The industry of gift cards has seen rapid growth over the last few years. According to a report from Persistence Market Research the world gift card market is projected to hit $1,210 billion in 2027. This is due to changes in consumer behavior and the growth of online shopping. We’ll discuss some of the newest trends in the world of gift cards.
1. Personalization
Personalization is now a significant trend in the gift card market. Customers want to present gifts that are distinctive and personalized for the person receiving. Companies selling gift cards respond to this demand by providing additional options to customize the gift card. For instance, some businesses allow customers to upload their own images or designs in order to make a gift card that is personalized. Other companies allow you to include a personal message, or choose from various card designs.
2. Mobile and digital gift cards
Gift cards that are mobile and digital are becoming increasingly popular in recent times. People appreciate the ease of sending an instant gift card via SMS or email. This trend is accelerated due to the COVID-19 epidemic that has made purchasing online and using contactless payments more essential than ever. According to a study, digital sales of gift cards increased by 31% in the year 2020.
3. Multi-store gift cards and multi-brand cards
An additional trend within the field of gift cards is the growth of multi-store gift cards and multi-brand ones. These cards let consumers utilize their gift card in multiple shops or brands which gives them more options and flexibility. This trend is fueled by the increasing popularity of marketplaces online such as Amazon and Walmart that offer many different products of various brands.
4. Gift cards for experiences
Gift cards that are experiential are becoming more popular in recent years as people seek ways to offer experiences, rather than just physical presents. Gift cards that are experiential can be things like spa treatments food at a restaurant, or trips. According to a report from Blackhawk Network, experiential gift card sales increased to 40% during the year 2019.
5. Sustainability
Sustainability is now a major aspect for a lot of people and the industry of gift cards is no different. The gift card industry is responding to this by offering greener alternatives. For instance, some companies provide gift cards that are made of recycled materials, or permit users to contribute a percentage of the gift card’s value to a non-profit as well as environmental causes.
6. Virtual events and gifts
The COVID-19 pandemic has resulted in an rise in virtual events and the gifting. Businesses are providing virtual gift cards which can be used to purchase events and experiences online like virtual cooking classes, or wine tastings. This trend will likely keep going even after the pandemic has ended, since more people get at ease using virtual experience.
7. Reward and loyalty programs
Companies selling gift cards are now offering loyalty and reward programs to encourage frequent purchases. These programs could include discounted prices, shipping for free or special deals for customers. Reward and loyalty programs may help companies that sell gift cards build customers’ loyalty and improve customer retention.
8. Tools for personal finance and budgeting
In addition, some gift card companies are now offering budgeting and personal finance tools to help consumers control their gift card balances as well as keep track of their spending. These tools could include apps for mobile devices that let users check their balances on gift cards as well as transactions history, as well as budgeting tools that aid consumers to remain on top on their expenditure.
In the end the industry of gift cards continues to evolve to meet the evolving requirements and preferences of the consumer. From personalized or digital gift card, to sustainable and experiential gifting there are numerous developments that are shaping the market. As the market grows gift card companies must stay up-to-date with these gift card industry trends to stay competitive and meet the needs of their clients.