Secret: The real revenue basis for merchants issuing gift cards is for merchandise returns. Closed loop lock-in and high breakage (nonuse).
@eric_research @__JasonMarshall Eric, I understand there are two elements for the use of gift cards: gifts, merchant issued credit returns
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@BrianRoemmele@eric_research you are right, merch returns are important - 1 of early use cases. But role as a traffic driver most important -
@__JasonMarshall@eric_research Jason, the thing is the tend is to higher breakage. Also in some stores majority gift cards are for returns. - 6 more replies
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@BrianRoemmele@__JasonMarshall I've never thought about that. Gift returns & receive store credit for merchandise -
@eric_research@__JasonMarshall Eric, for better or worse this is where big growth is mounting. Keeps money in the store, better then cash. - 1 more reply
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