The market for gift cards has seen rapid growth since the past few years. According to a report from Persistence Market Research the world market for gift cards is predicted to hit $1,210 billion in 2027. This is in part due to changes in consumer behavior and the growth of the internet-based shopping. This article will look at some of the newest trends in the world of gift cards.
1. Personalization
Personalization has become a huge trend in the world of gift cards. Customers want to present gifts that are distinctive and personalized for the person receiving. Companies selling gift cards respond to this trend by providing additional options to customize the gift card. Some businesses allow customers to upload their own images or designs in order to make a gift card that is personalized. Some also allow customers to personalize the message or select from a variety of card designs.
2. Mobile and digital gift cards
Mobile and digital gift cards have grown in popularity in recent times. Customers appreciate the ease of being able to give gifts instantly by text or email. These gift card industry trends are accelerated due to the COVID-19 epidemic that has made the use of online shopping and contactless payment more essential than ever.
3. Multi-store gift cards and multi-brand cards
A different trend that is sweeping the field of gift cards is the increase in multi-store gift cards and multi-brand ones. These cards let consumers make use of their gift cards in multiple shops or brands which gives them more freedom and choices. This trend is fueled by the rising market share of online stores such as Amazon and Walmart with an array of goods that come from various brands.
4. Gift cards for experiences
Gift cards that are experiential have been gaining popularity in recent years as consumers are looking for ways to provide 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 cards sales grew 40 percent in the year 2019.
5. Sustainability
Sustainability has become a key factor for many people and the industry of gift cards is not an exception. Companies selling gift cards are responding to this change by offering greener alternatives. For instance, some companies provide gift cards that are made of recycled materials or permit clients to give a percentage of the value of their gift cards to a charitable organization or environmental charity.
6. Virtual events and gifts
The COVID-19 pandemic has resulted in an rise in virtual events and giving gifts. Businesses are currently offering virtual gift cards which can be used to purchase events and experiences online like virtual cooking classes, or wine tastings. This trend will likely persist regardless of the pandemic because more people are at ease using virtual experience.
7. Rewards and loyalty programs
Companies selling gift cards are now offering loyalty and reward programs to encourage frequent purchases. These programs may include things such as discounted prices, shipping for free or special offers only for customers who are members. Reward and loyalty programs may help companies that sell gift cards build customer loyalty and boost the number of customers who return to their business.
8. Personal finance tools and budgeting tools
In addition, some gift card companies offer 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 mobile apps that let users check their balances on gift cards as well as transactions history, as well as budgeting tools to help customers keep track in their budgets.
In the end the gift card market continues to evolve to meet the evolving demands and preferences of customers. From personalized as well as digital gift cards, to the sustainability of gifting and experiential gifts there are numerous developments that are shaping the market. As the business expands the gift card industry must remain at the forefront of these developments to stay competitive and meet the needs of their clients.
