InComm Survey: How Retailers Can Tap into Prepaid Popularity with Themes
With graduation and wedding season upon us, InComm is advising retailers to take advantage of these occasions, among others, and improve sales by offering themed open-loop gift cards and promoting them with corresponding displays.
Approximately 72 percent of consumers said they would consider giving gift cards for graduations and 55 percent of respondents reported they’d give gift cards for weddings, according to a new survey about open-loop prepaid gift cards from InComm, a prepaid product and transaction services company. Only birthdays topped these two occasions at 90 percent. The survey also found that 100 percent of respondents gave at least one gift card last year and 92 percent reported giving two or more.
“Retailers would benefit by offering occasion-themed gift cards,” says Brian Parlotto, executive vice president, sales and marketing, at InComm. “They enable consumers to choose a card design that correlates with their gifting event, such as a birthday or graduation, which makes the gift extra special. We help our retailers promote gift cards around various events by offering a mix of card designs plus occasion-themed point-of-purchase displays,” Parlotto tells Paybefore.
More than 80 percent of respondents said they appreciate receiving a gift card for their birthday, followed by 42 percent as a “thank you,” nearly 40 percent for graduation and 37 percent as a wedding gift, according to the survey released May 24.
The survey also discovered that millennials have found additional occasions to give gift cards. Half of consumers between the ages of 25 and 34 reported giving a gift card when friends have a baby and 29 percent of millennials give gift cards when friends or loved ones buy a new home.
The survey was conducted May 2016 among 520 respondents to gauge their attitudes about giving open-loop gift cards for special occasions and life events—and when they’d like to receive them.
This also is the season consumers go on vacation and many are sure to pack gift cards because of their convenience, security and help with budgeting. More than half of respondents said they’d use a prepaid card anywhere it was accepted. Sixty-five percent would consider using prepaid for shopping and dining and 61 percent would use a prepaid card at gas stations, according to a survey InComm conducted last year.
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