- On August 6, 2015
It’s that time of year alread… time to start planning for a successful holiday season. Don’t know where to start?? We can help!
Gift cards are one of the most popular gift-giving options among consumers. Studies show that about 81 percent of American adults will purchase at least one gift card during the holiday season according to a Retail Federation survey. This makes gift cards one of the most popular Christmas presents of all.
Within the spa and salon industry, gift card sales should represent a large portion of your revenue. It’s an easy revenue stream to maximize if it is positioned, marketed, and managed properly.
Read on to discover how to elevate your success with gift card sales while avoiding costly mistakes.
10 Gift Card Success Strategies
- Gift card funds management: Open a separate account for gift card sales. Gift card sales should only count as a sale when the guest redeems the card. This will help you avoid the practice of borrowing from Peter to pay Paul. Improper accounting can get out of hand very quickly and cause your business to be at financial risk.
- Maximize Gift Card Revenue with Retail: Create gift card offers that include retail products. Maximize revenue by offering retail options with gift card sales. This will enhance gift giving, increase your retail sales, and strengthen the size of each gift card transaction.
- Online Gift Card Sales: Make a big splash about gift card giving on your website. This is often a missed opportunity. Place a gift card opportunity on each page of your website, not just the home page. Make it easy and enticing for consumers to purchase gift cards.
- Team-Generated Sales: Train the reception team on promoting gift cards. The last phrase your receptionists should say prior to completing the checkout process is, “Any birthdays, anniversaries, or special occasions for someone in your life who would love to have a spa gift card?” This statement alone will remind many of your clients to take action and purchase a gift card now.
- Performance Expectations and Rewards: Set performance targets and offer a reward program for your reception team to promote gift card sales. This will motivate them to ask and offer gift card suggestions increasing your revenue.
- Encourage People to Use Their Gift Cards: Don’t think because someone did not use the gift card that it’s a good thing. It is not. You are losing the opportunity to turn them into a repeat client. Also, if gift cardholders do not redeem the card, you are hurting future sales due to the fact that the person who purchased the gift card for them will not purchase another one. Have a system in place to contact the gift card recipient to encourage them to reserve an appointment and turn them into a client.
- Combine a Gift Card Offer with a Charitable Organization: Many spas receive inquiries to donate to charitable organizations. Normally, spas donate a gift of some sort. Instead, give $10 gift cards to all attendees, include your menu, and invite them to visit your spa. This will provide major exposure for your spa and help you generate many new clients, leading to a lot more revenue.
- Deliver a Great Guest Experience: Teach your team how to treat a first-time gift card user. Show them the potential of this new client and how they could help them earn more money. As mentioned above, gift card clients spend more and come back. A gift card client should be celebrated. It is an opportunity for everyone to benefit from their visit!
- Stay Legal: Be sure to stay current Florida’s laws regarding gift card expiration dates and gift certificates so you don’t get into a legal mess. Be flexible with your redemption guidelines. You don’t want to win the battle but lose the war.
- Buyers’ Info: Currently, most spas focus on receiving the info of the person who is receiving the gift card. That is the norm. However, if you take the time to obtain the complete info of the person who is buying the card…such as name, email address, and phone number, you will be able to segment this person in your database and send specific marketing messages so they will buy your gift cards over and over again.
Get serious about your Gift Card revenue stream and experience exponential growth!
Article by Dori Soukup founder and CEO of InSPArationManagement.com