Gift Card Redemption Rates: Why They Matter and How to Improve Them
Understand gift card redemption rates in corporate programs — what drives unredeemed value, how to measure it and practical ways to make sure rewards get used.
Companies spend on gift cards to create appreciation. Unredeemed cards mean that appreciation never landed. Redemption rate is one of the clearest measures of program effectiveness.
What drives low redemption
| Driver | Example |
|---|---|
| Irrelevant brands | A café card for someone who doesn't drink coffee |
| Local availability | In-store brands with no nearby outlets |
| Confusing redemption | Unclear steps for app wallets or PINs |
| Short validity | Cards expiring before planned purchases |
| Emails missed | Delivery lands in spam |
| Awkward values | Single-use cards with values that don't match purchases |
How to improve redemption
- Offer choice — multi-brand menus.
- Check availability by location.
- Explain redemption clearly in delivery communication.
- Choose appropriate validity for the occasion.
- Send reminders a few weeks before expiry.
- Provide support for code issues.
Employee redeeming a reward card on a phone
Measuring redemption
Where available, track:
- Share of codes redeemed within 30, 90 and 180 days
- Redemption by brand category
- Support tickets per 1,000 recipients
Using redemption data
- Remove low-redemption brands from menus
- Add categories employees favour
- Adjust values and validity
Key takeaways
- Redemption rate reflects whether rewards land.
- Choice, availability and clear instructions drive redemption.
- Send reminders and provide support.
- Use redemption data to refine brand menus.
Frequently asked questions
What is a gift card redemption rate?
The share of issued gift card value or codes that recipients actually use.
How can companies improve gift card redemption?
Offer relevant brand choices, clear instructions, adequate validity, reminders and support.
Why do employees not redeem gift cards?
Common reasons include irrelevant brands, missed emails, short validity and confusing redemption steps.
Orbit Insights Team
The Orbit by SaverPe insights team works with HR, procurement and sales leaders to research what makes corporate gifting and reward programs effective.
How we research and fact-check