Gift Cards, Use 'em or Lose 'em

[GT Bulmer]

Hello:

Gift Cards seem to be popular with people looking to give gifts to friends and family. Gift Cards help save time (when you don't know what to buy for the person) and also help to make sure that the recipient gets what they want.

However, there is a big issue concerning Gift Cards that don't get used because they get lost or forgotten. When that happens, the retailer laughs all the way to the bank.

Still, Gift Cards do make sense for that hard-to-buy-for person, or for family or friends who live far away.

That's the consumer side of Gift Cards. What about the Marketer's side of Gift Cards?

QUESTION

==> Do you/would you market the Gift Card idea to your prospects and customers?

I am noticing that online companies are introducing or promoting Gift Cards, and that sales representatives and affiliate marketers are being given the option to market Gift Cards (or something very similar) to their prospects.

Anybody here have experience or opinions on the value of Gift Cards as a marketable/commissionable product?

GT

[Kevin Lee]

==> Do you/would you market the Gift Card idea to your prospects and customers?

I am noticing that online companies are introducing or promoting Gift Cards, and that sales representatives and affiliate marketers are being given the option to market Gift Cards (or something very similar) to their prospects.

Anybody here have experience or opinions on the value of Gift Cards as a marketable/commissionable product?

GT

Hi GT,

I think companies would benefit greatly from marketing their gift cards as commissionable products because they a) guarantee sales and b) most people forget to use them before the expiry dates

[GT Bulmer]

Hi GT,
I think companies would benefit greatly from marketing their gift cards as commissionable products because they a) guarantee sales and b) most people forget to use them before the expiry dates

I agree and I see that as an attraction to businesses. Sometime over the past year (maybe last Christmas) I heard some news program saying something about possible new laws or regulations governing gift cards, but I don't think I've heard anything since then.

How responsible should businesses be on this issue? Do they have a social responsibility to monitor gift card holders to remind them that there is an amount outstanding on the card?

Or perhaps there should be some legislation that prohibits an expiry date on gift cards?

Hey! There's an Internet Marketing business idea for someone! Become an online registry and reminder service for gift card holders. Maybe get it legislated as a national registry where stores that issue cards have to automatically register the cards on behalf of the customer. There are some privacy issues that would have to be worked out, but I think it is doable.

GT

[Kevin Lee]

I agree and I see that as an attraction to businesses. Sometime over the past year (maybe last Christmas) I heard some news program saying something about possible new laws or regulations governing gift cards, but I don't think I've heard anything since then.

How responsible should businesses be on this issue? Do they have a social responsibility to monitor gift card holders to remind them that there is an amount outstanding on the card?

Or perhaps there should be some legislation that prohibits an expiry date on gift cards?

Hey! There's an Internet Marketing business idea for someone! Become an online registry and reminder service for gift card holders. Maybe get it legislated as a national registry where stores that issue cards have to automatically register the cards on behalf of the customer. There are some privacy issues that would have to be worked out, but I think it is doable.

GT

Hi GT,

Personally I don't think businesses should be held responsible for reminding consumers to use their gift cards before the expiry date. For instance, if a person can't remember to finish drinking all of their milk before it spoils and goes to waste, then that's tough luck. Moreover, it would be unfair to businesses to have to honour gift cards past a certain date/time because of the mess it would cause in cash flow and the accounts payable/receivable departments

The only thing businesses should be held accountable for is printing the expiry date in large bold fonts on the gift cards.

All I know is that whenever I receive a gift card or online ebay certificiate, I'll spend it within a week or two month period (at the latest).

[OmnivoreInk]

Jusst as a matter of interest, whenever I buy a giftcard for others, I always make sure that its one that doesn't charge a fee and doesn't expire. If it does, I don't buy it!

On the other hand, whenever I get a gift card, I don't wait, I spend it all immediately! Not because I'm afraid it will expire or something, but I can never resist spending free money immediately!

[Kevin Lee]

Jusst as a matter of interest, whenever I buy a giftcard for others, I always make sure that its one that doesn't charge a fee and doesn't expire. If it does, I don't buy it!

Hi Barbara,

It'd be nice to have an online list of businesses with gift cards and their pros/cons (e.g. expiry dates/restrictions)

[GT Bulmer]

Hi Barbara,
It'd be nice to have an online list of businesses with gift cards and their pros/cons (e.g. expiry dates/restrictions)

Hi, Kevin:

I commented on this in another thread, but what a great idea this is. The site should be able to be set up simply and it would appeal to both consumers and businesses. The site owner could do unbiased reviews of each card that is reported by visitors, and a forum or some form of visitor commenting could be set up to get personal but non-official opinions and insight.

