Engift

is the easy way to earn more by selling gift cards

Tips & tricks for growing your business

12 Gift Card Mistakes That Are Costing Your Business Thousands (And How to Fix Them)

12 Gift Card Mistakes That Are Costing Your Business Thousands (And How to Fix Them)

Gift cards represent one of the most profitable products any retail business can offer. They provide immediate revenue, create future sales opportunities, and attract new customers—yet many businesses leave money on the table by making preventable mistakes in their gift card programs.

Whether you're just launching a gift card program or looking to optimize an existing one, avoiding these common pitfalls can dramatically increase your revenue and customer satisfaction. Based on industry data and real-world experience, here are the most critical gift card mistakes businesses make and how to fix them.

Table of Contents

  1. Inadequate Inventory Management
  2. Complicated Purchase Process
  3. Limited Denomination Options
  4. Poor Mobile Experience
  5. Ignoring Corporate Gifting Opportunities
  6. Forgetting About Terms and Conditions
  7. No Multi-Channel Integration
  8. Inadequate Security Measures
  9. Poor Tracking and Analytics
  10. Neglecting Gift Card Marketing
  11. Ignoring Gift Card Design
  12. No Recovery Plan for Unredeemed Cards

1. Inadequate Inventory Management

The Problem

Running out of gift cards is one of the most frustrating experiences for both customers and staff. When a customer is ready to purchase a gift card and you don't have any available, you've lost not just that sale but potentially future business. This issue becomes particularly acute during peak shopping periods like the holidays, but it can happen any time throughout the year during unexpected demand spikes.

Physical gift card inventory problems manifest in several ways:

Stockouts During Peak Demand: Retailers often underestimate gift card demand during busy periods, leading to empty displays when customer interest is highest.

Design Obsolescence: Ordering too many cards with seasonal or promotional designs can leave you with unusable inventory when the campaign ends.

Storage and Security Issues: Physical cards require secure storage, and theft or damage can create unexpected inventory shortages.

Minimum Order Quantities: Many suppliers require minimum orders of 500-1,000 cards, making it expensive and risky to maintain adequate inventory.

The Solution

Modern businesses are solving inventory problems by implementing digital gift cards alongside or instead of physical cards. Digital gift cards through platforms like engift.com offer several advantages:

  • Infinite Inventory: Never run out of gift cards, regardless of demand
  • Instant Fulfillment: Customers receive their gift cards immediately via email
  • No Storage Costs: Eliminate the need for secure storage space
  • Design Flexibility: Change designs instantly without printing costs
  • Reduced Fraud Risk: Digital cards have built-in security features

For businesses that still want physical cards, consider a hybrid approach:

  • Maintain a base inventory of physical cards with timeless designs
  • Use digital cards as a backup when physical inventory runs low
  • Implement just-in-time ordering with reliable suppliers
  • Track inventory levels in real-time through your gift card management software
  • Set automatic reorder points to prevent stockouts

Action Step: Evaluate your gift card inventory over the past 12 months. Identify periods of stockouts or near-stockouts. Calculate the lost revenue from these incidents and use that data to justify investment in a digital gift card system.

2. Complicated Purchase Process

The Problem

Every additional step in the gift card purchase process represents a point where customers can abandon their transaction. Unfortunately, many businesses treat gift card purchases as an afterthought, resulting in confusing, multi-step processes that frustrate customers and kill sales.

Common complications include:

Excessive Information Requirements: Asking for unnecessary details like phone numbers, addresses, or creating an account just to buy a gift card.

Hidden in the Navigation: Placing gift cards deep within website menus where customers have to click multiple times to find them.

Unclear Pricing: Not displaying available denominations and prices upfront, forcing customers to dig for basic information.

Limited Payment Options: Only accepting certain payment methods, excluding customers who prefer alternatives.

Slow Processing: Taking multiple minutes to process a simple gift card purchase due to inefficient systems.

No Guest Checkout: Requiring account creation adds friction that many customers won't tolerate for a simple gift card purchase.

The Solution

Streamline your gift card purchase process by following these principles:

Minimize Required Information: Only collect essential data—typically just the purchaser's email (for the receipt) and the recipient's email (for digital cards). Name fields should be optional or minimal.

Prominent Placement: Feature gift cards prominently on your homepage, in top navigation, and at checkout. Make them impossible to miss.

