EXPERT INTERVIEW: Best Buy Gift Card Director Reveals How Electronics Retail Is Adapting to the Digital Gifting Era

Industry Expert Interview Series

Gift Card Strategy & Innovation Episode 12: Electronics Retail Focus

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Editor's Note: We recently sat down with a senior gift card program executive from the electronics retail sector to discuss the evolving landscape of gift cards in consumer electronics. The following has been lightly edited for clarity.

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On the Current State of Electronics Gift Cards

Q: How has the Best Buy gift card program evolved over the past few years?

A: The transformation has been remarkable. Five years ago, gift cards were primarily a holiday product — something you grabbed at checkout when you couldn't think of what to buy someone. Today, they're a year-round revenue driver that represents a significant portion of our transactions.

We've seen the average gift card denomination increase from about $45 to nearly $75. That reflects both consumer confidence in our brand and the reality that electronics aren't cheap. A $25 card doesn't go far when you're shopping for tech.

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On Digital vs. Physical Cards

Q: What's the split between digital and physical gift cards now?

A: We're at roughly 45% digital, 55% physical — which might surprise people. There's this assumption that everything's going digital, but physical gift cards still have strong appeal, especially for:

• Holiday gifting (presentation matters)
• Last-minute in-store purchases
• Older demographics who prefer tangible gifts
• Corporate bulk orders for employee rewards

The digital share is growing about 8-10 percentage points annually, though. We expect to hit 50/50 by late 2025.

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On Consumer Behavior Patterns

Q: What interesting patterns do you see in how people use Best Buy gift cards?

A: A few things stand out:

Timing patterns — We see massive redemption spikes around product launches. When a new iPhone or PlayStation drops, gift card redemptions surge 200-300% above baseline for that week.

Category preferences — Gift card shoppers over-index in:

Category	Index vs. Cash Shoppers
Mobile phones	1.4x
Gaming	1.6x
Headphones/Audio	1.5x
Smart home	1.3x

The upgrade phenomenon — About 68% of gift card users end up spending more than their card value. They use the card as a "down payment" on something better than they'd normally buy themselves.

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On Fraud Prevention

Q: Gift card fraud is a major industry concern. How are you addressing it?

A: This is something we take extremely seriously. We've implemented:

1. Activation delays — Cards aren't usable for 24 hours after purchase, which helps catch fraudulent transactions
2. Velocity limits — Caps on how many cards can be purchased or redeemed in short windows
3. AI monitoring — Machine learning models that flag suspicious patterns
4. Staff training — Our Blue Shirts are trained to recognize potential scam victims

The scam awareness piece is crucial. We see elderly customers being coached by phone to buy gift cards for fake "IRS debts" or "grandchild emergencies." Our employees are empowered to intervene.

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On Corporate and B2B Programs

Q: How significant is the corporate gift card business?

A: It's a growth area we're investing heavily in. Companies use Best Buy gift cards for:

• Employee recognition and rewards
• Customer loyalty programs
• Sales incentives
• Holiday gifting programs

The B2B segment is growing faster than consumer — about 25% annually. Corporate buyers appreciate that tech gifts feel more "premium" than generic Visa cards but offer similar flexibility.

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On the Future

Q: Where do you see electronics gift cards heading in the next 3-5 years?

A: Several trends I'm watching:

Integration with trade-ins — Imagine bringing in your old phone and receiving a Best Buy gift card instantly, then immediately applying it to a new purchase. We're building toward that seamless experience.

Subscription bundling — Gift cards that include service components, like a year of Geek Squad protection or Total Tech membership.

Personalization — AI-powered recommendations when someone redeems a gift card, based on the gifter's purchase history or stated occasion.

Sustainability — Moving toward fully recyclable physical cards and digital-first options to reduce environmental impact.

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Closing Thoughts

Q: Any advice for consumers buying electronics gift cards?

A: A few tips:

1. Check for promotions — We frequently run bonus card offers where you get extra value
2. Consider the recipient — A specific-store card often feels more thoughtful than a generic one
3. Keep the receipt — In case the card is lost or stolen, this helps with replacement
4. Don't delay redemption — While our cards don't expire, the sooner they're used, the less chance of being lost or forgotten

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This interview is part of our ongoing Industry Expert Series. Views expressed are those of the interviewee and do not represent editorial positions.