News

Sep
26
2016

Millennials Are Buying More Gift Cards Than Ever - For Themselves

New data suggests that they are buying more gift cards than ever before but then turning around the spending those cards on themselves.

 

Millennials and women are fueling a surge in sales of retailer-specific gift cards, but it seems that they are purchasing more of these gift cards for themselves than to give away to others, as more and more retailers and brands entice consumers with loyalty rewards when they purchase these types of gift cards through apps.

Mercator Advisory Group surveyed 3,009 U.S. adults in June of this year to examine the shift in gift card consumers to prepaid and rechargeable cards issued directly from retailers.

The study found that these types of consumers are steadily growing. Of those surveyed, 63 percent bought these types of cards this year, compared to 61 percent in 2015 and 56 percent in 2014.

Retailer-specific cards are now the most popular types of gift cards, too, with 45 percent of U.S. adults having purchased some form of them this year, up from 41 percent in 2015.

Millennials, specifically those between the ages of 25 and 34, seem to be fueling the rise in the purchase of retailer-specific gift cards, as three out of every five of the young adults surveyed reported buying at least one in the past year — an increase from 2015’s survey, as only about half of millennials reported buying the cards then.

Interestingly enough, with the rise of smartphones, eCommerce and the increasing popularity of retailer-specific gift cards, these types of cards are beginning to function more as a form of currency themselves than as a gift-giving method.

“As retailers introduce new mobile apps, often with mobile payment options that include their retailer prepaid cards, young adults begin to buy retailers cards for their own use, so the cards are becoming a primary payment tool and not just used as gifts,” according to the study.

Women also seem more likely to purchase retailer-specific gift cards than their male counterparts, with 49 percent reporting they purchased at least one this year, compared to only about 40 percent of men. Still, Mercator Advisory Group did note that the number of men purchasing retailer-specific gift cards has “grown steadily” since the firm began tracking the number in 2013.

Also spurring the rise of retailer-specific gift cards, many of the retailer apps’ digital loyalty programs offer consumers free money, in-store points or deals for re-upping or refilling the gift cards, which many millennials seem to be using as a way to stretch their dollars in stores, while push notifications are easily used to remind the consumer that their card is empty or that they might be missing out on a hot, new deal.

“Retailers are introducing more mobile-based apps and offers when using their loyalty and prepaid programs, which may be fueling this growth in retailer gift card purchases,” according to Karen Augustine, manager of Primary Data at Mercator Advisory Group and the author of the report. “Young adults continue to lead this mobile revolution and growing use of prepaid cards as a money management tool.”

Gift cards, thanks in large part to retailer-specific incentives and loyalty rewards programs designed to entice customers to spend more of their dollars on that specific brand or retailer, appear to be enticing consumers to do just that in greater numbers than ever before.

And the gift card seems to be shifting from a token given to friends or families around the holidays or out of appreciation into a practical form of currency for many of today’s savvier young shoppers.

 

Source: PYMNTS.com - September 8, 2016

MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com

TAGS:   card services, Millennials, trends

Sep
23
2016

21,000 Olive Garden Pasta Passes Sold Out in Less Than One Second

That's a lot of fettuccine alfredo!

Less than one second after making their triumphant return to the marketplace, all 21,000 of Olive Garden’s Never-Ending Pasta Passes were snapped up by thousands of people who are apparently unfamiliar with the phrase “too much of a good thing.” To put it in perspective, that’s enough Alfredo-slurping, breadstick-wielding Pasta Pass holders to fill Madison Square Garden.

Pasta Pass holders will be able to gorge themselves on seven weeks’ worth of unlimited pasta, soup or salad, breadsticks, and soda, as often as they want — or are physically capable of? — between October 3 through November 20.

Last year, Olive Garden offered 2,000 passes, all of which were claimed in less than a minute. This year, the chain opted to sell 21,000 in honor of its 21st anniversary — and seemingly could have sold many more.

Sales went live on Thursday at 2 p.m. EST. According to a spokesperson, the first 21,000 people to click “purchase” were able to claim their Pasta Passes: “Everyone else received the sold out message, which for them occurred in less than one second/immediately.”

