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Gift Card Market Segments With The Aid Of An Effective Customer Segmentation Strategy

Rohan Deep
Gift Card Market Segments With The Aid Of An Effective Customer Segmentation Strategy

The gift card market refers to the buying and selling of gift cards, which are prepaid cards that can be used to purchase goods and services at specific retailers or establishments. The gift card market has grown significantly in recent years, with many retailers and businesses offering gift cards as a popular gifting option.

There are two main types of gift cards: closed-loop gift cards and open-loop gift cards. Closed-loop gift cards can only be used at a specific retailer or establishment, while open-loop gift cards can be used at a variety of different retailers or establishments.

The gift card market is a multi-billion dollar industry, with major players including retailers like Amazon, Walmart, and Target, as well as companies that specialize in gift card sales and distribution, such as Blackhawk Network and InComm.

Gift cards are often purchased for special occasions such as birthdays, holidays, and weddings, and they can also be used for employee incentives, customer rewards, and other marketing promotions. However, it is important to note that gift cards can also have drawbacks, such as expiration dates, fees, and restrictions on where they can be used.

Detailed Segmentation:

  • Global Gift Card Market, By Type:
  • Universal accepted open loop
  • Restaurant closed loop
  • Retail closed loop
  • Miscellaneous closed loop
  • E-Gifting
  • Global Gift Card Market, By Merchant:
  • Restaurant
  • Department store
  • Grocery stores/food supermarket
  • Discount store
  • Coffee shop
  • Entertainment
  • Others

Market Trends

The growing trend of using closed-loop gift cards as it has a prepaid amount is fueling the market growth of gift cards. Despite the easy availability of universal or open-loop gift cards, consumers still prefer closed-loop specialty gift cards as it is a convenient option during heavy sales shopping months and also allow consumer for personal use. Closed-loop gifts cards offer specialty gift cards, which enable users to plan their spending budget in a particular store. This factor is expected to foster the market growth of gift cards.

Increasing the focus of players to introduce lottery cards is expected to propel the market growth of gift cards. For instance, in October 2015, Incomm, which is a prepaid card and payment solution provider, entered into a five-year contract with Scientific Games International, Inc., which is a technology-based product developer, to offer lottery gift cards in North America. However, these cards can only be redeemed by a person aged 18 years or older.

Rohan Deep
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