We read a lot about gift card “breakage”. That pre-paid industry term that translates to “gift cards that have been sold but never redeemed”. Breakage is a negative term for gift card holders and it’s really not such a positive one for retailers (surprisingly). Although breakage leads to higher profit margins; retailers and merchants are NOT gaining customers or building loyalty if those gift card holders never visit the store to become a real customer. Let’s turn this principle into an opportunity for employers, loyalty programs, and Scrip gift card programs, to communicate to their participants and engage them with your program. You know who you have given gift cards to. So, communicate with those program participants, and use that information to engage them in your program. Although many will have redeemed their gift cards, show you care and send them a reminder to use their cards…that employee, loyalty points redeemer, or the Scrip gift card buyer will thank you for the reminder.
