Prompt Gift Card Redemption Could Facilitate Business Growth

What is it about?

There is evidence that significant number of prepaid gift cards remain unredeemed for considerable periods. This study identifies that store promotions can facilitate quicker redemption of gift vouchers. The results of this study suggest that store promotions facilitate moving gift card recipients from a state of volition control to elaborating on the potential of adding value to the gift vouchers, thereby bringing forward the hierarchy of effects that expedite consumers becoming regular store patrons and gifting the store’s vouchers to others. Consequent increase of the churn rate of gift cards will result in higher return on stock investment than revenue, from sale of gift cards, used as “floats”.

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