If you’re not promoting the sale of gift cards/certificates this holiday, you’re making a big mistake! Cardhub.com projects that gift card sales will reach $131 billion this year continuing a solid streak of increases since 2010. For small businesses that continue to struggle competing with large box stores, this is one place to level the playing field.
Approximately 33% of gift cards never get redeemed so that’s 100% profit for the business owner.
56% of customers who redeem gift cards spend 20% more than the value of the card.
The card itself is like having a small billboard in the wallet of current and potential customers to remind them about your business.
Gift cards are a great way to generate repeat business
Ideas for selling more gift cards:
- At the time of purchase ask your customer if they would be interested in adding a gift card to their order. (You want fries with that?)
- Offer visible promotional displays near the cash register, in store windows, and on the street, if applicable.
- Promote gift card offerings in all e-mail signatures, newsletters and social media postings.
- Offer discounts. For example, “Today only you can purchase a $50 gift card for $45.”(Remember 33% of the cards never get redeemed.)
- Offer a free product sample with purchase of gift card.
Whether the holidays snuck up on them, they’re too busy enjoying this warm Pennsylvania weather or they’re like me and put off dreaded shopping until the last possible minute, shoppers are out there scrambling to find gifts.
So, what are you waiting for?! Start pushing those gift cards today!
Keith D. Yurgosky
The University of Scranton
Small Business Development Center