How to Increase Revenue with Gift Card Sales
By Bernice Pierson
You found your location, you hired your staff, you priced your services and products - now you are ready for business. The holiday season is quickly approaching, and do you know what that means? It’s the perfect time of year to prepare your business for an additional revenue stream with gift card sales both online and in-person.
Gift card sales flourish throughout November and December so don’t procrastinate. Spend time now updating your website as well as designing and ordering your gift cards.
Why your business needs to sell gift cards:
Compete with national and larger stores.
Consumers naturally consider gift cards when holiday shopping but they value convenience over uniqueness. Your business has a steady flow of potential gift card purchasers every day. Be sure to open that income generator by offering gift cards online and at your front desk.
Showcase your gift cards and leverage brand advocacy.
Businesses tend to hide away their gift cards under the front desk or merely mention gift cards with a simple sign. Showcase your beautiful cards and make them appealing. Put a gift card in an eye-catching frame on your front desk and make sure your staff asks every client if they’d like to buy one.
With the branded web gift card link, clients can purchase gift cards from within your branded online experience. When a client clicks on the link, that gift card is added to their shopping cart on your website. Not only does this promote your brand, but it allows your clients to easily purchase gift cards on desktop or mobile.
Existing loyal customers may want to share their love for your business with others by purchasing them a gift card and introducing them to their favorite place.
Upsell and capture the difference.
Customers shopping with gift cards are less price-sensitive. In fact, 72% of gift card recipients spend about 38% higher than the face value of their cards. Many shoppers with gift cards will buy an item they hadn’t planned on buying or a more expensive version of the item they had planned on buying.
Attract new customers.
Gift cards have the potential of bringing in new customers. Gift cards given as gifts to consumers who’ve never shopped at your studio will force them into your place to retrieve the value of the card. This introduces them to your brand and products. With incentives for the giver such as “Buy a gift card and get a $10 credit for yourself” or an incentive for the receiver such as “Use the gift card by a certain date to receive a 15% discount,” both parties can be rewarded and encouraged to return.