Clear, Upfront Pricing: Display all available denominations immediately. Use large, clickable buttons for each amount.

Multiple Payment Methods: Accept credit/debit cards, PayPal, Apple Pay, Google Pay, and other popular payment options.

One-Page Checkout: Ideally, customers should complete their entire purchase on a single page. If multiple pages are necessary, use a progress indicator.

Guest Checkout: Never require account creation for gift card purchases. Offer it as an option, not a requirement.

Speed Optimization: Modern gift card platforms process purchases in seconds, not minutes. Your system should too.

Mobile-First Design: Design the purchase flow for mobile devices first, then scale up to desktop (more on this below).

Real-World Example

A restaurant chain reduced their gift card purchase process from 7 steps to 3 steps and saw online gift card sales increase by 67% in the following quarter. The simplified process required only: (1) selecting amount, (2) entering email addresses, and (3) payment. That's it.

Action Step: Mystery shop your own gift card purchase process. Time how long it takes and count how many clicks are required. If it takes more than 2 minutes or requires more than 5 clicks, you have optimization work to do.

3. Limited Denomination Options

The Problem

When you force customers to choose from only one or two gift card denominations, you're essentially telling them what they can spend rather than letting them decide. This creates several issues:

Budget Mismatch: A customer might want to spend $75, but if you only offer $50 or $100 cards, they face an uncomfortable choice—spend less than intended or more than their budget allows.

Lost Large Sales: High-value customers might want to purchase $500 or $1,000 gift cards for special occasions or corporate purposes, but if your highest denomination is $100, you cap your sales potential.

Awkward Gifting Amounts: For relationships that warrant more than $25 but less than $50, customers are forced into the wrong amount.

Multiple Card Purchases: Some customers will buy multiple cards to reach their desired total, but many will simply choose a different retailer with more flexible options.

The Solution

Offer a comprehensive range of denominations that serve different customer needs:

Standard Denominations: Offer common amounts like $25, $50, $75, $100, $150, $200, and $250. These cover most typical gifting scenarios.

Custom Amounts: The best solution is allowing customers to enter any amount within a specified range (e.g., $10-$500). Modern gift card platforms like engift.com make this simple to implement.

Bulk Discounts: For higher denominations or multiple card purchases, consider offering small discounts (e.g., "Buy $500 in gift cards, receive a $25 bonus card").

Occasion-Based Suggestions: Provide guidance by suggesting amounts for different occasions: "Popular for birthdays: $50" or "Average wedding gift: $100-$150."

No Upper Limit for Corporate: If your business handles corporate orders, remove upper limits entirely. Some companies want to purchase $5,000 or more in gift cards.

The Psychology of Pricing

Research shows that offering too few options (under 3) feels limiting, while too many options (over 7-8) can create decision paralysis. The sweet spot is typically 5-7 preset denominations plus a custom amount option.

Interestingly, when custom amounts are available, customers often choose values that end in 0 or 5 anyway, but the perceived flexibility increases satisfaction and purchase rates.

Action Step: Analyze your gift card sales by denomination. If 90% of sales cluster around amounts you don't offer, or if you notice customers buying multiple cards to reach certain totals, expand your denomination options immediately.

4. Poor Mobile Experience

The Problem

With over 60% of online shopping now occurring on mobile devices, a poor mobile gift card experience is no longer just inconvenient—it's a business-critical failure. Yet many businesses still treat mobile as an afterthought, resulting in:

Unresponsive Design: Text that's too small to read, buttons too small to tap, or layouts that break on smaller screens.

Slow Loading: Mobile users are even more impatient than desktop users. If your gift card page takes more than 3 seconds to load, you're losing sales.

Difficult Text Entry: Forms that aren't optimized for mobile keyboards, no autofill support, or excessive typing requirements.

Payment Friction: Not supporting mobile wallets like Apple Pay and Google Pay, which offer one-tap checkout on mobile devices.

Poor Email Rendering: Digital gift cards that don't display correctly in mobile email clients, frustrating recipients.

No Mobile Testing: Many businesses never actually test their gift card purchase process on real mobile devices.

The Solution

Creating an excellent mobile gift card experience requires dedicated attention:

Responsive Design: Your gift card purchase interface must automatically adapt to any screen size. Test on various devices—iPhones, Android phones, tablets.

Large Touch Targets: Buttons and links should be at least 44x44 pixels to accommodate finger taps. Avoid requiring precise selections.

