Latest / Marketing Automation with Fexingo: HubSpot, Marketo, and Automated Customer Journeys / When Marketing Automation Ignores Customer Gift Card Balances
Transcript
- Lucas: So I was cleaning out my wallet last weekend, and I found a Starbucks gift card from two Christmases ago. Scratched off the code, checked the balance — twelve dollars and change. Luna: Classic. I probably have three or four of those floating around. Do you ever actually use them? Lucas: Eventually, but only if I remember. And that's the thing — the gift card is basically free money for the customer, but most brands treat it as a one-time acquisition cost and then forget about it. The balance sits there, unredeemed, and the automation workflows never touch it. Luna: So you're saying marketing automation should be tracking gift card balances and sending reminders? Lucas: Exactly. And the numbers are huge. According to a 2023 study from Mercator Advisory Group, roughly $20 billion in gift card value goes unredeemed every year in the U.S. alone. That's not a rounding error — that's a massive engagement opportunity sitting inside customer wallets. Luna: But isn't that a liability for the company? I mean, unearned revenue — they've already booked the cash. Lucas: Yes, but there's a difference between accounting liability and customer relationship. Once the card is sold, the brand has the cash. But if the customer never redeems it, they never experience the product again. You lose the chance to upsell, to build habit, to drive repeat visits. Plus, in many states, unredeemed gift cards eventually escheat to the state — so the brand loses the cash too. Luna: So what does a good gift card automation workflow look like? Give me a concrete example. Lucas: Starbucks does this pretty well. If you load a Starbucks card into their app, they'll send you a push notification when your balance drops below, say, five dollars. It says something like 'Your balance is low, add funds to keep earning stars.' That's a simple trigger based on a real-time data point. Luna: Right, but that's for reloadable cards, not the disposable gift cards people get as presents. Lucas: Good distinction. For disposable gift cards, most brands don't even capture the customer's email at point of sale. So they have no way to follow up. But if you do capture an email — say, at online checkout when the gift card is purchased — you could automate a reminder 30 days later: 'Hey, that gift card for your friend — have they used it yet?' Luna: That's clever. But let's talk about the data. How do you actually integrate gift card balance into an automation platform like HubSpot or Marketo? Lucas: You need an API connection to your gift card processor. Most major platforms — like Blackhawk Network or InComm — have APIs that expose balance and transaction data. You map that to a custom property in your CRM, say 'gift_card_balance' and 'last_redemption_date'. Then you build workflows around thresholds. Luna: And what thresholds actually move the needle? Is a simple low-balance reminder enough? Lucas: It depends on the context. For a coffee shop, a low-balance reminder might get someone to stop in. But for a department store, you might want to trigger an offer when the balance is high — like 'You have fifty dollars on your gift card, come in and we'll give you an extra ten when you spend fifty.' That converts the liability into a sale. Luna: So it's not just about reminders. It's about using the balance as a trigger for personalized offers. Lucas: Exactly. And here's a tactic that works: if you have a customer who hasn't used their gift card in six months, send them an email with a short expiration extension and a product recommendation based on their purchase history. That can lift redemption rates by 30 to 40 percent, according to some case studies from Blackhawk. Luna: That's interesting, but what about the flip side — customers who use their gift card and have a small remaining balance, like two dollars? Is it worth automating anything for that? Lucas: Absolutely. Two dollars is a psychological anchor. If someone has two dollars left, they're more likely to come back to use it than if they had zero. But they might forget. So you can set up a workflow: when balance falls below the price of a low-cost item, send a reminder with a link to that item. Target does this — they'll email you 'You have $1.50 left on your Target gift card. Here's a pack of gum.' Luna: And that works? People come in for a pack of gum? Lucas: Surprisingly, yes. The foot traffic alone is valuable. Once they're in the store, they often buy more than the gum. It's a loss leader, but the gift card balance is already a sunk cost. The store just needs to get them through the door. Luna: Okay, but what about the technical side? A lot of smaller brands don't have a gift card processor with an API. They're using manual spreadsheets or third-party gift card services that don't integrate. Lucas: That's the biggest barrier. But there are workarounds. For example, you can create a landing page where customers can check their gift card balance. When they do, you capture their email and set a cookie. Then you can trigger a follow-up email based on the balance they entered. It's not real-time, but it's better than nothing. Luna: So it's a manual step that relies on the customer to initiate. Lucas: Right. The ideal is a seamless integration, but for many brands, even that small friction is worth it. The key insight is that gift card balances are a first-party data point that most automation workflows ignore. It's sitting right there, but because it's not in the CRM, it's invisible. Luna: I wonder how many other first-party data points we're ignoring. Things like warranty registration, loyalty points, even subscription credits. Lucas: Exactly. Gift cards are just the tip of the iceberg. But they're a great place to start because the behavior is so clear: someone has value stored with your brand, and they need a nudge to convert it. If you can build a workflow around that, you're not just sending spam — you're being helpful. Luna: And that's the kind of marketing that actually feels good to receive. Lucas: Look, these are the conversations that keep us going on this show. If you've gotten something out of them — maybe a workflow idea you've actually implemented — we'd be grateful if you considered supporting the show. It's a couple of dollars a month, genuinely makes a difference in keeping us ad-free. You can find us at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small thing that adds up. And we really appreciate it. Lucas: So back to gift cards — one last tactic I want to mention. If you're a retailer, consider triggering a welcome flow when a gift card is registered online. That's a moment of high intent. The customer is actively engaging with your brand. Send them a 'Here's how to use your card' guide plus a bonus offer, and you can turn a one-time gift into a long-term customer. Luna: That's a great point. The registration itself is a signal. And if you combine it with product recommendations based on the gift giver's purchase history, you might even guess what the recipient likes. Lucas: Right. And that's where automation shines — not just sending emails, but sending the right email at the right moment based on data that's already there. Gift card balances are a perfect example of a data point that's hiding in plain sight. Luna: Alright, I'm going to dig through my wallet tonight. Maybe I'll find a few more. Lucas: And if you do, check the balance. The brand might not remind you, but you can bet they'd love to see you walk through the door.