The manner of giving is worth more than the gift… By Aurore Bourgois

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/

Aurore wants to work in Marketing...