News

Starbucks, Dunkin' rank high for digital gifting experience

September 30, 2014

RSR Research today released results of its fourth benchmarking study on the digital gifting industry, "Digital Gift Cards: Rewriting the Gifting Rules in the Omni-Channel Age." According to a news release, the study evaluates the gifting experiences of the nation's top retailers in verticals such as restaurants, beauty, sports and apparel.

Across all verticals, Starbucks and Dunkin' Donuts both ranked in the top 5 overall, based on this year's criteria. Sephora was No. 1, followed by Starbucks, The Home Depot, Best Buy and Dunkin' Donuts.

RSR focused on differentiators this year, versus features that have become industry standard, according to a news release (such as mobile and social experiences). Also new this year was added criteria around retailers' prioritization of gifting as a whole, the ability to digitally "thank" a gift giver, and integration with retailers' loyalty and marketing programs.

"Digital gifting adoption has come a long way in the few years we've been conducting this research, with the number of brands offering digital gift cards virtually doubling since 2010 and the experiences improving by leaps and bounds," Nikki Baird, managing partner at RSR Research, said in the release. "But, as the report points out, there is still work to be done to fine-tune offerings, such as improving discoverability on Web-based and mobile channels. It was also evident this year that brands are starting to think about better integrating gifting and marketing programs — an area where we see a lot of potential to further engage consumers and capture additional sales."

Other restaurant chains on the list

Additional restaurant chains on the list include:

Cheesecake Factory, No. 6

Buffalo Wild Wings, No. 9

Outside of the top 10 were Applebee's, Chili's Grill & Bar, TGI Friday's, Olive Garden, IHOP, Texas Roadhouse, Red Lobster, Cracker Barrel, Panera, Burger King and Pizza Hut, respectively.

Retailers who did not offer digital gift cards include: Chick-fil-A, Denny's, KFC, McDonald's, Subway, Outback Steakhouse, Yum! Brands and Wendy's.

Best practices

RSR Research's report predicts that 2015 will be a "watershed year for mobile, payments and stored value cards of any type, putting digital and its more promotional cousins in the spotlight." It identified a list of 12 steps retailers should consider with their digital gifting initiatives, including:

1. Prioritize gift cards as part of the overall site experience
2. Let consumers choose their ideal denominations
3. Treat gift card buyers as a different type of customer
4. Respect the buyer in post-purchase marketing
5. Add social media integration in a logical place
6. Be honest and consistent about delivery times
7. Personalization and interactivity count for the recipient too
8. Let them give thanks
9. Under-promising has negative consequences too
10. Test, test, test
11. Optimize for mobile
12. Get serious about wallets