With the holiday season approaching, gift cards are among the most requested items. Here are a few tips for selling them and the benefits of a simple gift card program.
TIPS:
- Impulse Buyers – Stock up and make sure you have them within eye-sight at your register. Your impulse buyer will purchase for a family member, colleague, teacher, or friend.
- Up-selling – Educate yourself and your staff. Consumers like to be enticed. Offer them the pleasure and advantage. If you are not up-selling your customers, you miss out on a LOT of revenue. It works ask: “I am so happy you and yours enjoyed yourselves this evening. Why not add a gift card for a loved one? Sounds great, right!” As you and your staff master this fantastic tool, you can move on to cross-selling. Suggest other relevant options to your customer: “Did you know the $25.00 gift cards are on sale this week? Buy three and get the fourth for half price.” Or, “Don’t forget to pick up a few cards for your family and friends; they are handy for last-minute needs. Want me to add another card to your order?”
- Lifesaver (Be the “Go-to Merchant”)—We have all done it as consumers. It’s down to the last minute, and we need a gift. If a customer comes in for gift cards and you don’t have them, you lose a sale. Displaying gift cards lets your customers know they can rely on you in a pinch. Be the Hero and “Go-to” merchant. Try it!
BENEFITS:
- Increased Sales—The primary benefit is that your sales numbers will boom! You will generate revenue in advance of sales, and studies show customers spend more than the amount on the card.
- Marketing – Get the word out about your establishment. Gift cards are like mini billboards. Your branding speaks volumes.
- Breakage refers to the amount left on a gift card that is never redeemed. For example, a person with a $100 gift card may purchase $97 and inadvertently toss the card in a drawer or throw it away. This helps your margins.
- Repeat Business—If someone has never heard about your business but receives a $20 gift card for their birthday, Christmas, or even a holiday party, they will find you and maybe become a customer for life!
- Advertising—Your gift cards encourage customers to join loyalty programs, and you will now have the data you need, provided you are using a POS system to capture that data. You can send specials or “ping” them when they drive by your business.
