I was recently reading an article where they revealed some crazy gift card stats.
I think this will be helpful in growing your business.
On average, 1 out of 5 gift card recipients have not used them, leaving 5 billion dollars in unredeemed dollars (in 2009).
This happens mostly due to lost cards, expired cards, or they just haven’t had the time. This is called “breakage” and countless businesses profit from it.
This is somewhat a double edged sword because yes it is very profitable when gift cards don’t get redeemed, but most of the time when cards are redeemed more money is spent on that visit to the business.
You also get a fresh opportunity to capture or re-capture frequent patronage (61% of gift card holders spend more than the gifted amount).
This is one of the reasons I teach “Discounting Gift Certificates” as a strategy in Promotions.
It might be interesting to even try an online printable gift card so you don’t even have overhead when your customers purchase the gift card.