Minimal Typing: Pre-populate fields when possible, use dropdown menus instead of text entry where appropriate, and support autofill for email addresses and payment information.

Mobile Wallet Integration: Implement Apple Pay, Google Pay, and Samsung Pay. These services can reduce checkout friction by 70% on mobile devices.

Fast Loading: Optimize images, minimize code, and use a content delivery network (CDN) to ensure your gift card pages load in under 2 seconds.

Single-Column Layouts: On mobile, use single-column designs that require vertical scrolling rather than horizontal navigation or multi-column layouts.

SMS Options: Consider offering SMS delivery for digital gift cards in addition to email, especially for younger demographics.

Progressive Web App (PWA): Advanced businesses can implement PWA technology, allowing customers to "install" your gift card purchasing experience for even faster access.

Mobile-First Development

The best approach is designing for mobile first, then enhancing for larger screens. This ensures the core experience works flawlessly on the most constrained devices.

Action Step: Right now, pick up your phone and try to purchase a gift card from your business. Use a stopwatch and count the number of taps required. If the experience frustrates you, it's frustrating your customers. Modern gift card platforms provide mobile-optimized interfaces out of the box.

5. Ignoring Corporate Gifting Opportunities

The Problem

Corporate gift card purchases can represent bulk orders worth thousands of dollars, yet most businesses focus exclusively on individual consumers. This leaves massive revenue on the table.

Corporate clients need gift cards for multiple purposes:

  • Employee recognition and rewards
  • Holiday bonuses and appreciation
  • Client gifts and relationship building
  • Event prizes and incentives
  • Milestone celebrations (work anniversaries, retirements)
  • Wellness program rewards
  • Customer loyalty incentives

Without a corporate-focused approach, businesses miss these opportunities because:

No Clear Process: Corporate buyers don't know how to purchase in bulk or who to contact.

Unsuitable Minimums: Requiring individual purchases for each card is impractical when a company needs 50, 100, or 500 cards.

Lack of Invoicing: Corporate buyers typically need to purchase via invoice with net-30 payment terms, not consumer credit cards.

No Customization: Companies want branded cards with their logo or custom messages, which standard retail cards don't accommodate.

No Volume Discounts: Without incentives for large purchases, companies may choose competitors offering better bulk pricing.

The Solution

Create a dedicated corporate gift card program:

Dedicated Landing Page: Create a "Corporate Gift Cards" or "Business Gifts" page that outlines:

  • Bulk purchasing process
  • Minimum order quantities (if any)
  • Volume pricing or discounts
  • Customization options
  • Payment terms available
  • Turnaround times

Simplified Bulk Ordering: Implement a system where corporate clients can order multiple gift cards in a single transaction. Ideally, they should be able to upload a CSV file with recipient names and email addresses for large orders.

Flexible Payment Terms: Offer invoice billing with net-30 terms for established business clients. This is standard in B2B transactions.

Custom Branding: Allow companies to add their logo or custom message to gift cards, especially for employee or client gifts. Digital cards make this customization trivial and cost-free.

Account Management: For larger corporate clients, assign a dedicated account manager who can handle special requests and ensure smooth ongoing transactions.

Reporting Features: Provide detailed reports showing which cards have been delivered, viewed, and redeemed—important data for corporate gift programs.

Tax Documentation: Ensure you can provide the proper tax documentation corporate clients need for accounting purposes.

Marketing to Corporate Clients

Don't wait for corporate clients to find you:

  • Network at local chamber of commerce meetings
  • Contact HR departments at large local employers
  • Partner with corporate gift consultants
  • Advertise in business publications
  • Attend trade shows where corporate buyers gather
  • Create case studies showing successful corporate programs

Action Step: Create a simple "Corporate Gift Cards" page today that includes a contact form. Reach out to 10 local businesses this month to introduce your corporate gift card program. Many companies are actively looking for local gift card options for their employees.

6. Forgetting About Terms and Conditions

The Problem

Unclear or absent gift card terms and conditions create three major problems:

Customer Service Nightmares: When policies aren't clearly communicated upfront, customers create their own assumptions, leading to disputes and complaints.

Legal Compliance Issues: Gift card regulations vary by jurisdiction, covering everything from expiration dates to dormancy fees. Failure to comply can result in significant fines.

Revenue Recognition Errors: Without clear terms, you may mishandle the accounting treatment of gift card sales, especially regarding breakage.

