According to a recent study by TSYS, loyalty & rewards are important in driving consumer behavior and affecting payment preference. According to the study, 55% of the respondents chose rewards as the most attractive feature of their preferred credit card. Sales of gift cards in 2014 were at $124 billion. Advisory company CEB TowerGroup estimated that $750 million gift cards were not redeemed in 2014.
SmartGift—a leading provider of SKU-level gift card technology for e-commerce, loyalty & rewards providers—published the results of their latest survey on consumer habits in gifting.
According to Monika Kochhar, Chief Executive Officer & Co-founder of SmartGift, "We are solving the fundamental problem inherent in gifting. Over 82% of gift card shoppers saying that gift cards are impersonal or thoughtless and majority purchase them for their flexibility, shows that there is a huge delta there. We address that discrepancy by creating better gifting workflows that solve the needs of the digital consumer and drive revenues for retailers. Ultimately, not only do we want the digital consumers to use product level gifting but also traditional gift givers who would have previously handed over a gift face to face because smart gifting becomes a more convenient, flexible yet equally personal and beautiful experience for them."
"The product-level gift card takes the industry to its next phase by marrying the trophy value of a gift to the flexibility of the gift card. It's a new channel for retailers to sell more products, acquire new customers and reduce returns while giving their consumers a far superior and seamless brand experience."
Some of the highlights from the study:
- 75.9% of gift shoppers have given one or more than one gift cards in the past 12 months.
- Flexibility is the most important reason for giving gifts cards as it provides the option of various choices for the recipient.
- 10% of gift shoppers buy baby products or toys and 3.2% of shoppers buy jewelry.
SmartGift is a leading provider of SKU-level gift card technology for e-commerce, loyalty & rewards providers. SmartGift’s SKU-level gift card technology is leveraged by retailers and loyalty & rewards providers. Retailers bring gifting to the core of their businesses with the e-gift checkout, run product-level promotions and rewards campaigns, and set up corporate/bulk gifting to sell more products. Loyalty & rewards providers integrate with SmartGift to inject SKU-level capabilities and power superior customer experiences that bring greater flexibility and choice.SmartGift is based in New York City and is backed by influential leaders in payments, e-commerce and technology. For more information, visit.