Gift cards generated $405.17 billion globally in 2022. Getting them into the hands of Gen Z—which now boasts $360 billion in spending power—holds incredible potential to drive revenue and brand discovery for retailers. 

Gen Z And Gift Cards: A Profitable Pairing

Why is this duo a match made in retail heaven? For starters, gift cards epitomise convenience and flexibility, two benefits Gen Z particularly embraces. Secondly, these consumers drive typical gift card benefits to the max. 

How? They spend beyond card value amounts more than any other demographic. Holiday gift card use has also grown the fastest among Gen Z, who planned to spend 57% more on them during the 2022 holidays versus 2021, the largest increase throughout all age groups.

Compared to older shoppers, Gen Z is more likely to discover a brand thanks to a gift card, with 23% visiting a company online or in-store for the first time after receiving one. 

But old marketing strategies won’t cut it with these new shoppers. We’ll show you how to tailor your gift card program to this demographic based on the latest consumer research and trends.

How Retailers Can Adapt Gift Card Strategies Around The Gen Z Consumer Profile

Wooing Gen Z with gift cards requires brands to recognize what makes them fundamentally different to other generations. Here’s what to keep in mind.

Adjust Gift Cards To Flexible Customer Journeys

Being the first generation to grow up in a totally digitalised world, it’s unsurprising that today’s youngest consumers are avid online shoppers. Here in Europe, 75% of Gen Z shop on mobile, more than any other generation. 

However, recent research shows 24% of these customers are actually shopping online less post-pandemic, the only age group to demonstrate such a decrease. 

In fact, not only is in-store shopping Gen Z’s preferred way to buy, they also visit retailers more often than any other demographic, with 59% shopping at a physical location once a week.

As much as they love hitting the shops in person, most wouldn’t consider doing so without help from their smartphone. Having embraced hybrid shopping more than any other demographic, these consumers expect a seamless integration of in-store and online shopping in each customer journey. 

So what can retailers do to successfully sell gift cards to these shoppers online and in-store? 

Promote Gift Cards Along Common Gen Z Touch Points

The common touch points along Gen Z’s path to purchase act as an excellent guide to where retailers should focus on promoting their gift cards.

Social media

An obvious place to start is social media, as this demographic reports the highest amount of time spent there. Unsurprisingly, this is also where Gen Z discovers products most often (71%), with the following mediums leading the way: 

Source: Hubspot

• Short-form video/reel (41%)
• Ads/sponsored content (36%)
• Feed post (32%)
• Social media shop (29%)
• Story post (25%)
• Influencer (25%)

Check out some ideas for promoting your gift cards through Gen Z’s favourite way to find new brands.

On their feed

Whether it’s through a video, photo or even a simple text post, getting your gift cards in front of your followers with shareable content can drive gift card uptake and brand awareness. Consider the following tactics for getting the word out:

• Hold a raffle. Ask followers to comment, like, tag a friend, and share one of your posts to be entered to win a free gift card. 
• Create a UGC contest. Tell users to post their favourite photos/videos featuring your products for a chance to win a gift card. 
• Don’t forget hashtags! One tiny move, so much potential: #giftcard brings up over 1M results on Instagram. 

In your business profile

Any Facebook business page can add a ‘buy a gift card’ button to the CTA in its profile. The same can be done on a retailer’s Instagram bio, too. Once clicked on, users are taken directly to checkout. Be aware that this does require a short setup through a third-party payment gateway.

Through a story

Another simple way to promote gift cards is through an Instagram story. This works particularly well for flash sales or limited-time offers, as stories are only accessible for 24 hours. Simply paste the link to your payment page into the story to take viewers to checkout in one click.

Ads

Despite hating them, Gen Z reports ads introduce them to new products more than any other method. Outside of social media feeds, stories, and shops, ads on Youtube and music streaming services (Spotify, etc.) were the most successful ad placements for reaching them.