Common term and condition failures include:

  • Not communicating expiration policies (where legally permitted)
  • Unclear information about fees (dormancy, replacement, etc.)
  • Failing to explain how to check balances
  • Not specifying where cards can be used (online, in-store, or both)
  • Omitting information about lost or stolen card policies
  • Not addressing what happens if a business changes ownership or closes

The Solution

Create comprehensive, transparent gift card terms and conditions:

Legal Compliance: Consult with a legal professional familiar with gift card regulations in your jurisdiction. Rules vary significantly by country, state, and province. Key issues typically include:

  • Expiration dates (many jurisdictions prohibit expiration or require minimum 5-year validity)
  • Dormancy or inactivity fees (heavily regulated or prohibited in many places)
  • Escheatment laws (unclaimed property that must be turned over to the government)
  • Required disclosures on the card itself

Clear Presentation: Make your terms easily accessible:

  • Display key terms at the point of purchase
  • Include a link to full terms and conditions
  • Provide terms in the gift card email for digital cards
  • Print essential information on physical cards
  • Make terms available on your website

Essential Elements: Your terms should clearly address:

  • Expiration policy (if applicable in your jurisdiction)
  • Where cards can be redeemed (online, physical locations, restrictions)
  • How to check balances (phone number, website, in-store)
  • Replacement policy for lost or stolen cards
  • Whether cards can be redeemed for cash (some jurisdictions require this)
  • Any purchase restrictions or limitations
  • Refund and return policy for gift cards themselves
  • How cards interact with sales, discounts, and promotions
  • What happens to remaining balances under $5-10

Customer-Friendly Language: Write terms in plain language, not dense legalese. The goal is understanding, not confusion.

Prominent Disclosure: Don't hide terms in small print or require excessive clicking to find them. Transparency builds trust.

Balance Management

Make it extremely easy for customers to check gift card balances:

  • Website balance checker
  • Phone number with automated balance inquiry
  • Mobile app integration (if you have an app)
  • Balance displayed in redemption emails

Modern gift card management platforms like engift.com include self-service balance checking, reducing customer service inquiries by 60-80%.

Action Step: Review your current gift card terms and conditions (or create them if they don't exist). Have someone unfamiliar with your business read them and ask questions. If they're confused, your customers are too. Verify compliance with local regulations—this is not the place to learn through expensive mistakes.

7. No Multi-Channel Integration

The Problem

Many businesses treat online and in-store gift cards as completely separate systems. This creates a fractured customer experience:

  • Gift cards purchased online can't be used in-store
  • In-store cards can't be checked or used online
  • Different balance systems create confusion
  • Customers can't check balances across channels
  • Redemption tracking is incomplete

This lack of integration frustrates customers and limits gift card utility, reducing both sales and redemption rates.

The Solution

Implement unified gift card management that works seamlessly across all channels:

Universal Redemption: Customers should be able to use gift cards anywhere you do business—physical locations, website, mobile app, or phone orders.

Real-Time Balance Updates: When a gift card is used in any channel, the balance should update immediately across all channels.

Consistent Experience: The process for purchasing, checking balances, and redeeming should be similar regardless of channel.

Unified Reporting: You should see complete gift card data across all channels in one place, not separate reports that must be manually reconciled.

Professional gift card platforms integrate with:

  • POS systems for in-store redemption
  • E-commerce platforms for online sales and redemption
  • Mobile apps for full functionality
  • Call center systems for phone orders

Action Step: Test your gift card's cross-channel functionality. Buy a card online and try to use it in-store. Purchase one in-store and attempt to redeem it online. If either fails or requires workarounds, you need better integration.

8. Inadequate Security Measures

The Problem

Gift card fraud has become increasingly sophisticated, costing businesses billions annually. Common fraud scenarios include:

Card Draining: Criminals access gift card numbers and PINs, monitoring balances online, then quickly drain the card as soon as it's loaded.

Receipt Theft: Fraudsters steal receipts with gift card information from trash bins and use the cards before legitimate purchasers do.

Social Engineering: Scammers convince victims to purchase gift cards and share the numbers, then quickly drain the cards.

Employee Theft: Internal fraud where employees create unauthorized gift cards or access existing card numbers.

Number Guessing: For systems with predictable card numbers, criminals can guess valid numbers and attempt to use them.

Card Cloning: Copying magnetic stripe information to create duplicate cards.

