Unlock the True Value of Gift Cards for Merchants

A Gold Mine of Gift Card Opportunity

Welcome to a recap of our webinar, "Unlocking the True Value of Gift Cards in Business." This session brought together leading experts in the gift card industry to discuss innovative strategies for maximizing gift card potential in any retail setting. If you've joined us live or are discovering this content now, the insights shared here are relevant to your operations.

The central message from our discussion is clear: it's time for merchants to reclaim their gift card programs and seize the myriad opportunities these tools offer for enhancing revenue, customer engagement, and brand loyalty. As we navigate through the expert analyses and real-world examples provided during the webinar, you’ll learn exactly how you can transform your gift card approach to meet and exceed your business objectives.

In the blog post below, we'll explore how to regain control of your gift card business and turn it into a powerhouse of profit and customer satisfaction.

Meeting the Gift Card Experts

Below is a snapshot from our recent webinar, capturing our panel of industry leaders who are redefining the landscape of gift card programs. This engaging session brought together experts from across the nation to discuss the future of gift cards in retail and beyond!

As we delve into each expert's profile and recap their strategies, you'll gain valuable insights on leveraging your gift cards to enhance your business's revenue, customer loyalty, and overall market presence.

Karice Moore-Hill, SELP Digital North America

Karice Moore-Hill, of SELP Digital, highlighted the strategic importance of maximizing the potential of unused gift cards rather than relying solely on breakage. She noted that a significant percentage of consumers spend more than the face value of the card, presenting a prime opportunity for increased revenue. Key strategies include:

• Integrating Digital Strategies: Transitioning from one-time sales to fostering ongoing customer loyalty can significantly boost gift card sales and enhance overall engagement.
• Personalized Marketing: Karice advocated for personalized marketing efforts to remind customers to utilize their gift cards, increasing the likelihood of additional spending.
• Reduce Breakage: Approximately 40% of gift cards retain balances after 12 months, and more than $1 billion of U.S. gift card balances reach the 5-year escheatment status.
• Get Consent: Brands that collect customer consent during the online gift card purchase can engage these shoppers to boost redemption rates.
• Engage Cardholders: Marketing to customers with aging gift card balances effectively increases redemption, boosts sales revenue, and reduces escheatment liability.
• Boost Redemption and Lift: 70-80% of consumers spend more than the face value of a gift card, with the average shopper overspending by 30% of the card value.

Iric Bressler, CardIQ and EZ Gift Card

Iric introduced CardIQ and the EZ Gift Card Wallet, a platform that enables brands to engage millions of gift card owners with personalized marketing, avoiding escheatment issues. He shared insights on how personalization could increase sales by up to 30% and significantly boost customer repeat purchase rates. Other key takeaways include:

• Engaging Gift Card Owners: CardIQ is the only platform enabling brands to reach and engage their millions of gift card owners with personalized marketing and without escheatment concerns.
• Impact of Personalization: Personalization increases lift by up to 30% and increases customer repeat purchase rates by 44%. This 44% increase also applies to gift card owners requesting the same brand's gift card for future gifts.
• Cost-Efficient Onboarding: CardIQ requires no development costs to onboard and has a performance-based cost structure, so brands only pay for results! The budget for this service can come from Marketing.

Shelley Hunter, Gift Card Reform

Drawing from the Ulta Beauty gift card certification, I discussed the overlooked opportunities where businesses can enhance revenue through active gift card redemption. The certification revealed potential lifts in spending and meaningful customer interactions post-purchase, demonstrating the value of sustained engagement. Here are my key learnings:

• Post-Sale Opportunity: A common oversight is that businesses concentrate on selling gift cards and favor breakage over potential revenue increases from redemption. For example, her certification of Ulta's gift card program revealed up to a 5x lift in spending and at least 7-10 meaningful customer touchpoints, showcasing the significant business benefits of sustained engagement.
• Media Engagement and Consumer Advocacy: As a recognized voice in the consumer space, I've increasingly been asked by reporters, "Is it still safe to buy gift cards?" In response, I launched this certification program to identify and promote merchants committed to backing their gift cards and supporting their customers, helping them stand out positively in the media.
• Ways to Increase Revenue: I also shared examples of reaching out to customers post-gift card purchases and even generically running promotions such as "free dessert when you redeem the full value of a gift card." I challenged merchants to dig into their metrics rather than relying on reported stats—what is YOUR breakage, lift, and post-sale engagement strategy?

Three Things to Do NOW to Increase Revenue

Regardless of when you're reading this, now is the perfect time to refine your strategies and maximize gift card revenue. Focusing on customer engagement and support can transform one-time sales into lasting customer relationships. 

Here are three expert-backed actions you can take right now to enhance your gift card program's effectiveness and increase revenue:

1. Get Opt-In Permission at Purchase. Karice emphasized the importance of obtaining customer consent for future marketing during the gift card purchase process. This approach allows for targeted communications and promotions, enhancing engagement and increasing the likelihood of gift card redemption and additional spending.
2. Plan for Post-Holiday Engagement. Iric advised focusing on the period after the holidays when most gift card redemption occurs. By understanding your customer base and employing personalized marketing techniques, you can effectively engage gift card holders with tailored suggestions that encourage them to use their cards. Starting this planning NOW can significantly enhance your program's revenue and effectiveness in the new year.
3. Back Your Brand and Customers. I, of course, emphasized the importance of showing customers that you are brand that stands behind its gift cards. Whether or not you sign up for my gift card certification, now is the time to create a plan that ensures strong customer support and fraud prevention. By addressing these areas proactively, you can build trust, differentiate your brand, and ensure your customers have a seamless gift card redemption experience—fostering long-term loyalty and positive word-of-mouth.

Implementing strategies like this will prepare your brand for a successful holiday season and set the stage for ongoing customer engagement and increased loyalty throughout the coming year.

Crafting Your Gift Card Strategy: A Call to Action

As you reflect on the insights and strategies shared in this webinar, consider the unique aspects of your own gift card program. Look beyond general statistics and dive into what your data tells you about customer behavior and redemption patterns. Whether it’s integrating gift cards into existing customer accounts for easier access and usage, providing enticing incentives upon redemption, or simply optimizing holiday prompts, each step you take should align with your technological capabilities and available resources. Evaluate, innovate, and test—these are your tools to compete and lead in the ever-evolving gift card market.

As we wrap up this recap of "Unlocking the True Value of Gift Cards in Business," I hope you feel inspired to rethink and refine your gift card strategies. Remember, the unique aspects of YOUR PROGRAM  can significantly influence both customer satisfaction and your bottom line. 

If you're looking to delve deeper and truly understand how your gift card program performs for your customers, consider enrolling in our Gift Card Certification program. Not only will you gain a comprehensive assessment and a private report highlighting areas for improvement, but you'll also discover the strategies that resonate best with consumers and those that might be causing confusion.

With my experience studying thousands of gift cards, I'm here to help you optimize and elevate your program to its fullest potential. Let’s make your gift card program a clear win for your business and your customers.

Ready to enhance your gift card strategy? Sign up for Gift Card Certification and become a gift card consumers can trust.

Here's to your success in harnessing the true power of gift cards!

Happy Gifting!

Shelley