The Silent Revenue Stream: Gift Card Breakage

A few months ago, I—Tatiana, the super fun aunt—faced a delightful dilemma. My nephew was turning six, and the pressure to find the perfect gift weighed heavily on my creative soul.

His room overflowed with toys, gadgets, and games. What could I possibly give him that he didn't already own? As I thought about it inspiration struck. Why not gift him an experience—an adventure that creates fun memories?

And so, I sat at my trusty PC, and crafted a Gift Card that read:

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Birthday Adventure Extravaganza!

Valid for:

Lunch at McDonald's! (His favorite): You can choose whatever you want! Even Ice cream of a milkshake!

Afternoon at the Trampoline Park (He has never been): Bounce, flip, and defy gravity. Let′s have fun and get airborne!

?Redemption Instructions: Present this coupon to Aunt Tatiana for an unforgettable day. No expiration date—just a promise of joy!

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On his birthday, I handed him the envelope and his excitement mirrored the stars on the paper. "Wow, Aunt Tati," he exclaimed, "I love this, when can we go?"

But life, dear reader, has a way of complicating even the most magical plans. My sister, his mom, juggles work, school meetings, and soccer practice. The coupon sat on her kitchen counter, buried under grocery lists and bills. Weeks turned into months, and the trampoline park remains unexplored.

My nephew has probably forgotten by now. The coupon became a forgotten treasure. And so, the tale of the unredeemed coupon unfolded—a miniature saga echoing the phenomenon of gift card breakage.

Gift cards, like my coupon, hold promise—an invitation to experience something delightful. Yet, sometimes they languish, unclaimed and unspent. Why? People forget. They misplace cards, let them gather dust, or tuck them into forgotten wallets. Perhaps they expire, like dreams left unfulfilled.

Consider these statistics:

In the United States, a Bankrate survey revealed that 47% of adults possess at least one unspent gift card or voucher. The average value of unused cards per person? A staggering $187, totaling a whopping $23 billion dollars.

Down under in Australia, a Finder study unveiled that 39% of Aussies harbor unused gift cards worth an average of $243 each—a collective of $1.9 billion.

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So, let's learn from the trampoline park adventure coupon and understand there is potential revenue in Gift Card breakage for the issuer when managing retailing with a solid strategy powered by technology.

And as for Aunt Tatiana? Well, I vowed to schedule that trampoline day, even if it means I will keep reminding my sister until we finally get to go. The memory of this experience is meant to be made, not forgotten.