Here’s a newsflash for you: The holiday shopping season isn’t over! Not if your store sells gift cards, it isn’t. When you sell gift cards, you naturally encourage holiday shoppers to come to your place of business to help them complete their holiday shopping. Once the holidays are over, “gift card redemption season” starts! Consider the fact that January is the month when gift card recipients most often continue the holiday shopping trend.
Of course, they’re shopping for themselves. And if they have your store’s gift cards in their hands, it gives you ample opportunities to continue to enjoy increased sales numbers all throughout January and even into the months to come. Don’t consider this month one when sales are automatically bound to dip. It’s important to continue to promote your store’s sales to encourage gift card recipients and other shoppers alike to keep visiting you.
“The bright side of gift-card redemption is that they can drive new customers to your business,” says Ian Payton on Telsec.net, “Having a plan for gift-card redemption is a good business practice. Think about this — the giver of the card has made a personal endorsement of your business or your services by purchasing the card. When they give it to the recipient, it really is more than a gift – it is an invitation.”
Gift card recipients often spend more than the value of their cards.
Because of this fact, it’s wise to treat January no differently than you would treat December. Offer discounts, hold contests and provide other incentives that will encourage people to not just visit you once, but become loyal supporters. After all, the selling of your gift cards represents numerous referrals to your brand. Why not take advantage of your new opportunities to boost your sales?
A “benefit of having the gift card redeemed in a slower month like January is that it gives you a chance to upsell or sell other products that may compliment it,” notes Payton, “According to a consumer insight study by First Data, 72% of customers actually end up spending more than the value of the gift card.”
Are you selling gift cards in your store?
Clearly, there’s no way to enjoy the benefits of holiday gift cards sales in January if you don’t sell gift cards. So why not begin right away? Don’t assume that gift cards aren’t popular all year round. They are regularly bought as gifts for all types of occasions including birthdays, anniversaries, weddings and graduations. And let’s not forget that Valentine’s Day is less than a month away!
At Canadian POS Corporation, we offer Canadian business owners the opportunity to take advantage of electronic gift cards. They are known to encourage repeat business, attract new customers and boost sales all year long. The booming stored value card business accounts for billions of dollars per year in sales for retailers nationwide!