On Credit.com, Bob Sullivan reveals the findings of another study, conducted by Mercator Advisory Group, that highlights the fact the millennials are big gift card fans. He notes that purchases of gift cards amongst those in the 18 to 34 age group are rising with each year.
Millennials love loading gift cards on their mobile apps.
Karen Augustine is the author of the Mercator Advisory Group report. In Sullivan’s article, she points out that young shoppers load their gift cards onto retailer apps in order to use the money on themselves. “Retailers are introducing more mobile-based apps and offers when using their loyalty and prepaid programs, which may be fueling this growth in retailer gift card purchases,” she is quoted as saying.
“Young folks have found a new use for refillable gift cards. They are buying them for themselves,” Sullivan writes, noting that the study found a significant increase in the purchases of “retailer-specific” cards among millennials. “Nearly 3-in-5 young adult respondents indicated they bought them during the previous year, up from less than half of young adults who did so in the 2015 survey,” he quotes the report as revealing.
Millennials love the practicality of gift cards.
Young shoppers may be a bit more savvy than we give them credit for. They’re pretty adept at hunting for bargains, comparing prices online and not overspending. PlasticResource.com notes that the Great Recession actually shaped the way millennials use and think about money.
“Many members of this generation practice cautious consumption by focusing on value, savings, and the reduction of wasteful spending,” says the website, “Gift cards embody all of these ideals, making them a natural choice for Millennials.”