Another huge plus for ads is that they can be adjusted to target specific segments of any demographic. Customise yours to target audiences based on products or features they’re interested in followed up by a gift card offer. 

Email

In the digital hierarchy of Gen Z relevance, email may seem a bit…archaic. And yet, its reputation as the most effective way to sell online holds true with both older generations and today’s youngest consumers. 

However, promoting gift cards (or anything) via Gen Z’s inbox requires a bit of adjusting. Here are a few ways to do it right. 

✗ Don’t oversell. Gen Z equates repetitive sales emails with spam.

🗸 Weave gift card promotion into your brand story. Keep subscribers up to date on which causes your brand supports and consider dedicating a percentage of gift card proceeds to it.

✗ Don’t go overboard with newsletters. TL;DR could be this generation’s slogan. Focus on keeping any communication short and sweet. 

🗸 Do personalise it. Go beyond pasting their name into the greeting and show them relevant promos, follow-up after purchases, and remember their birthdays with a gift card offer. 

Website

Whether it’s via social media, email, or a Google search, sooner or later Gen Z will show up on your business website—and they had better like what they see. Of all consumers, these shoppers have the lowest tolerance for slow load times or inefficient UX design. 

Make it easier for them to purchase/redeem gift cards on your site with the simple following tips:

• Add a ‘gift card’ button to your main menu
• Align product relevance with user analytics to feature relevant items on the homepage
• Use gift cards as an incentive for signing up to your mailing list with opt-in pop-up forms

In-store

Just because Gen Z prefers shopping in-store, doesn’t mean brands can sit back and expect sales once they enter. Rather, you’ll need to strategically place and promote gift cards, as well as give careful consideration to how Gen Z shops. 

While customer service matters to them, (25% claim they’d abandon a purchase following a poor in-store encounter), how Gen Z defines a satisfactory in-store experience differs. 

For example, they are the least likely to seek recommendations from a sales associate, with just 7% claiming this was helpful. They feel confident in doing their own product research and the ability to navigate and easily locate items tops their list of in-store features (37%).

As true hybrid shoppers, they also expect a smooth cohesion of online and in-store shopping. Once an added bonus, these services are becoming increasingly expected among Gen Z.

• In-store returns for items bought online (45%)
• Buy Online Pay In Store (BOPIS) (33%)
• Personalised offers sent to mobile while in-store (16%)

Here are some ways to put this data into practical use to sell more gift cards. 

Make returns a cinch. Despite their reputation for being impulse shoppers, Gen Z is most likely to hang onto gift cards longer than any other demographic. Offering physical or digital gift cards in exchange for returned items (bought online or in-store) encourages these shoppers to visit the store before the return policy expires. 

Source: Pitney Bowes

Driving more in-store traffic with returns improves brand awareness among new shoppers. It also increases the chances of speedier redemption times among these young shoppers. 

Think beyond the checkout counter. As the lines between in-store and online shopping blur, retailers need to assume that a decent number of shoppers are entering their store with zero intention of purchasing then and there. Likewise, stores featuring BOPIS should adjust for shoppers never venturing beyond the pick-up counter.  Promote gift cards in places like: 

• Fitting rooms
• Among merchandise
• Mobile apps via scannable QR codes
• At BOPIS pick-up locations

But definitely don’t forget the checkout counter. More than ⅔ of unplanned gift card purchases happen at the checkout counter (and Gen Z has a penchant for impulse buying). Have gift cards on display at the register and encourage staff to promote them during checkout.

Embrace mobile shopping. Gen Z is the most likely of all consumers to discover a brand with gift cards. Help new customers help themselves by utilising QR codes while shopping in-store. Features like personalised item suggestions, product location, and inventory overview can encourage faster redemptions and return visits. 

Incorporate Gift Cards Into Your Brand Story & Values

What makes Gen Z so unique is their willingness to not only support brands they share values with, but to spend more in order to do so. In fact, 65% are willing to pay 48% more for products by purpose-driven brands.

