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What are the different types of gift card customers?

What are the different types of gift card customers?

What are the different types of gift card customers?
By
Emilie
|
11/17/23

The gift card market is constantly evolving, driven by a diverse range of buyers with distinct purchasing behaviors. From impulsive shoppers to meticulous planners, and pragmatic consumers looking for simplicity, each profile has unique expectations and motivations. Understanding these typologies allows brands to tailor their offerings and marketing strategies to maximize the impact of gift cards, both in B2C and B2B.

Gift Card Enthusiasts: regular and informed buyers

Gift card enthusiasts are consumers who have fully embraced this purchasing method as part of their regular shopping habits. A significant 44% of 25–34-year-olds and 50% of 35–44-year-olds actively use this service, purchasing an average of six gift cards per year.

What attracts them the most is flexibility and personal enjoyment. They appreciate the freedom of choosing their own gift and offering the same convenience to their loved ones. Speed and practicality are also key factors—these consumers seek a seamless shopping experience, with an easy selection, payment, and delivery process.

Personalization plays a major role in their purchasing decision. They spend 30% to 40% more if the gift card is customizable (photo, message, video). Additionally, they favor e-gift cards, which provide a smoother and more adaptable experience for their digital lifestyles. Finally, 74% of gift card enthusiasts purchase through specialized gift card platforms.

How to reach gift card enthusiasts?

  1. Leverage targeted promotions – Offer exclusive deals on gift cards to attract these savvy buyers.
  2. Create personalized marketing campaigns – Make gift cards more appealing with compelling messaging and eye-catching visuals aligned with your brand identity.
  3. Optimize your online presence – Ensure your gift cards are available on popular platforms and that the online purchasing journey is seamless.
  4. Collaborate with influencers – Partner with influencers who can promote your gift cards to their audience, increasing visibility and engagement.
  5. Adopt innovative technologies – Integrate advanced customization options and digital formats to meet the expectations of gift card enthusiasts.

Pragmatic Buyers: speed and efficiency first

Pragmatic buyers choose gift cards primarily for their practicality. They fall into two subcategories:

  • The busy and time-pressed – Mostly aged 40–55 (62%), they want an efficient gift without wasting time.
  • The cautious givers – Mainly aged 55–64 (64%) and 65+ (75%), they prefer gift cards to avoid making the wrong gift choice.

This audience is drawn to the digitalization of gift cards, which simplifies their shopping experience. Online purchases and instant e-gift card delivery perfectly meet their need for quick solutions.On average, they purchase four gift cards per year, and more than 25% plan to buy them for upcoming occasions.How to reach pragmatic gift card buyers?

  1. Ensure visibility – Make sure the gift card service is easy to find and access.
  2. Offer flexible amounts – Provide gift cards in various denominations to suit all budgets.
  3. Optimize for mobile – Ensure a smooth purchasing process for smartphone users.
  4. Enhance convenience – Create a quick, one-page checkout process with minimal steps.
  5. Provide special offers for key occasions – Offer promotions for specific events (weddings, housewarming, graduations).
  6. Highlight ease and speed – Emphasize the speed and simplicity of purchasing and sending digital gift cards in marketing campaigns.

Apathetic buyers: a default choice driven by their inner circle

Some consumers have no strong opinion about gift cards—they are neither for nor against them. However, they still purchase an average of five gift cards per year. How is that possible? They are open to receiving them but primarily buy them when their relatives request them—especially their children.

While they tend to follow a traditional purchasing process, such as visiting a physical store to buy a gift card, they can adapt their behavior based on their loved ones’ preferences. For example, their children, who are often millennials, favor e-gift cards (69%).

How to attract apathetic buyers?

These consumers value a simple and quick purchasing experience to minimize friction. They also appreciate convenient features, such as delayed delivery scheduling.

For brands, it is also effective to communicate with the close circle of apathetic buyers—especially millennials, who can influence their purchasing decisions.

 

Indecisive buyers: seeking a safe choice

Indecisive buyers want to give a meaningful gift but fear making the wrong choice. Instead of taking the risk of purchasing a product that may not be appreciated, they prefer opting for a gift card.

This buyer profile typically purchases one to two gift cards per year, mainly for major occasions like birthdays or Christmas. Their priority is ensuring the recipient's satisfaction.

How can brands attract indecisive buyers?

  1. Flexible denominations – allow customers to select an exact amount, down to the last euro, to fit their budget and align with the product they’re considering.
  2. Enhanced visibility – feature gift cards prominently under product listings, in the main navigation menu, and in curated gift recommendation sections.
  3. Highlight key benefits – clearly communicate the advantages of gift cards, particularly the customization options that help create a unique and memorable present.
  4. Optimized customer experience – offer customization options such as personalized messages, diverse designs, and attractive packaging.
  5. Special promotions and offers – encourage purchases with incentives like bonus value during specific periods or discounts on future purchases.