The Solution

Implement robust security measures:

Strong Encryption: All gift card data should be encrypted both in transit and at rest.

Randomized Card Numbers: Use long, truly random card numbers that can't be guessed or predicted.

PIN Protection: Require PINs for redemption that are separate from card numbers and equally randomized.

Activity Monitoring: Automated systems should flag suspicious activity like:

  • Multiple balance checks from the same IP address
  • Cards checked immediately after being loaded
  • Rapid redemption across multiple locations
  • High-value cards used minutes after purchase

Delayed Activation: For high-risk scenarios, consider delaying card activation for 24 hours after purchase, preventing immediate fraud.

Fraud Alerts: Notify customers immediately of unusual activity via email or SMS.

Secure Physical Cards: Use card designs that make tampering evident, such as scratch-off panels that show if they've been revealed.

PCI Compliance: Ensure your gift card system is PCI DSS compliant, protecting customer payment information.

Employee Controls: Implement strict access controls limiting which employees can create, modify, or refund gift cards. Maintain detailed audit logs.

Modern gift card platforms include these security features built-in, eliminating the need to build them yourself.

Action Step: Audit your gift card security measures. If you're not monitoring for fraud patterns or don't have encryption in place, you're vulnerable. The cost of implementing proper security is far less than the cost of fraud losses.

9. Poor Tracking and Analytics

The Problem

Many businesses know how many gift cards they sell but lack deeper insights:

  • Which denominations sell best?
  • What's the average time between purchase and redemption?
  • What percentage of cards are never redeemed (breakage)?
  • Do gift card recipients become repeat customers?
  • What's the average overspend when cards are redeemed?
  • Which marketing channels drive gift card sales?

Without this data, you're making gift card decisions blindly, missing optimization opportunities.

The Solution

Implement comprehensive gift card analytics:

Sales Metrics:

  • Total gift card revenue by period
  • Average transaction value
  • Cards sold by denomination
  • Digital vs. physical card split
  • Purchase channel breakdown (online, in-store, mobile)
  • Geographic distribution of purchasers

Redemption Metrics:

  • Redemption rate (percentage of cards redeemed)
  • Average time to first redemption
  • Average time to full redemption
  • Partial vs. complete redemptions
  • Overspend analysis (how much more recipients spend vs. card value)
  • Redemption channel preferences

Financial Metrics:

  • Outstanding liability (unredeemed balance)
  • Projected breakage rate
  • Revenue recognition timeline
  • Refund and reversal rates

Customer Metrics:

  • New customers acquired through gift cards
  • Repeat purchase rate of gift card recipients
  • Customer lifetime value comparison (gift card recipients vs. regular customers)
  • Demographics of gift card purchasers and recipients

Campaign Performance:

  • ROI of gift card marketing campaigns
  • Promotional impact on sales volume
  • Seasonal trends and patterns

Professional gift card software provides dashboards showing all these metrics in real-time, with customizable reports and export options.

Action Step: List the top 5 questions you have about your gift card program's performance. If you can't answer them with data, you need better analytics. Quality gift card platforms provide these insights automatically.

10. Neglecting Gift Card Marketing

The Problem

Many businesses implement gift cards but do little to actively promote them. They assume customers will naturally discover and purchase gift cards on their own. This passive approach leaves significant revenue untapped.

The problem manifests as:

  • Gift cards hidden in website navigation
  • No in-store signage or displays
  • Zero dedicated marketing campaigns
  • No email promotion to existing customers
  • Missing from social media content
  • Absent from the checkout process

When you don't actively market gift cards, sales remain flat regardless of their profit potential.

The Solution

Treat gift cards as a product that requires active marketing:

Prominent Website Placement:

  • Homepage banner or featured section
  • Top navigation menu item
  • Persistent footer link
  • Pop-up for exit intent
  • Featured at checkout ("Don't forget—gift cards available!")

