Companies are looking for new ideas to implement into gift cards to make them more appealing to the user, and make them want to spend more.
Receiving gift cards this holiday season will become more exciting as retailers and companies make them more appealing. Not only designs but also to make users spend the whole amount on the card. Over 80% of shoppers are seen to purchase gift cards compared to last year’s 77.3%. The National Retail Federation expects an increase from last year’s average spending of $145.61 to $155.43, and to reach $27.8 billion, the highest since 2007.
But TowerGroup estimated that at least 10% of the gift card value remains unused which amounts to about $3 billion. This prompted Del Currie and Lou Corbo to launch Moola Street card on November 6. Initially, the buyer will only need to pay 10% of the card value but can gift a card containing 10 times that value or a $100 gift card for $10. The buyer is only required to pay the full amount if the recipient uses the card within 3 months on moolastreet.com or converts the card into retailer or restaurant cards from Amazon.com, Target, Macy’s or Subway. Up to three cards may be converted. Moola CEO Del Currie said promotions haven’t started heavily yet they have received many orders and Website traffic has been good.
Recipients can buy what they want but with games, lights, music and some toys incorporated; the card is also a gift on its own. Target’s many gift card offers may be redeemed online and from its stores. The company has also offered smartphone mobile cards since 2010. Financial and retail president Terry Scully said this year, Target’s cards include one with Lego pieces. Recipients often spend more when redeeming gift cards hence retailers offer them especially with big uses happening after Christmas and most are redeemed within a year from issuance date, added Scully.
Another offer coming from GoalMine effective December 19 is the use of gift cards for investing in funds such as mutual and FDIC-insured savings accounts. Daily, up to 10 gift cards starting at $25 may be redeemed. For cards up to $50 in value, the first redemption is entitled to an up to 150% of its value then the rest is based on card’s market value set by Plastic Jungle which offers 35% off on GCs bought online up to 92% of face value. Popular Tartget and Wal-Mart cards with winter scenes made by American painter Thomas Kinkade are offered by PlasticJungle with some of the lowest discount rates. Marketing vice president Kristin Morse said this year’s company growth was triple-digit.
With card sales potential, there were over 600 pages of cards for sale on eBay on Monday which included those from Home Depot, Best Buy, Amazon.com, Sears unit Kmart and Macy’s with different offers of face value discounts.