 Last-minute shoppers: a prime target for e-gift cards

Last-minute shoppers make their purchases just days—or even minutes—before the special occasion. This is a critical segment, as 46% of digital gift card sales during the holiday season occur between December 18 and 25. That means nearly half of e-gift card revenue is generated in the final days leading up to Christmas.

Mobile is their preferred channel, and they seek an ultra-fast checkout process without the need to create an account or complete unnecessary steps.

Who are last-minute buyers?

  • 40% are between 15 and 25 years old.
  • 34% are between 25 and 35 years old.
  • 68% planned to purchase a gift card but intentionally waited until the last minute.

How can brands attract last-minute buyers?

  1. Ensure mobile compatibility – the majority of last-minute shoppers buy on mobile devices.
  2. Streamline the checkout process – offer a fast, account-free, one-page checkout process with clear steps for personalization and quick, secure payment.
  3. Make gift cards easily accessible – ensure gift cards appear in search results, on your e-commerce site, and within gift suggestion lists to keep them top of mind.
  4. Leverage email marketing – send reminder emails with urgency-driven subject lines to prompt purchases.
  5. Run paid advertising campaigns – use social media ads emphasizing guaranteed delivery and fast e-gift card checkout.
  6. Offer last-minute promotions – boost urgency with special deals, such as 20% off e-gift cards until december 24th.

Early buyers: organized and strategic shoppers

Some consumers prefer planning everything in advance—including their gifts. They enjoy giving presents, maintain a well-prepared list of ideas, and actively browse online and in-store for the best deals. These shoppers are highly price-sensitive and thoroughly compare options before making a purchase.

How to convert early buyers to gift cards?

Brands can attract these shoppers by running promotional campaigns or launching special offers. For example, offering a bonus gift card with every purchase encourages early buyers to not only buy a gift but also receive a reward for themselves—one they can spend as they please.

B2B buyers: a rapidly expanding market

Gift cards are increasingly appealing to businesses, representing a growing share of the market. While employee representative committees (CSEs) remain the largest buyers, marketing agencies and public institutions are gaining significant traction.

Companies use gift cards for various purposes:

  • Employee rewards as part of corporate benefits.
  • Sales incentives and customer loyalty through incentive programs.
  • Motivating sales teams with non-monetary bonuses.

The 5 key b2b buyer segments

  1. Employee benefit and incentive:
    • The largest segment, accounting for one-third of all corporate orders.
    • Physical gift cards remain the preferred option, but digital cards are gaining traction.
  2. Marketing agencies:
    • A fast-growing segment placing large orders, primarily for digital gift cards.
    • Used extensively in nationwide promotional campaigns.
  3. Associations and public institutions:
    • Use gift cards for events and rewards.
    • Favor digital cards, with a surge in orders at the end of the year.
  4. Construction, import/export, and chemical sectors:
    • High demand, mainly for employee rewards.
    • Peak orders around christmas, but consistent demand throughout the year.
  5. Consulting firms:
    • Less frequent orders, but typically for high-value gift cards.
    • Prefer physical cards and premium gifts.

Opportunities for brands:

  • Engage with CSEs and HR departments by developing a seamless self-service platform.
  • Target marketing agencies, which integrate gift cards into promotional campaigns.

Resellers: a strategic lever to maximize gift card impact

The reselling of gift cards relies on a network of partners, commonly referred to as distributors or third-party resellers. These resellers play a crucial role in promoting single-brand gift cards and contribute significantly to program revenue—nearly 70% of total sales.

By incorporating gift cards into their offerings, platforms such as HR benefits providers, loyalty programs, cashback platforms, and B2B/B2C marketplaces achieve two key objectives:

  1. Enhancing their reward catalog with a desirable and versatile option.
  2. Providing a flexible alternative tailored to their end customers.

How to strengthen partnerships with third-party distributors?

  1. An attractive and high-performance product:
    • Omnichannel gift card (physical & digital).
    • Customizable and divisible amounts.
    • Visually appealing designs.
    • Long validity period for increased flexibility.
  2. Seamless technical integration:
    • A robust api ensuring smooth and effortless integration.
  3. Reliable support and assistance:
    • Fast and efficient customer service to resolve issues quickly for end users.
  4. A competitive and incentivizing commercial policy:
    • Attractive commission structures to encourage distributors to actively promote the gift card.
  5. Strong brand awareness and reputation:
    • A well-known and trusted brand image to enhance credibility and desirability.

Gift cards are not limited to a single buyer profile but cater to a wide variety of consumers and businesses, from occasional shoppers to loyal corporate clients. Each segment has distinct expectations and motivations, making a differentiated strategy essential to maximize the impact of gift card programs.

Ready to increase the revenue generated with your gift card?