Around Christmas time, what comes to most people's minds when they have to get a present but have no idea what to get, is to buy a gift card. In fact, nearly three-quarters (73.4%) of 7,172 adults surveyed for the National Retail Federation’s Gift Card Spending Survey published in November said they would buy at least one gift card, and that 58,8% enjoy receiving one for Christmas. It's convenient for the customer: everyone can use it, it's a little personalized but not too much, and there is no need to make an effort looking for something that would please (and actually sometimes does not!).
But it is also a VERY good deal for the brands
who sell them; it is a very common marketing operation, which is more than
profitable. Besides, most shops sell their own gift-cards. Indeed, gift-cards
are a way to build customer loyalty, to make sure that there will be future
outlays, and also to get (great) profit margins when the whole amount of the
card is not spent. £1 billion is actually “wasted” every year through gift
cards.
Sometimes, brands even associate to make more
profit. The latest partnership with this goal in mind was the one between
Starbucks and Swarowski for Christmas 2015. They created 3 different cards,
each worth $200: 2 key-chained-sized cards and a bigger wallet-sized one. It is
encrusted with deep blue crystal, but only worth $50, which is a quarter of the
price paid… Nevertheless, the card was soon sold out. The public was very
enthusiastic: “Just handling it makes you feel really special” said one buyer.
The website eBay was even doing a brisk resale trade at prices as high as $295.
Other products and more traditional gift cards were born of this partnership
but the gift card is still the most significant.
If you have received this type of card for
Christmas but you're not satisfied with it, some shops, such as the great
American Target might be able to exchange it, but not for its full value (about
25% less than the original price). But you can also, after this festive season,
let your heart speak and give them as donations. Through GiveaGift (www.giveagifthq.com), consumers with an unwanted gift card can give a donation
from the card’s value to a charity, and then exchange the remaining balance of
their unused gift card for a gift card for that value with a different brand,
with the current range including Amazon, John Lewis, iTunes and Topshop.
Sources :
http://orangemagazine.ph/2015/starbucks-philippines-card-for-the-holiday-season/
http://www.marketwatch.com/story/why-almost-no-one-does-gift-cards-like-starbucks-2015-12-23
http://www.adweek.com/news/advertising-branding/why-starbucks-sold-out-those-200-swarovski-gift-cards-168797
http://www.newswire.ca/fr/news-releases/achats-record-de-cartes-starbucks-prevus-la-veille-de-noel-563226771.html
http://www.myfoxboston.com/news/how-to-trade-in-your-unwanted-gift-cards/12855293
http://www.fundraising.co.uk/2015/12/16/giveagift-turns-unwanted-gift-cards-into-donations/
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