The demand for instant gratification is everywhere, we are becoming a generation of Veruca Salts, “I want it now!” Call me now, send it now, buy it now. We want, actually expect, to find the services, products, and information that we want quickly and easily.
Our reliance on immediacy and digital mediums are changing the way we shop, and shaping a new shopping trend: E-gift cards and digital gifting. According to a recent National Retail Federation study, gift cards overall are expected to grow at an annual rate of less than 6%, but digital cards are experiencing annual growth of 200%.
Studies from the National Gift Card Association and Bankrate are pointing to Millennials and their need for immediacy (one day we’ll get credit for a good quality, right?) for the growth in digital gifting.
A few reasons why electronic gift cards appeal to Millennials:
- It allows consumers to buy on the fly (forgot to buy a birthday gift?)
- Millennials don’t want to give up wallet real estate
- According to a new Bankrate.com study, part of the reason may be that Millennials are more than twice as likely to lose traditional plastic gift cards as older adults (tsk tsk)
- It allows for personalization; many digital gift cards can be customized with a personal message, photo or video, making them a perfect fit for a social media immersed generation.
While growing in popularity, electronic gift cards are still a small part of the overall market. Just eight percent of the $85.8 billion spent on gift cards in 2013 was for electronic gift cards, according to the Mercator Advisory Group.
We want to know your thoughts. Leave a comment below and let us know if you are shifting to e-gift cards, sticking with plastic or prefer cold-hard cash.
Written by Kelly Woolsey
JNR Incorporated is a results-based, globally recognized leader that specializes in creating custom travel, meeting, event, prepaid card and merchandise programs that motivate, engage and inspire the employees, customers and channel members of our clients. We have over 30 years of experience working with Fortune 500 companies of many diverse industries. Our programs are tailored to fit the specific needs of marketing, sales, management and human resource professionals. The unique solutions we apply are measurable and proven to increase performance, loyalty and revenues.