Nowadays, it’s impossible to increase business revenues without considering consumer trends related to millennials. Representing a large and diversified pool of clients, this generation has important purchasing power. Modern companies must target this demographic by developing focused marketing and branding strategies to reach this group effectively. As a baseline, these consumers expect digital loyalty programs, having been around them since childhood. Gift cards are a redemption option of choice to attract and retain a group that views participation in loyalty programs as the norm.
The Familiarity of Gift Cards
Even though consumer trends evolve, and millennials have access to a wide variety of purchasing options and methods, one trend has persisted. This segment of the population appreciates rewards programs and absolutely loves gift cards. More than any other group, millennials are active in their loyalty programs, and studies confirm that 82% of them prefer exchanging accumulated points for gift cards compared to any other type of reward. The familiarity of this type of incentive, combined with its simplicity, makes gift cards a sound choice for businesses targeting revenues from the millennial cohort of society.
Retailer Specific Gift Cards
In the past decade, the gift card industry has grown. Trends demonstrate that retailer-specific gift cards (also known as closed loop gift cards) are the most popular, and that people aged 25 to 34 are most likely to procure them . In order to develop a brand that speaks to millennials, retailers must offer this tool to its customers. Furthermore, women constitute the predominant gender relating to these statistics, so companies wanting to attract and retain clients must develop programs that are attractive to this demographic.
The Gateway to Spending
Not only do millennials love and use gift cards, their purchasing habits are also influenced by them. This group rapidly uses this type of commodity after receiving it and goes to physical locations when it’s time to shop. Over 64% of millennial consumers purchase additional items during their outing, from either the store where the gift card originated, or in the surrounding environment. The power of gift cards is undeniable - it shapes millennials’ behaviours and is an indispensable marketing tool for any modern company.
Evidently, gift cards are at the forefront of business growth strategies, whether to reward millennial clients or employees. With the fierce competition in the industry, partnering up with an expert in the field is a safe bet. Contact Gift Card Warehouse today and start offering gift cards right away!