GT

[Kevin Lee]

Hi Barbara,
It'd be nice to have an online list of businesses with gift cards and their pros/cons (e.g. expiry dates/restrictions)

Hi, Kevin:

I commented on this in another thread, but what a great idea this is. The site should be able to be set up simply and it would appeal to both consumers and businesses. The site owner could do unbiased reviews of each card that is reported by visitors, and a forum or some form of visitor commenting could be set up to get personal but non-official opinions and insight.

GT

Hi GT,

I think it'd be tough for the site owner to do an unbiased review or be considered an impartial source if he/she is being paid by companies for gift card listing space.

[Alan Mater]

This is a topic I was just discussing to someone the other day.

Yes, stores are pushing the gift cards because if you don't use them or forget about them, that's big profit for them. Millions are made every year for expired or never used gift cards. I know that if you use a Walmart gift card, but don't spend all of it, and then wait months to use it again, the balance will be less if not zero.

This brings me to a story I just heard last night on the news. A Walmart employee was registering gift cards for people, and instead of putting the amount on the cards, she was pocketing the money for herself and then using it to buy her own gift cards.

Make sure to always keep your receipts and check to make sure the amount is actually on the card.

Alan

[GT Bulmer]

This brings me to a story I just heard last night on the news. A Walmart employee was registering gift cards for people, and instead of putting the amount on the cards, she was pocketing the money for herself and then using it to buy her own gift cards.

Make sure to always keep your receipts and check to make sure the amount is actually on the card.

Alan

Excellent advice, Alan! I think some of us have become too trusting in our society while others have gone the other direction and show little or no respect for other people and their property.

Those with a sense of honour and respect truly need to maintain that standard to help keep the balance in our world.

In the mean time, let's remember to check our receipts!

GT

[litekepr]

I totally agree that gift cards shouldn't have an expiration date, or it should be far enough in the future that it shouldn't make a difference. Actually, I find that if I have a long time to use something, I'm much more likely to forget about it which should help the merchant. However, a gift certificate for a specific product or service should have expiration dates. That allows for inflation in the costs of services and products. For example, I did a teleseminar December 2007 and offered a "limited time offer" but did not give a specific expiration date. Just that they needed to schedule soon. In November, a person from the call contacted me and insisted that I honor the price from a year ago. Since I didn't have anything specific in writing, I felt that I had to honor it - so I took a 20% hit on the price. Also, with the expiration date on a gift certificate - we have the option to honor it anyway - if we choose.

Shri

[Alan Mater]

I agree that expiration dates and any other terms should be printed in large font that is clearly visible. I just purchased a Lowes gift card and on the cardboard it's attached to it says no expiration date in nice big wording, or at least not super tiny wording. I always gave Lowes a bad name due to quality and other specific reasons, but after seeing that I have to give them some credit.

[Kevin Lee]

At the end of the day, I don't feel that gift cards are the best presents to give someone because it's like giving "cash", and worse yet... you're forcing that individual to shop at a specific store.

It's much better to give a "tangible gift" because it'll show that you put more thought into the decision process. Nothing beats a gift from the heart

[OmnivoreInk]

It's much better to give a "tangible gift" because it'll show that you put more thought into the decision process. Nothing beats a gift from the heart

It all depends on what it is...

If you give someone the wrong size clothing, or they don't like it, they have to go to the store to exchange it...such a hassle.

It all depends on the person, as well. I am known as a major book reader, so everybody gives me gift cards to B&N, so I can choose my own books. I love it. (The fact that I also reciprocate with gift cards to B&N is neither here nor there! It's the giving that counts!)

[Alan Mater]

At the end of the day, I don't feel that gift cards are the best presents to give someone because it's like giving "cash", and worse yet... you're forcing that individual to shop at a specific store.

It's much better to give a "tangible gift" because it'll show that you put more thought into the decision process. Nothing beats a gift from the heart

While I agree, it's also impossible to shop for some people and a gift card is a last resort. Also, there are various gift cards that can be used at many different locations. An Olive Garden card can also be used at Red Lobster and Longhorn Steakhouse. Our local (somewhat) mall has a gift card that can be used for any store within the mall.

Some people prefer to receive gift cards simply because they can get what they want instead of receiving something they'll never use.