What most retailers don’t know? Gift cards can act as a tool to support a worthy cause, shape brand identity, and drive revenue without looking like you’re trying. This type of effortless, unforced marketing is exactly what resonates with Gen Z. Let’s dive into the possibilities below. 

Get behind a cause

Altruism is a key characteristic of today’s youngest consumers. Whether or not a portion of their purchase proceeds went towards a charity was among top factors (57%) influencing their buying decisions, third only to price (78%) and product quality (65%).

In addition to charities and other philanthropic foundations, Gen Z wants to know that companies support current issues with their products and policies. Of highest concern among this demographic were racial justice (69%), LGBQT+ rights (50%), gender equality (46%), and climate change (42%). 

Donating a portion of gift card proceeds to charities or organisations fighting for change is a true win-win for retailers and consumers. It aligns your brand identity to Gen Z values and motivates consumers to put their money towards a good cause. 

Consider a gift card facelift

Environmental issues matter more to these shoppers than any generation before it. So much so that 54% of Gen Z will spend 10% more on a product that’s sustainable, higher than any other consumer segment. What does this have to do with gift cards? Unfortunately, a lot. 

Every year roughly 2,500 tonnes of single-use PVC cards are produced—in the UK alone. And consumers have caught on, naming environmental concerns as one of the top 3 reasons they opted for digital gift cards over physical ones. 

Interestingly, Gen Z still prefers physical gift cards slightly more than digital cards. So how can brands ensure they have sustainable options?

Source: Blackhawk Network

Paper gift cards provide an excellent solution for these image-focused consumers. Not only does it allow them to gift loved ones a physical item, it also portrays an ideal brand image to an environmentally conscious demographic and actually costs less than their plastic counterparts.

Reward customer loyalty

Gen Z are officially the least loyal to brands, with 57% stating they’d switch brands after a single negative experience. Product shortages, long delivery times, and glitchy tech can send these fickle consumers shopping elsewhere in an instant. 

While traditional loyalty programs are still lagging in uptake amongst this crowd, price is Gen Z’s #1 purchasing factor and promotions/discounts are the top reason they’ll visit a retailer.  

Make your loyalty program more appealing to young shoppers by offering both physical and digital gift cards which can be redeemed both online and in-store. Here are few ideas:

• Offer a gift card as a sign-up bonus.
• Include gift cards as exclusive, members-only rewards.
• Issue a gift card once program participants reach specific spend amounts.

Gen Z & Gift Cards: Key Takeaways

With the right adjustments and updated strategies, gift cards can help your business tap into the lucrative Gen Z market. Keep these key components to reaching them in mind.

Embrace hybrid shopping

Gen Z’s shopping habits are (literally) all over the place. Meet their expectations by promoting your gift cards everywhere and facilitating redemption with seamless omnichannel operations.

Make it personal

This demographic despises generic, gimmicky marketing more than anything else. When promoting gift cards through their inbox or offering product suggestions via mobile in-store, take time to customise your approach and watch your gift card program grow.

Add substance to your brand story

Whether they’re financing a good cause or promoting sustainability, gift cards can send the right message to Gen Z to improve brand awareness, foster customer loyalty, and drive revenue. 

Meet Glascard: Your Brand’s Sustainable Gen Z Ambassador 

Attract today’s youngest consumers and reinforce your sustainable profile—all while saving money on operating costs.

Wait what? A green solution that actually costs your business less? YES.

Glascard paper gift cards help your brand send the right message without saying a word. 

• 100% recyclable
• 100% compostable
• 100% biodegradable

A customised logo, vibrant plant-based inks, and sturdy recycled paper come together to create a gorgeous look and earthy feel in the hands of your eco-conscious customers. 

And the best part? Ditching your single-use plastic cards saves your brand up to 40%. 

Revamp your look and capture more revenue in 2023.

Reach out at hello@glascard.ie