MasterCard study: retailers can boost 2015 revenue by offering customers the choice of personalised gifts

The key to maximising revenue in 2015 might be dialling up a customers’ choice of gifts with a personal touch, especially during gifting seasons. So says a study commissioned by MasterCard on consumers’ seasonal spending habits revealing gifts that can be personalised (46%) and gifts with personal meaning behind them (44%) are what people both prefer to give and receive from loved ones.

The MasterCard wide study of over 15,000 consumers across 17 countries highlighted that nearly a third of Europeans think giving cash as a gift is offensive, although one in ten still admit to having done so. One excuse recipients of a cash gift have given is that their loved ones didn’t know what to buy (45%). This presents an opportunity to retailers who could help these shoppers spend more thoughtfully, thus ensuring the revenue does not bypass their store as it would with a cash gift.

The study also revealed that most (78%) like to shop for gifts a week in advance, or even earlier. However, when it comes to last minute shopping, it is men (34%) that are more likely to leave it until the last minute than women (27%).

The results highlighted that age plays a role in Europeans gifting habits. Customers aged 55 and over (55%) are more than twice as likely as customers aged between 18 and 34 (7%) to simply give cash as a gift. That said, those aged 55 and over are almost just as likely to put thought into the right gift for a loved one (23%), compared to 18-34 year olds (26%), showing that thoughtful gifting is a universal approach.

The study also gives insights into the varying attitudes of consumers across Europe. Notable findings include;
o Nearly two in three (66%) Europeans will pay using card when shopping in-store
o When shopping online, consumers tend to favour using credit card (39%) or debit card (25%). Greece (60%) shoppers are the most last minute, waiting until only the last week before they start planning their festive shopping
o Britain is the best at planning ahead with almost 40% starting their shopping with a month to go
o While almost 90% of consumers in Sweden and France pay in-store using card

In addition to cash, other gifts deemed the most thoughtless by Europeans – and which retailers may want to avoid positioning as perfect presents – included a pet goldfish (52%), household appliances (35%), bed linen (26%) and bath products (26%).

The study also reveals the interesting ways in which our approach to thoughtful gifting varies across Europe;

o Giving cash is considered most thoughtless in Spain (52%) and Italy (45%), which is all the more surprising as they are also the two highest users of cash in Europe;

o Sweden (45%) and Poland (36%) are the most regretful nations, feeling ashamed about a gift they’ve previously bought for not being thoughtful enough;

o Netherlands (21%) and Hungary (17%) are the least likely to say they have received a thoughtless gift;

o Whereas the least regretful nations in Europe are France (12%) and Belgium (9%);

o Greek gift-givers (60%) are the most last minute, waiting until only the last week to start their festive shopping;

o Cash being given as a gift is more likely to trigger an argument for over one in four people in Turkey (27%), more than in any other European nation;

o Belgian and Polish men are the biggest procrastinators, with 43% purchasing gifts at the last minute;

o However, the UK best at planning ahead, with 38% of Brits shopping for gifts a few months in advance or earlier;

o Czechs are the most thoughtful in Europe: 91% feel that thoughtfulness is a deciding factor when deciding what to buy;

o More than anywhere in Europe, those in Russia believe being thoughtful is most important when shopping for family (34%) and friends (31%);

o On the other hand, the French are romantics, and the most thoughtful in Europe when shopping for their partner (41%);

o For Austrians, getting personal is everything: 94% believe that giving a personal gift is most important.

The research was conducted by Toluna across 17 countries: Austria, Belgium, France, Germany, Italy, Netherlands, Poland, Russia, Spain, Sweden, Switzerland, Turkey, UK, Czech Republic, Greece, Hungary and Romania. 15,129 consumers were polled between October 1st and 15th, 2014.