and The Gift Card Network
partnered together to conduct a survey that would take a look at a group of gift card users who are often overlooked: teens and tweens. This demographic, made up of children ages eight to 15 years in age, is unique in that they receive a high number of gift cards each year that often cannot be redeemed without some form of parental involvement.
According to the survey, gift card brands and retailers should focus more on gift card redemption, especially for this group of gift card users. The survey anonymously polled 319 adult consumers via Survey Monkey from the month of June to July, asking respondents various questions about gift cards for this demographic. Here are some key findings:
Fifty-one percent of respondents will buy the same amount of gift cards for kids compared to last year while 32 percent will buy more and 4 percent will buy less.
A little over 30 percent of respondents will buy five to 10 gifts for kids in 2015, and of those gifts, 40 percent will give one to four gift cards and about 28 percent will give five to 10 gift cards.
Birthdays (70 percent_ are the No. 1 occasion for kids to receive gift cards, followed by December holidays (50 percent), school-related accomplishments (25 percent) and congratulations (18 percent).
The types of gift cards adults will buy for kids are primarily from mass merchants (50 percent); toys or games (40 percent); Entertainment (33 percent); and online retailers (30 percent).
When it comes to the monetary value of gift cards given to kids, 55 percent give cards worth $25-$50, while 22 percent give cards worth more than $25.
Plastic cards are the most popular form of gift card given to kids, with 80 percent of respondents choosing to purchase plastic over digital (5 percent).
Most respondents present gift cards to kids with a greeting card (56 percent) while 17 percent will bundle it with a gift and 10 percent will use a free carrier from the store.
When asked for the top reasons why they buy gift cards for kids, respondents said flexibility for the child (49 percent) and not knowing the specific preferences of the child (16 percent) were the top two reasons, followed by convenience for the buyer (13 percent).
When it comes to redemption, 38 percent say it's a good experience for kids to make purchasing decisions with a gift card, while 30 percent said they have never helped a child ages 8 to 15 redeem a gift card.
Challenges faced by giving kids a gift card include forgetting to redeem a card or losing one (15 percent), not finding anything within the gift card limit (15 percent), and difficulty in redemption (4 percent).
In conclusion, it's assumed that when a child receives a gift card as a present, his or her parents will most likely be involved in the redemption process and gift card brands and providers that provide a positive gifting experience both for the child and his/her parents could see increased brand loyalty over time.