We’ll let you in on a little secret the retail industry has known for decades – gift cards are an important source of profit for three reasons. 1. Clients with gift cards spend more. Studies show they spend an average of $20 dollars beyond the value of the gift card. 2. They are more likely to choose your salon for a service because they have a gift card. 3. Many gift cards go unredeemed. The statistics vary widely business to business, but it’s safe to say that a significant portion of purchased gift cards are never redeemed which means “free money” for the business.
So if you’re not selling gift cards in your salon suite, you should be. Here are five ways to merchandise and sell gift cards to maximize revenue for your business:
1. Invest in actual gift cards. For small businesses, it’s common to see e-gift certificates and printable paper ones, but investing in actual gift cards for your suite is a good idea. It makes a gift card purchase more “giftable,” legitimizes your small business and establishes your branding. If you use Square for point of purchase, they have a gift card program for small business.
2. Display gift cards in your suite. Make sure clients see and know you have gift cards available for purchase. Get an inexpensive display rack and cards to hold the gift cards when purchased. Seasonal cards are a good choice, from Thank You to Happy Birthday and Mother’s Day themes.
3. Make sure gift card promotion is on your marketing calendar. Gift card specials and reminders should hit hard in October, November and December when gift card searches and purchases soar for the holiday season. Make gift cards a topic of your text marketing, email marketing and social ad content during these months.
4. Bundle gift cards and retail products. Make a small gift set or retail item free with gift card purchase. This ups the marketability of gift cards for gifting season.
5. Mention gift cards. Many suite owners are reluctant to push retail products but a proactive “Do you need any gift cards for holiday gifts?” question before a client pays can go a long way to boosting sales.