Are you a fan of gift cards? Do you know that they are a brilliant marketing tool used by brands to ensure customer retention and give them a convenient method of shopping at their brand? Whether you are a fan of gift cards or not, it is essential to understand what happens to them when they go unspent and expire.
Gift cards are good to look at, and they guarantee that you will come back to the brand to patronize them. However, less than 80% of people actually redeem their gift cards, and this leads to what is referred to as "gift card breakage." The issuing brand benefits from gift card breakage, and in this post, we'll explain how.
When a gift card goes unspent and expires, some part of that unspent balance goes back to the brand, which benefits the issuing company. That's why some companies hope you don't redeem your gift card. However, the best way to ensure that you do not have unused gift card codes is by redeeming them early.
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Redeeming your gift cards on time has several benefits, including beating inflation, utilizing your digital asset when the brand is still functioning, and avoiding losing the gift card. Inflation is the general rise in the price of goods and services over an elongated period, and redeeming your gift card early helps you enjoy the full benefits of your digital assets before inflation kicks in.
Redeeming your gift card when the brand is still functioning is also important, especially for small-scale businesses that may go under suddenly. It's also possible to misplace a gift card, so redeeming it as soon as possible helps you avoid losing it.
If you lose interest in a brand, it's hard to use a gift card. In such cases, you can swap them or sell them for cash. Swapping may seem crude and tedious, but it's worth a shot. You can look for a family member, friend, or colleague that has a gift card you want and is willing to collect yours. Selling your unwanted gift cards for cash is a much more straightforward and convenient means of making use of the gift card. If you reside in Nigeria or Ghana, the best place to sell your gift cards for cash is Unicxchange.
READ MORE: TOP TEN GIFT CARDS TO TRADE IN 2023
In conclusion, gift cards are a great way to shop conveniently, but it's important to redeem them early to avoid gift card breakage. If you lose interest in a brand, consider swapping or selling your gift cards for cash.
Check out the video below for more information on what happens to unspent gift cards.
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