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June 23, 2025
Most businesses love selling gift cards. They bring in cash upfront, attract new customers, and often go unredeemed — which can feel like “free money.”
But here's the twist: you actually want people to redeem them.
Unredeemed gift cards might help short-term cash flow, but high redemption rates are a much better long-term signal. They mean more brand engagement, more word-of-mouth, and more repeat sales.
Let’s break down why redemptions matter — and what you can do to increase them.
There are a few simple ways to get more customers to actually use the gift cards they’ve been given.
Sometimes people just forget. A simple email or text reminder with their remaining balance and a link to redeem it can bring a gift card back to life.
Even better: include product suggestions based on their card amount.
Example:
"You’ve got $25 waiting — here’s what you can get today."
If customers have to jump through hoops to use their card — entering long codes, logging into accounts, or reading fine print — they’ll give up.
Make sure redemption is:
Bonus points if it works across both in-person and online purchases.
Show people how and where they can use the card. Highlight best-sellers that match common card values ($25, $50, etc.) or create curated collections: “What you can get with your gift card.”
This gives recipients instant inspiration instead of decision fatigue.
Encourage redemptions with limited-time add-ons.
Example:
“Use your gift card this week and get a free sample/gift with purchase.”
You’re not discounting the card — you’re sweetening the deal to move them to action.
If someone knows their gift was appreciated, they’re more likely to give again. A simple email like “Your gift card was just redeemed!” can build emotional payoff and increase repeat purchases.
High redemption rates don’t mean you’re losing money. They mean your gift cards are doing their job: turning leads into customers.
It’s better to think of gift cards like performance marketing tools. You’re not just selling them — you’re investing in acquisition, retention, and word-of-mouth growth.
Track how many recipients go on to make second purchases. That’s where the real ROI is.
Ncentiva makes it easy to increase gift card usage without extra effort on your end.
You can:
And when your data shows gift cards converting at a high clip, you’ll have the confidence to double down.
Ready to get more value from every gift card you sell?
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