Roughly $23 billion in gift card balances remain unused in the U.S. That’s revenue already sold, but not yet converted into customers.

For merchants, unused gift cards go beyond accounting breakage. Each one is a missed chance to convert a recipient into a first-time buyer, drive repeat purchase behaviour, and increase Lifetime Value (LTV).

Boosting redemption and Average Order Value (AOV) isn’t complicated. It comes down to timing, visibility, and smart incentives.

Below is a practical guide to activating unused gift cards with Giftnote.

Automated reminders

The most common reason gift cards go unused? People forget.

• The Strategy: Don't wait for the customer to remember. Use Giftnote’s integration with ESPs like Klaviyo, Omnisend, or Yotpo to set up specific flows triggered by "Gift Card Issued" events.
• The Play: Send a helpful nudge 30, 60, and 90 days after receipt.
• The Content: "You’ve got store credit waiting!" creates urgency. Pair this with dynamic product blocks showing "Trending Now" items to inspire immediate action.

The Balance Checker

Nothing kills a conversion faster than a customer wondering, "How much is actually left on this thing?" and not finding an answer.

• The Strategy: Empower the customer with self-service.
• The Play: Implement Giftnote’s Voucher Balance Widget directly on your store.
• The Result: When a customer knows they have exactly $42.50 left, they are mentally calculating what they can buy. This reduces support tickets and removes the barrier to checkout

The "Treat Yourself" Upsell

This is how you turn a $100 gift card redemption into a $130 purchase.

• The Strategy: Gift card recipients often view the card value as "free money," which makes them psychologically more willing to spend their own money on top of it. Our statistics consistently show a 30% over-redemption on gift card values.
• The Play: In your reminder emails, don't just say "Spend your balance." Try, "Use your $100 credit towards our new arrivals"
• The Tech: Use Giftnote's data to segment these users in Klaviyo. If they haven't redeemed in 3 months, offer a "Spend your gift card + get Free Shipping" promo. This small incentive is often the tipping point that drives a redemption higher than the card's face value.

Close the Loop

Gift card redeemers are often net-new customers. Don’t treat them like one-off transactions.

• The Strategy: Treat redemption as an acquisition channel, not a transaction.
• The Play: Once the gift card is redeemed, trigger a specific Post-Purchase Flow for "Gift Card Redeemers."
• The Content: "Hope you love what you picked! Here is 10% off your next order." This acknowledges their unique status and immediately plants the seed for a repeat visit, increasing that LTV.

Unspent gift cards are potential loyal customers in hibernation. By using Giftnote to automate reminders, simplify balance checks, and strategically upsell during the redemption process, you don't just clear your liability books, you build a revenue machine.

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