How Whistle Rewards Helped a Firm Save Over $1 Million in Unused Gift Cards

In the construction industry, recognizing and rewarding hard work is crucial for maintaining employee morale and productivity. One of our clients faced a significant challenge in their rewards program. In 2023, they spent $2 million on Starbucks and Grubhub gift cards for employees and sub-contractors. However, a detailed analysis by Whistle Rewards revealed a frustrating inefficiency: only $880,000 worth of these gift cards were ever redeemed.

This meant that $1,120,000 of the firm’s reward budget was essentially wasted, lining the pockets of Starbucks and Grubhub with extra profit. This phenomenon, known as “breakage,” is common in the gift card industry.

Understanding Breakage

Breakage refers to the unredeemed value of gift cards, which becomes pure profit for the issuing company once the card expires or goes unused for a long period. Essentially, it’s the difference between the amount spent on purchasing gift cards and the amount actually redeemed by the recipients. For companies, this means spending a significant amount on rewards that their employees never use.

The Whistle Solution

Recognizing the inefficiency in their reward system, the firm switched to Whistle Rewards in 2024. Whistle operates differently from traditional gift card programs. Our platform ensures that every dollar spent on rewards is utilized, eliminating the concept of breakage entirely.

The Results

After implementing Whistle Rewards, the construction firm saw dramatic cost savings. By re-capturing the funds that were previously lost to breakage and allowing them to be re-deployed, Whistle helped the firm reduce their reward costs by $1,015,000 in 2024. 

 How We Did It

1. Comprehensive Analysis: Whistle conducted an in-depth analysis of the firm’s previous gift card usage, identifying patterns and gaps in redemption.
2. Flexible Reward Options: Instead of limiting rewards to specific brands, Whistle offers a custom-branded Visa rewards card giving employees maximum flexibility.
3. Real-Time Tracking: Our platform provided real-time tracking of reward issuance and redemption, ensuring complete transparency and accountability.
4. Tax Compliance: Whistle is IRS compliant, providing full transparency and reporting to keep our clients safe.
5. Employee Engagement: Whistle is built for workers in the field. Users don’t need an app, a password or userid to be rewarded. They get a text message (or email) with the reward. Every subsequent reward goes right onto the same branded card in their wallet.
6. Employees and sub-contractors: Whistle is the only solution for employees, sub-contractors and vendors. 

 Why Choose Whistle Rewards?

Whistle Rewards is dedicated to maximizing the value of your reward programs. Unlike traditional gift card systems that profit from unredeemed cards, our goal is to ensure every dollar spent on rewards is fully utilized. This commitment to efficiency and transparency sets us apart in the industry.

If your company is still relying on traditional gift cards for employee rewards, it’s time to reconsider. Contact Whistle Rewards today to learn how we can help you maximize your reward budget and boost your team’s morale and productivity.