Digital Gift in North America & Europe: Presentation to UKGCVA Data-driven insights that empower business.

Digital Gift in North America & Europe: Presentation to UKGCVA

Data-driven insights that empower business

What we will talk about today

• Some general gift card research (UK Based)

• What consumers in 5 countries think of eGift- Experiences- Satisfaction- Reasons why they have not purchased

• UK retail gift cards consumers would like to receive for Christmas

Digital Gift in North America & Europe

Consumer Gift Card Data

Study Methodology

• Consumer surveys undertaken in September 2013:- United States- Canada- United Kingdom- France- Germany

• 4,800 respondents – 1,015 in the UK

• Low purchase levels of eGift in the UK, France & Germany - less than 15% total across the three countries.

• Higher purchase rates in Canada and the US – 10%+ in each


General: Where are people likely to purchase

Unlikely Neutral Likely

The store associated with the card 4.5% 16.4% 79.0%

Grocery stores 30.0% 26.1% 43.8%

Pharmacies 54.1% 25.4% 20.5%

Newsstands/Convenience stores 55.7% 26.4% 17.8%

Petrol stations 62.4% 21.8% 15.8%


General Gift cards increase frequency of store visits


Strongly disagree Somewhat disagree Neither Agree nor Disagree

Somewhat Agree Strongly Agree

4.1%

7.9%

28.2%

39.2%

20.5%

Gift cards I receive increase how often I visit the store as-sociated with the card

General: What about interest in Open Loop?


Strongly disagree Somewhat disagree Neither agree nor disagree

Somewhat agree Strongly agree

3.0%5.8%

24.9%

37.9%

28.5%

I would rather purchase an open loop gift than closed loop

eGift Conclusions

• High levels of satisfaction for both buyers and receivers

• Trust in the product financially but…

• …nervousness about eGifts technologically

• Personalisation is absolutely crucial to selling these products

• A huge predominance (20:1) of computer-based over mobile phone-based


eGift: Where are consumers?


Purchase satisfaction experience is very high

Dissatisfied Neutral Satisfied0

10

20

30

40

50

60

70

80

90

100

5.99.9

84.2

5.49.0

85.6

4.3

14.6

81.1

7.1

15.4

77.5

15.6 13.6

70.8

Satisfaction with eGift Card Purchase

Canada US UK France Germany

Percentage


Purchase Satisfaction Experience - UK

Very dissatisfied

Somewhat dissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfied

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2.3 2.0

14.6

32.9

48.1

UK - Satisfaction with Purchase

Perc

enta

ge


Promoters

Satisfaction with usage was also high

Dissatisfied Neutral Satisfied0

10

20

30

40

50

60

70

80

90

100

4.5 5.2

90.3

5.1 3.8

91.1

5.0 5.2

89.8

7.94.2

87.9

14.1

5.2

80.7

Satisfaction with USING eGift card


Percentage


Usage satisfaction - UK

Very dissatisfied

Somewhat dissatisfied

Neither satisfied nor dissatisfied

Somewhat satisfied

Very satisfied

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2.8 2.2 5.2

21.6

68.2

Usage Satisfaction - UK

Perc

enta

ge


Promoters

The Power of Promoters

Due to the expense and the fragmented nature of traditional

communications channels, +WOM is essential!

• Consumers, influence each other – by talking to each other or observing.

• Closer relationships the more likely to talk about experience.


Email is the dominant delivery mechanism

Email Mobile Phone Social Media0

10

20

30

40

50

60

70

80

90

100 95.1

.74.2

95.1

2.0 2.8

95.2

3.3 1.5

93.9

4.61.5

97.1

2.4 0.4

Receipt of eGift was via…


Percentage


UK: Interest in using mobile phone

Not at all in-terested

Not Interested Neither interested or disinterested

Slightly interested Very interested0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%31.33%

17.33%

23.17%

20.0%

8.17%

UK: Interest in sending and receiving gift vouchers on a mobile phone

Online redemption dominant

Online In-store Not used0

10

20

30

40

50

60

70

80

90

100

79.0

14.7

6.3

76.1

19.8

4.0

86.0

10.43.6

75.6

20.3

4.1

78.0

16.7

5.3

eGift Redeemed


Percentage


So how do we…


Technology Adoption Model - Roadmap

Re-useAwareness TrialAvailability

Where can I actually buy these products?

What are they and what do they actually do?

Is it useful to me?

How easy is it for me to use?

Can I really trust it?

It’s so good I use it all the time. And I tell everybody.(who cares to listen)


It’s not awareness of what they are and how they work…

Canada US UK France Germany0

10

20

30

40

50

60

70 67.1 65.9

57.5

43.3

58.7

19.422.7

28.1

34.2

25.0

13.5 11.414.4

22.5

16.3

Why No Purchase?Do Not Understand How eGifts Work

Disagree Neutral Agree

Percentage


The crucial step here is trial

Trial

Intention to Use

Ease of Use

Trust

Usefulness


Safety is an issue – more so in Europe


10

20

30

40

50

60

70 65.6

60.3

53.5

36.3

45.0

23.9

33.037.0 35.3

28.7

10.56.7

9.5

28.426.3

Why No Purchase?eGifts are Not Safe


Percentage


What concerns people is technology…


10

20

30

40

50

60

32.837.5 37.0

30.5

43.7

25.421.6

29.5 28.925.0

41.8 40.9

33.5

40.6

31.3

Why No Purchase?Afraid eGift will Not Work at Check-out (Physical or Virtual)


Percentage


…including recipients losing the eGift


10

20

30

40

50

60

35.840.9

31.534.2

42.4

19.4 19.3

30.8 28.9

37.5

44.839.8 37.7 36.9

20.1

Why No Purchase?Afraid eGift will get Lost on Recient's Phone or Computer


Percentage


…and that the gift being delivered to the wrong person


10

20

30

40

50

6050.7 48.8

43.137.9 40.1

26.9 25.0

34.2

26.2

33.6

22.426.2

22.7

35.9

26.3

Why No Purchase?Afraid eGift will be Delivered to Wrong Person


Percentage


Personalisation is another concern


10

20

30

40

50

60

26.9

44.3

28.8

21.4

32.5

17.9 19.3

31.5 31.6 31.3

55.2

36.439.7

47.0

36.2

Why No Purchase?eGift Not Personal Enough


Percentage


And finally…


ASDA

Waterstones

Next

Debenhams

John Lewis

Tesco

Boots

Argos

M&S

Amazon

0% 10% 20% 30% 40% 50% 60% 70%

13%

14%

17%

18%

18%

18%

27%

28%

29%

58%

Retailers UK consumers would most like to receive a gift card from for Christmas 2013 – Top 10

N:815: Consumers could chose up to 5 retailers they would like to receive a gift card from for Christmas

Questions

Email:

[email protected]

mailto:[email protected]

Digital Gift in North America & Europe: Presentation to UKGCVA Data-driven insights that empower business.

Documents

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