A new study by First Data has found that an average UK consumer spends £41 more than the original value of their gift card.
The finding is a part of the fintech company’s first UK Prepaid Consumer Insights Study.
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The study also stated that around 34% of gift card holders will visit a store, which they would have skipped otherwise.
The study was built on survey data encompassing more than 1,000 customers across four different age groups.
First Data executive vice-president, Global Financial Solutions co-head and EMEA head John Gibbons 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 programmes to social media promotions and targeted marketing campaigns, both physical and digital gift cards offer valuable incentives to both businesses and consumers.”
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By GlobalDataThe study has found that 44% of UK consumers are likely to visit a store more frequently after receiving a gift card. Around 74% of the consumers are likely to spend more than their gift card value, the First Data study further identified.
The most commonly visited stores for purchasing gift cards are department stores (30%). It is followed by food supermarkets or grocery stores (26%) and online-only merchants (17%).
Additionally, the UK Prepaid Consumer Insights Study results demonstrate an increasing propensity among customers to use digital currency.
Last year, 55% of consumers purchased plastic gift cards, while the remaining 45% bought digital gift cards. The shift towards digital gift cards is gradually increasing and is expected to continue, the study added.
