Why are gifts cards so popular? Well, allow us to simply state two obvious points. They give recipients what they want. And they give shoppers easy choices. According to a Blackhawk Canada survey, Canadian shoppers cite choice as the most attractive feature of gift cards. As reported by Christine Kern on InnovativeRetailTechnologies.com, gift cards continue to grow in popularity all throughout the country.
“Gift cards have the highest awareness among prepaid products, and attitudes about giving and receiving gift cards are also positive, with gift card malls being the top purchasing destination,” she writes. Kern also notes that the Blackhawk Network’s 2015 Canada Gift Card Survey found that 87 percent of respondents both bought and received gift cards over the previous year – a 19 percent spike from 2010.
53 percent of the respondents had purchased four or more gift cards over the previous year, while 76 percent of those surveyed reported that they would prefer to receive gift cards from their favourite stores instead of specific gifts. The Blackhawk Canada survey also revealed that Canadians buy gift cards for all occasions including birthdays, winter holidays and even for self-use.
Are gift cards popular with Millennials? According to Denise Dahlhoff on ChainStoreAge.com, gift cards are “exceedingly popular” with Millennials. She cites research from the Wharton School’s Baker Retailing Center and The NPD Group that found that “based on customer receipts, gift cards are particularly popular with Millennials. Their share of wallet of gift cards is higher than that of other age groups at mass merchants, convenience stores, and warehouse clubs.”
What factors contribute to gift cards’ popularity with our younger generation? Among them is the fact that gift cards are convenient and fast to buy, says Dahlhoff. Simply put, they save shoppers time. Because Millennials prioritize convenience and instant gratification, they like the “getting things done quickly” effect of buying gift cards. Dahlhoff cites a National Retail Federation survey that found that Millennials, more than any other age group, stated that because they are fast and easy purchasing choices, gift cards are more desirable than traditional gifts.
She also notes that Milliennials simply feel that gift cards are more practical. “The recession has made people more conscientious about money, resulting in more cautious consumption and greater focus on value, savings, and minimizing wasteful spending,” explains Dahlhoff, “Millennials experienced the recession in their teenage years and early to mid-twenties. Thus, they grew up around a greater sense of financial carefulness.”
At Canadian POS Corporation, we’re extremely confident that gift cards will never go out of style. Their growing popularity amongst all age groups, including our youngest, proves that they are top choices among gift-seeking shoppers. And there is certainly no indication that the trend is going to change!
We are happy to offer Canadian business owners the opportunity to cash in on this ever-growing craze. Gift cards have proven themselves as the perfect solution to grow your business. They encourage repeat business, attract new customers and boost sales all year long. Canadian POS Corporation’s gift card solution works to maximize sales with a complete package of marketing features. Always mindful of your business needs, simple administration and top-notch security are built-in features to make program management simple and cost-effective.
For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.