Chase Paymentech, which provides payment processing for many sporting goods retailers, said a recent survey of 850 American adults found that 85% of those who had received a gift card spent more than its face value when they redeemed it. Recipients spent on average an additional $17.70 of their own money when redeeming the cards. 

The survey, which was commissioned by Chase Paymentech, showed:
 
  • Gift card buyers who purchased a gift card within the past 12 months bought 4.7 cards for others, in addition to two cards for themselves. This may indicate that gift cards are being used as potential budgeting tools.
  • 82% of users said that a discount for the purchaser's use when buying the gift card would make them somewhat or much more likely to purchase gift cards.
  • 61% said an offer of free gift packaging for cards is also a strong purchase motivator.

“One of the more compelling aspects of this study,” said George Wilcox, group executive, Chase Paymentech, “is that gift card buyers plan well ahead of time to purchase a gift card.”

Retailers need to answer this enthusiasm with visible and accommodating gift card displays.

More than one-third, or 37%, of past year gift card purchasers have entered a store intending to buy a gift card and left without buying it because:

    • They couldn’t find the gift card display (21%)
    • They didn’t care for any of the designs (21%)
    • They changed their mind and decided on another item (20%)
    • The cards were locked behind the counter (15%)

Retailers who are aware of gift card popularity, and make gift card purchases easy for consumers, are more likely to capture those sales.

“During a down holiday season, where each sale is increasingly important, gift card purchases will be crucial,” said Wilcox.