Hey Hi Everybody !
This is Nidhi from Pinnacle Works and today we continue on our topic on gift vouchers.
So I want to talk about breakage in gift vouchers um what is break it sounds like a crazy word but do you know that 100 percent of the gift vouchers which are given out don’t get redeemed even while gift vouchers or gift cards are just like cash but they don’t get redeemed.
People don’t use it and definitely people don’t use it fully and you know what you don’t need to do any survey or believe on some research just ask around but look into your own wallet or think about it how many gift vouchers that you received which you did not use or use it fully.
And that’s why I like to always say that the people who make the maximum amount of money in gift vouchers are the companies who issue the gift vouchers because this breakage or the percentage of people who actually don’t redeem the gift vouchers is pretty pretty high.
Quite honestly in an era in the online gift vouchers it’s relatively lesser but it’s not zero yes it is true even while it is asking mean it is going online and just entering the gift voucher codes a lot of gift vouchers get lost.
But in the era where you had physical gift vouchers where you had to go to a store to redeem it the breakage percentage was very high sometimes these breakage percentages are anywhere between two to three percent to even an upward of twenty five percent .
So imagine so much of money that you are using you’re giving it out as recognition and people don’t even use it what does it do for you if people are not redeeming the gift voucher mean they’re not using it meaning they have already forgotten about their recognition.
They’ve already forgotten because not associated all they got was maybe a code or a piece of paper in the name of recognition and if they have not redeemed it with something it’s gone so just be careful about the breakage in the gift vouchers and keep that in mind the next time you want to include gift vouchers in your recognition program again like I always say it gift vouchers are not bad but gift voucher cannot be the solution for all your recognition needs.
Thank You everybody let’s see you again in one of my next videos.
Bye
