2019 Small Business Gift Card Study Highlights Benefits to SMBs
10 October 2019 - 11:30PM
Business Wire
Study finds 74% of consumers regularly buy gift
cards from small businesses
90% of consumers who receive a gift card from a
small business they have never visited said they would shop at that
business and return in the future
Eighty-eight cents may have more value than you think. According
to the 2019 Small Business Gift Card Study, released today by
Fiserv, small business owners can expect consumers holding a gift
card worth less than a dollar to visit their store to redeem it. As
small businesses jockey to increase foot traffic and engage
customers in an increasingly competitive market, the study explores
how consumers are using gift cards at small businesses, and
highlights the benefits gift cards can deliver.
Conducted in the spring of 2019 and originally commissioned by
First Data, now Fiserv, the study gathered insights from adults
ages 18 to 76 across two distinct groups: 1,084 consumers, and 628
individuals who own or manage a small business in the U.S.
“Small business owners have a tremendous opportunity to boost
revenue, foster customer loyalty, and strengthen their brand by
investing in gift card programs,” said Dom Morea, senior vice
president, Prepaid Solutions, Fiserv. “Gift cards are not only a
potential growth engine for small business owners, they have become
increasingly popular among consumers.”
Small Businesses, Big Benefits
Gift cards aren’t just for big businesses. In fact, 74% of
consumers surveyed said they regularly buy gift cards from small
businesses, underscoring that gift cards have utility at coffee
shops and corner stores and that customers expect them to be
available for purchase and redemption. The benefits of gift cards
can be significant, helping small businesses attract new customers
and build relationships with repeat shoppers. According to the
study:
- 90% of consumers who receive a gift card from a small business
they have never visited said they would shop at that business and
return there in the future
- 56% of surveyed consumers join loyalty or frequent shopper
programs at small businesses. The same group said gift cards are
the preferred way for their loyalty to be rewarded
- Nearly four out of five consumers surveyed said if they have a
gift card valued at 88 cents, they’ll visit the store to redeem
it.
Whether Giving or Receiving, Dining Wins
Consumer opinions can vary widely, but when it came to
determining which business types they’d most want to give or
receive a gift card from, they tended to agree. The most desired
business types for small business gift cards were, in order of
popularity:
- Casual dining restaurants
- Coffee shops
- Specialty services (such as nail salons and barber shops)
Digital vs. Physical
While digital gift cards continue to grow in popularity,
physical gift cards are still preferred amongst consumers. Of those
surveyed, 60% said they prefer physical gift cards or paper
certificates to digital versions.
Among the 40% of consumers who said they prefer a digital gift
card, the main reason was because they are quick and easy to send
and receive. Other benefits of digital cards are their availability
on smart devices, and the ability to easily check the card
balance.
Viewpoints from Small Businesses
Small business owners surveyed were clear that simplicity and
efficiency of implementation and operations were critical elements
to a successful gift card program:
- The ability to integrate with a point-of-sale platform, such as
Clover®, a cloud-based point-of-sale solution from Fiserv, was the
top benefit to small businesses
- One-third of businesses without a gift card option would add
one if they thought it was easy to implement.
Additional Resources
2019 Small Business Gift Card Study Infographic
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and
information in a way that moves the world. As a global leader in
payments and financial technology, the company helps clients
achieve best-in-class results through a commitment to innovation
and excellence in areas including account processing and digital
banking solutions; card issuer processing and network services;
payments; e-commerce; merchant acquiring and processing; and the
Clover cloud-based point-of-sale solution. Fiserv is a member of
the S&P 500® Index and the FORTUNE®500 and is among the FORTUNE
Magazine World’s Most Admired Companies®. Visit fiserv.com and
follow on social media for more information and the latest company
news.
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version on businesswire.com: https://www.businesswire.com/news/home/20191010005244/en/
Media Relations: Chase Wallace Director, Communications
Fiserv, Inc. +1 404-890-2132 chase.wallace@fiserv.com
Additional Contact: Ann Cave Director, External
Communications Fiserv, Inc. +1 678-325-9435 ann.cave@fiserv.com
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