TGI Friday's $50M Gift Card Problem

Recent news highlights the significant challenges brands face with unredeemed gift card liabilities, such as the reported $50 million gift card liability impacting major chains like TGI Friday's. This situation underscores the importance of proactive strategies to mitigate financial burdens while enhancing customer engagement.

What Could Have Been Done to Drive Gift Card Redemption Activity?

TGI Friday's situation highlights several strategies that could have mitigated their gift card liability:

1. Proactive Customer Engagement

   • Regular Reminders: Sending timely reminders to gift card holders encourages them to redeem their cards.

   • Personalized Offers: Incentivizing redemption with exclusive promotions or discounts.

2. Leveraging Technology

   • Push Notifications: Utilizing mobile apps to send push notifications directly to customers' devices.

   • Data Analytics: Tracking gift card activity to identify patterns and tailor marketing efforts.

3. Collaborative Franchise Support

   • Unified Campaigns: Coordinating with franchisees to run nationwide redemption campaigns.

   • Resource Sharing: Providing franchisees with tools and strategies to encourage gift card usage locally.

4. Customer Experience Enhancement

   • Seamless Redemption Process: Ensuring that redeeming a gift card is a smooth and enjoyable experience.

   • Feedback Mechanisms: Gathering customer insights to improve gift card programs.