The LAST 5 Good Reasons to Sell Gift Cards I?m Gonna Give You
The LAST 5 Good Reasons to Sell Gift Cards I’m Gonna Give You
By Sean Kelly, President, IdeaFarm
As mentioned previously in 5 Good Reasons to Sell - And I Mean SELL - Gift Cards, I made the point that even a single unit retailer can tap into the many benfits of a modern gift card program.
Here are 5 more advantages to consider:
Need a good reason to fire up your gift card (or gift certificate) program? Here are 5 FINAL reasons that our clients are fired up about gift card sales.
11. Increase security. Modern gift card programs offer greater security and fraud prevention than their paper predecessors. If you’re still issuing paper gift certificates, you’re begging for trouble. Or you’ve got it and don’t realize it yet.
12. Speed transaction time. High traffic locations, such as convenience stores and coffee shops, have reported faster transaction times for those redeeming gift or stored value cards.
13. Build your brand. The exchange of your gift cards reinforces the desirability and strength of your brand. Harley Davidson gift cards, sold with a unique logo billfold, are popular items among the riding community.
14. Open new potential sales outlets. Gift cards are enabling some retailers to expand outside of their own four walls. Chili’s and other national gift cards are reportedly being sold through Safeway, CVS and Walgreens outlets, and Subway sells gift cards through third-party grocery stores and major retailers. Restaurateurs have leased mall kiosks to sell gift cards and promote awareness.
15. Boost slower sales months. A great benefit of gift cards for restaurants and retailers is that it provides them with an easy, popular product to sell in the busy holiday months, and then increases traffic and sales with redemption traffic in the typically slower months of January and February. Additionally, gift cards given as birthday gifts spread sales throughout the year.
And as an added bonus, here is one more reason you should be firing up your gift card or gift certificate program:
16. If you don’t sell gift cards to your customers, your competitors will.
Well, if 16 good reasons isn’t good enough for you, keep doing what you’re doing. I’ll just settle for another tie this holiday.
Sean Kelly is Founder and President of IdeaFarm, a leading brand-development and local store marketing firm.
©2005 SK&A, Inc.
5 MORE Good Reasons to Sell Gift Cards
5 Good Reasons to Aggressively Promote Gift Cards.
By Sean Kelly, President, IdeaFarm
As mentioned previously in 5 Good Reasons to Sell - And I Mean SELL - Gift Cards, I made the point that even a single unit retailer can tap into the many benfits of a modern gift card program.
Here are 5 more advantages to consider:
Need a good reason to fire up your gift card (or gift certificate) program? Here are 5 good reasons that our clients are fired up about gift card sales.
6. Gain “Found” money. Operators who sell gift certificates and cards might benefit from both the “float” (the difference between the time the gift is purchased and redeemed, which may be as long as two or three weeks), and the fact that, according to industry sources, some 10 to 15 percent of all gift cards are never redeemed.
7. Raise average sales. An estimated 64% of retail gift card users spend more than the face value of the card they redeem. Restaurant customers who know their meal is already paid for are more likely to buy extras, like dessert, appetizers or an extra glass of wine. The same is true for other retail and service purchases.
8. Gain marketing insight. Electronic gift cards can offer a wealth of demographic information. Operators can target these customers later, using information compiled from the certificate purchase to send them offers tailored to their needs. Some card programs gives card users a customized incentive offer on the back of their receipt, tailored to their purchasing habits.
9. Make barter easy. Many restaurants pay for radio andother promotions by trading the value of the card for the airtime. She also notes that trading cards may enable you to get radio (or other) advertising without paying cash, while the giveaways spread the word about your brand and the cards you sell.
10. “Incentivise” employees. Gift cards can be used as a perk or reward for employees, and can be sold at an employee discount for them to use as holiday gifts. Add-on sales of gift cards can also be the basis of internal sales contests and competitions.
Still not convinced? On Monday, we’ll provide you with Even 5 MORE Reasons to Sell Gift Card* If that doesn’t work, we’ll just get our gift cards from your competitor!
* for the acutely marketing impaired
5 Good Reasons to Sell - And I Mean SELL - Gift Cards
5 Good Reasons to Aggressively Promote Gift Cards.
By Sean Kelly, President, IdeaFarm
Even if you are a single unit retailer, modern gift card programs can make a big difference to your cash flow and bottomline for only a small investment.
Need a good reason to fire up your gift card (or gift certificate) program? Here are 5 good reasons that our clients are fired up about gift card sales.
1. Increase purchasing convenience. Gift cards provide a convenient gift-giving solution for your customers. Also, many appreciate the convenience of being able to reload and use stored-value cards.
2. Leverage customer loyalty. Maximize the good will you’ve worked so hard to generate by selling gift cards to those who know – and love – your brand. Give your customers a chance to share their enthusiasm for your company with their friends who have similar interests and purchasing needs.
3. Leverage your Web site. Even businesses without tangible eCommerce products can leverage their Web site traffic through online gift cards. Those who do can also tap into the convenience-driven market for all-electronic gift certificates (e-cards) designed specifically for Internet redemption. You can even add a component that allows customers to check the balance of reloadable cards on your website… increasing your website traffic.
4. Gain new customers for free – Current customers who give gift cards to newcomers are basically paying to market your business for you. The recipient’s trial visit gives you the opportunity to transform a new customer into a customer for life.
5. Put a “billboard in their wallets” - When a recipient carries your brand’s gift certificate or card in their wallet, they are being constantly reminded to visit your business. It’s like having a billboard in your customer’s wallet… A billboard someone else paid for!
Still not convinced? Come back soon for 5 More Good Reasons to Sell Gift Cards, and Even 5 MORE Reasons to Sell Gift Card*
* for the acutely marketing impaired