There are still a handful of passes left — though those who want one will have to duke it out on eBay, where 21 are currently being auctioned to benefit Feeding America. Fair warning: Prices are already well past the original $100, with some bidding as high as $810.

Now the question remains: Will any of this year’s Pasta Pass holders be able to eat more chicken Alfredo than OG superfan Alan Martin, who in 2014 consumed some $1,840 worth of Olive Garden pasta in just seven weeks?

Source: Eater.com, by Virginia Chamlee - September 16, 2016

 

A Team Effort

The success of the Olive Garden Never-Ending Pasta Pass wouldn't be possible without the collaboration of several vendors who work regularly with Darden Brands. Travel Tags, Inc. had the pleasure of partnering with Darden Brands (Olive Garden) for another year on the card production and fulfillment of the Never-Ending Pasta Pass. We're honored to be part of an impressive group of vendors who can implement such a successful marketing campaign as the Never-Ending Pasta Pass, year after year!

 

MEDIA CONTACT:
KATIE SINSKY | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com 

TAGS:   card fulfillment, card manufacturing, Gift Card Services, Loyalty, Rewards and Membership, trends

Aug
31
2016

Eyes on the skies: The dream of drone delivery starts to take flight

Drone package delivery is sparking the imagination of retailers, consumers and everybody in between. Here’s what it means to packaging professionals.

 

 

Amazon, Google, DHL and Walmart are all working on the supply chain of tomorrow, including package handling and delivery. And although the future looks somewhat different to each of them, all four know they want aerial drone technology to be part of it.

Driving their interest in drone package delivery is the possibility of super-fast shipping—as in next half-hour rather than next day—which in turn relates to the growth of e-commerce and consumers’ changing expectations for what constitutes timely delivery.

Online shoppers clearly are interested in getting their purchases as quickly as possible. In a 2016 survey conducted by Walker Sands Communications, 79% of respondents said they would be “very likely” or “somewhat likely” to request drone delivery of their package if it could be delivered within an hour. Of the 1,433 U.S. consumers surveyed, 26% expected to order their first drone-delivered package “in the next two years,” and another 30% said “in the next five years.”

In addition, 73% of Walker Sands’ survey participants said they would pay up to $10 for a drone delivery. Although the economics of drone delivery have not yet been worked out, robust delivery fees could help offset operating costs.

 
Immediately, if not sooner

Minimizing the time it takes to get products from a warehouse to consumers is a key benefit of drone delivery for e-commerce companies. Amazon has publicly stated that the goal of its Prime Air service, which will use aerial drones, is to get packages to customers in 30 minutes or less—on-demand delivery, essentially.

Amazon Prime Air has tested drone prototypes designed with, for example, a small cargo bay or an external bin for carrying packages. In all cases, the packages loaded onto Amazon’s drones are on the small side, weighing no more than five pounds; the drones would be able to fly 10 miles or more to make a delivery.

The company reportedly has been testing its drones in Canada, the United Kingdom and the Netherlands. Amazon declined to comment for this article.

Separately, DHL has been testing drones for the delivery of express and emergency items and/or deliveries to difficult-to-reach areas, such as islands and mountaintops. The company completed a three-month test of its Parcelcopter 3.0, a tilt-wing aerial vehicle, in the Bavarian Alps in early 2016.

The test incorporated DHL’s automated Skyport cargo loading and unloading system. Local customers who wished to send a package by drone between the trial program’s two stations simply inserted their package into the Skyport, and the item was loaded onto the drone. Most of the packages contained sporting goods or medicine.

Google, though its Project Wing program, also has been testing drones. One of Google’s delivery models combines aerial drones with rolling, earthbound robots—the aerial vehicles transfer packages to the robots on the ground (also see “Down-to-earth drones tackle the ‘last mile’”). The company previously had tested a drone that lowered packages, on a tether, directly to the ground. Google, which has shied away from publicity about Project Wing, had no comment.

Continue reading at www.packagingdigest.com

 

Source: Packaging Digest, August 10, 2016 -- Kate Bertrand Connolly

MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com

TAGS:   card fulfillment, holidays, trends