In-Store Marketing:

  • Eye-catching displays at entrance and checkout
  • Table tents or shelf talkers
  • Staff training to suggest gift cards
  • Window signage
  • Receipt messaging

Email Marketing:

  • Dedicated gift card campaigns before major holidays
  • Include gift card options in regular newsletters
  • Abandoned cart emails for gift card pages
  • Birthday email campaigns suggesting gift cards
  • Anniversary emails to past gift card purchasers

Social Media:

  • Regular posts featuring gift card availability
  • Instagram stories showing gift card uses
  • Facebook ads targeting people whose friends have birthdays coming up
  • User-generated content from gift card recipients
  • Influencer partnerships

Seasonal Campaigns:

  • Mother's Day and Father's Day
  • Valentine's Day
  • Graduation season
  • Back to school
  • Black Friday / Cyber Monday
  • December holidays
  • Teacher appreciation week

Promotional Incentives:

  • Bonus cards ("Buy $100, get $20 free")
  • Percentage bonuses for larger purchases
  • Free shipping for physical cards
  • Bundle deals with products

Content Marketing:

  • Blog posts about "The Perfect Gift for [Person]"
  • Gift guides featuring your gift cards
  • Video content showing gift card use cases
  • Testimonials from satisfied gift card recipients

Partnership Marketing:

  • Cross-promote with complementary businesses
  • Include in local gift registries
  • Partner with corporate gift consultants

Action Step: Dedicate one hour per week to gift card marketing. If you're not actively promoting gift cards at least weekly, you're leaving money on the table. Create a 3-month gift card marketing calendar this week.

11. Ignoring Gift Card Design

The Problem

Generic, unattractive gift card designs make them feel like an afterthought rather than a desirable gift. When gift cards look cheap or boring, customers perceive them as impersonal, reducing purchase motivation.

Design problems include:

  • Plain, text-only cards with no visual appeal
  • Generic stock images that don't reflect your brand
  • Poor print quality on physical cards
  • No seasonal or occasion-specific options
  • Inconsistent branding with your business identity
  • Amateur-looking digital card designs in emails

The Solution

Invest in professional, attractive gift card design:

Physical Cards:

  • Premium card stock that feels substantial
  • Professional graphic design reflecting your brand
  • High-quality printing with crisp colors
  • Optional special finishes (metallic, spot UV, embossing)
  • Seasonal designs for major holidays
  • Occasion-specific designs (birthdays, weddings, thank you)

Digital Cards:

  • Beautiful email templates with your branding
  • Mobile-responsive design that looks good on all devices
  • Animated elements or video for premium feel
  • Personalization options (recipient name, custom message)
  • Social sharing optimization for viral potential
  • Various design choices for different occasions

Customization Options:

  • Allow purchasers to add personal photos (especially popular for birthdays)
  • Custom message fields with adequate character limits
  • Choice of multiple card designs
  • Preview before purchase

Branding Consistency:

  • Use your brand colors, fonts, and style
  • Include your logo prominently
  • Match the overall aesthetic of your business
  • Ensure cards would make customers proud to give them as gifts

Action Step: Compare your gift card design to those of your competitors and leading brands in other industries. Would someone be proud to give your gift card as a gift? If not, redesign is needed. Modern gift card platforms allow easy design updates without reprinting costs.

12. No Recovery Plan for Unredeemed Cards

The Problem

Industry data shows that 10-19% of gift card value goes unredeemed. While this "breakage" creates revenue, completely unredeemed cards represent missed opportunities for:

  • Building customer relationships
  • Generating additional purchases (overspend)
  • Creating repeat customers
  • Positive brand experiences

Simply accepting that some cards won't be redeemed ignores the potential to convert those cards into active customers.

The Solution

Implement a gift card reminder and recovery program:

Automated Reminders:

  • Email recipients 3 months after card receipt if unused
  • Reminder at 6 months with balance information
  • Final reminder at 9-12 months (if no expiration)
  • Include balance and easy redemption link in every reminder

Incentive-Based Reactivation:

  • Offer small bonuses for aged cards ("Use your $50 card this month and receive a $10 bonus")
  • Extra discount on top of card value to incentivize redemption
  • Special access or exclusive products for gift card holders

Balance Notifications:

  • Alert customers to small remaining balances
  • Suggest products that match the remaining amount
  • Offer to combine multiple small-balance cards

Expiration Warnings (where expiration is legal):

  • 60-day warning before expiration
  • 30-day warning with escalated urgency
  • 7-day final notice

Customer Service Outreach:

  • For high-value cards unused after 6 months, consider personal outreach
  • Offer assistance with redemption ("Can we help you find something?")
  • Ask about barriers to redemption

Reengagement Campaigns:

  • Include gift card holders in special sales
  • Invite to exclusive events
  • Feature products ideal for their card value

The goal isn't to eliminate breakage entirely (which contributes to profitability) but to ensure cards go unredeemed due to customer preference, not due to customers forgetting about them or finding redemption difficult.

