Many consumers don’t do their research when it comes to credit cards, according to U.S. News & World Report, the global authority in rankings and consumer advice. In its most recent survey of credit card holders, U.S. News found that nearly half of respondents didn’t research their card before signing up. Further, more than 50% of those surveyed don’t regularly shop around for better cards.
Tag: gift cards
Gift cards have become a go-to item for shoppers who are in a hurry or just don’t know what to buy for that special person on their list. It turns out that gift cards are also growing as must-have items for businesses who want to reward employees or curry favor with other businesses. This trend means that marketers may be shifting some of their gift-card promotions to the B2B market.
A new consumer spending survey shows that 81.1% of shoppers will purchase at least one gift card and will spend an average of $156.86 on gift cards this year. More than one in five (21.1%) gift givers say they’ll buy gift cards because they are easier and faster than traditional gifts. Total spending on gift cards will reach $28.79 billion.
Although the total gift card market and prepaid card market dropped in 2009, analysts expect revenue growth in 2010. The tighter credit standards are the primary drivers behind card market improvement as consumers shift to a pay-now or pay-before mindset. A Javelin Strategy & Research study suggests that marketers can increase sales by targeting specific businesses and demographics with prepaid and gift card products.
As the holiday shopping season winds down, marketers are looking at what strategies they’ll employ in the future. This fresh focus coincides with the general trend of consumers shopping more online. One category that has seen growth recently is digital gift cards. The chief advantage of this form of gift giving, according to the 2009 Pre-Holiday Online Shopper Gift Card Survey, is convenience.