Throughout the holiday season, gift cards are huge sellers. No matter the industry, gift card sales are usually high because they make such excellent gifts – hence their name. However, once the holiday season is over, gift card sales generally dip. But they don’t have to! There are numerous ways to keep your gift card sales going strong all year long.
Consider the fact that there are always reasons to buy gifts – birthdays, anniversaries, baby births, graduations etc. The holidays may be behind us, but that’s no reason to slack on promoting your gift cards!
Generally speaking, a gift card recipient spends more than the value of his/her gift card. Keep in mind that every time you sell a gift card, you’re not just receiving payment for items that have not yet been sold. You’re also securing the likelihood that the card’s recipient will be spending even more money in your store.
“Gift card sales bring in money when they’re purchased, but they also offer an opportunity for additional revenue when they’re redeemed,” says Stephanie Vozza on Shopify.com, “The average card user will spend an additional $38 on top of the card’s pre-loaded amount, according to a survey by First Data.”
Weddings take place all year round. But when the weather warms up for spring and summer, the number of weddings generally rises. With weddings come gift registries that help consumers locate gifts for brides and grooms to be. As well, couples anticipating babies also tend to set up gift registries. By putting your gift cards on your gift registries, you stand the chance to significantly boost their sales.
“Do you offer a gift registry service?” asks Mi9 Retail, “If so, ensure that gift cards at various denominations can easily be requested by registrants. The same idea applies for wish lists. This is a quick and easy fix, since there’s a gift card for every budget and occasion, and one size fits all!”
Gift card sales are arguably the best form of word-of-mouth advertising your business can receive. Every time one of your cards is given to a person, it’s a declaration that your store is a recommended place to shop. Promoting your gift cards is an excellent advertising strategy for customer base growth.
“Gift cards can expose your business to people who may not have otherwise shopped in your store,” writes Vozza, “Customers who already know and love your business will purchase gift cards for friends, helping to grow your customer base.”
To boost gift card sales in 2019, reward the people who buy them. “Consider offering incentives for purchasing gift cards, especially during peak gift-giving periods,” suggests Mi9 Retail, “For example, a $10 coupon for the purchaser for every $100 in gift cards purchased. Some retailers even offer rewards for reloading gift cards. Since cardholders will usually spend more than the face value of the cards, these types of promotions typically finance themselves.”