Gift cards are one of my favorite presents to receive during the holidays. Even if I don’t know what I want, I do know where I like to shop. Getting some “cash” to spend at said retailers is always a win in my book.
Gift cards can work to the advantage of the business. First, you receive the money up front without losing inventory. Second, gift card recipients are often more likely to spend above and beyond the amount on the card, tacking on additional profits. Third, it can bring new customers into your business.
However, sometimes people stray away from giving gift cards because they see them as impersonal. So how do you combat this stigma and boost your gift card sales?
- Offer incentives. Add on a bonus mini gift for customers who purchase a gift card. For example, offer a free $5 gift card with a $25 gift card purchase.
- Sell an experience. Because gift cards receive the bad rap of being impersonal or lazy, play up the overall experience of shopping at your establishment.
- Be online. Customers purchase gift cards from all over the world. If you are a local shop, don’t restrict the ability to provide a gift card. It will also attract those last-minute shoppers in a bind.
- Advertise. Tell your customers gift cards are available (and a great option) by posting a sign, verbally suggesting it, or talking about them on your social media and website.
Encourage your patrons to try gift cards this holiday season. If the recipients are anything like me, it will indeed be a very merry Christmas.