Customers spend on average 20% more than the value of a gift card. They also tend to be less price sensitive than those who spend their “own money”.
Bring in new customers
Some gift card recipients never or rarely visited the business for which they received the gift card. They also changed their purchasing behavior in order to redeem the card.
Encourage gift card recipients to reload money onto their card by offering an incentive. (e.g. Add $50, receive 10% bonus value). This will increase repeat business and turn new customers in loyal ones.