Action Step: Pull a list of all gift cards purchased 6+ months ago that have zero redemption activity. Send a simple, friendly reminder email with the balance and a direct link to start shopping. Track the redemption lift from this single action.

Putting It All Together: Your Gift Card Success Checklist

Use this checklist to audit your current gift card program:

Inventory & Operations

  • [ ] Never run out of inventory (digital cards solve this)
  • [ ] Multi-channel integration working seamlessly
  • [ ] Security measures protecting against fraud
  • [ ] Backup systems in place for technical failures

Purchase Experience

  • [ ] Simple, streamlined purchase process (under 3 steps)
  • [ ] Mobile-optimized purchasing
  • [ ] Multiple payment options available
  • [ ] Guest checkout enabled
  • [ ] Clear, upfront pricing and denominations

Options & Flexibility

  • [ ] 5-7 denomination options plus custom amounts
  • [ ] Both physical and digital cards available
  • [ ] Instant delivery option for digital cards
  • [ ] Multiple design choices
  • [ ] Personalization options (messages, images)

Business Opportunities

  • [ ] Corporate gifting program established
  • [ ] Bulk ordering process streamlined
  • [ ] Volume pricing or incentives available
  • [ ] Invoice billing for business clients

Communication & Transparency

  • [ ] Terms and conditions clearly displayed
  • [ ] Easy balance checking available
  • [ ] Redemption instructions clear
  • [ ] Customer service prepared for gift card inquiries

Marketing & Promotion

  • [ ] Gift cards prominently featured on website
  • [ ] In-store displays and signage
  • [ ] Regular email marketing campaigns
  • [ ] Social media promotion
  • [ ] Seasonal campaigns planned
  • [ ] Staff trained to suggest gift cards

Analytics & Optimization

  • [ ] Sales tracking by channel and denomination
  • [ ] Redemption rate monitoring
  • [ ] Breakage rate calculated
  • [ ] ROI measurement for marketing campaigns
  • [ ] Regular reporting and analysis

Customer Engagement

  • [ ] Reminder program for unredeemed cards
  • [ ] Balance notification system
  • [ ] Reengagement campaigns active
  • [ ] Feedback collection from gift card users

The Bottom Line: Gift Cards as Strategic Assets

Gift cards are not just a convenience feature—they're a strategic business asset that, when properly implemented, can:

  • Improve cash flow during critical periods
  • Attract new customers at low acquisition cost
  • Generate repeat business and loyalty
  • Increase average transaction values
  • Reduce seasonality impacts
  • Create a sustainable additional revenue stream

However, realizing these benefits requires avoiding the common mistakes outlined above. Each mistake doesn't just represent lost revenue—it represents lost customers, diminished brand perception, and missed growth opportunities.

Your Next Steps

The difference between a mediocre gift card program and an excellent one often comes down to technology and execution. Manual processes, disconnected systems, and ad-hoc approaches create most of the problems discussed in this article.

Professional gift card management platforms like Engift solve these challenges by providing:

  • Automated Systems: Eliminate manual errors and reduce administrative burden
  • Multi-Channel Integration: Seamlessly work across online, in-store, and mobile
  • Robust Security: Protect against fraud with enterprise-grade measures
  • Comprehensive Analytics: Make data-driven decisions with detailed reporting
  • Scalability: Handle peak demand without service degradation
  • Mobile Optimization: Provide excellent experiences on any device
  • Flexible Configuration: Customize denominations, designs, and policies
  • Customer Self-Service: Reduce support inquiries with balance checking and card management

Don't let preventable mistakes limit your gift card program's potential. With the right approach and tools, gift cards can become one of your most profitable product lines while providing genuine value to your customers.

Ready to eliminate these mistakes from your gift card program? Try Engift for free to discover how professional gift card management software can transform your program from a basic offering into a profit-driving, customer-attracting business asset.


Implementing even a few of the solutions outlined above can significantly impact your gift card revenue. Start by addressing your most critical gaps, and build from there toward a best-in-class gift card program that drives sustainable business growth.

Dec 5, 2025

About the author

John Smith

John Smith

John is an experienced entrepreneur and the founder of Engift - a leading provider of easy-to-use software for managing digital and physical gift cards, vouchers and coupon codes, helping businesses boost sales and customer engagement.