They do. Actually, about 72% of them lift 20% more than their face value according to industry statistics.
So, what exactly is lift?
Lift is the amount the consumer spends on top of the face-value of the card. Overspending has actually become the new norm with 75% of consumers spending an average of $27.74 more than the initial value of their card, according to a survey conducted by FirstData.
Why does this matter?
The growing trend of gift cards and digital gift cards create enormous opportunity for retailers to strategically market their products. With this knowledge in mind, marketing approaches like auto-reloads, loyalty and promotions have the ability to reach more customers than before, and also drive them to purchase more products simultaneously.
But why do customers end up spending more?
When customers purchase items with a gift card, they already feel like they’re in some way getting a deal. Adding loyalty offers and promotions to the mix creates even more of an added value. This can be in the form of points, gifts with purchases or even an extra percentage off. All of these add-ons drive customers to purchase more than the face-value of their card. This presents an impression that they’re getting so much more than what they are paying for up-front.