CXM Editorial TeamCXM Editorial TeamMarch 8, 2019
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3min264

The average UK consumer spends £41 more than the original value of their gift card, according to a new study.

The UK Prepaid Consumer Insights Study released by First Data found that 34 percent of consumers visit a store they would not have visited otherwise due to their receipt of a gift card.

Researchers looked at trends in branded currency, giving business owners insight into how gift cards can benefit and grow their businesses. This year’s study was based on survey data from more than 1,000 UK consumers and aggregated responses across four unique age groups: Generation Z (ages 18-23), Millennials (ages 24-37), Generation X/Y (ages 38-53), and Boomers (age 54+).

John Gibbons, Executive Vice President, Head of EMEA & Co-Head of Global Financial Solutions at First Data, said: “Our study shows a distinct opportunity for UK business owners to drive more sales, strengthen their brand, and bolster customer loyalty by implementing smart branded currency strategies.

“From employee rewards and customer service programs to social media promotions and targeted marketing campaigns, both physical and digital gift cards offer valuable incentives to both businesses and consumers.”

The study results showed increased interest for digital currency and a growth trajectory that is expected to continue. It found that 55 percent of consumers purchased plastic gift cards, while 45 percent of consumers purchased digital gift cards in 2018. While a majority of purchasers still prefer plastic, consumers are accelerating their use of digital cards largely due to convenience – as these can be sent instantly and are easier to reload.

Last year, UK consumers spent on average £203 or 38 percent of their annual gifting budget on gift cards; and while 81 percent of consumers surveyed purchased a gift card as a present for an occasion or event, one-in-three respondents spent more on a gift card than a traditional gift.




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