Not too long ago, the only time I received gift cards was as a stocking stuffer during the holidays or as an add-on to a larger gift-wrapped package. Times are changing and today, in many cases, the cards are simply replacing the packages. As of 2007, gift card sales have accelerated to reach nearly $97 billion dollars nationwide annually. With the increase in popularity, every restaurant and retailer from a single site mom and pop store to large global brands are recognizing gift cards as a great way to secure future business and provide customers with a great, easy gift idea. It’s not enough to just offer gift cards at the cashier’s stand. In today’s economy, every penny counts and the smart restaurateur should be looking at innovative ways to accelerate gift card sales…especially around the holidays. Here are a couple suggestions that can be implemented to get the most out of a gift card program and drive more profit straight to the bottom line.
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Let’s face it…everyone judge’s a book by its cover – presentation is everything. 84% of consumers are more likely to buy a gift card if it comes with free packaging. Nobody wants to have to “wrap” a gift card. Create packaging that showcases your brand and gives consumers a memorable way to present their gift cards.
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Step outside the box and get creative with your marketing. Create a direct mail, email marketing and/or advertising campaign to send to your existing customer database offering them gift cards at a discounted rate. Advertise any gift card promotions on your Web site and setup an eCommerce portal to sell gift cards directly from your Web site.
Last year, an innovative marketing campaign was created by one of our customers, Soffritto Italian Grill, to take advantage of “Black Friday.” Soffritto’s offered a buy one get one half off sales discount for gift cards purchased on Black Friday. The owner ran advertisements in the restaurant’s newsletter, placed ads in the local news journal and promoted the special on the restaurant’s marquis. On Black Friday, the special ran from 8 am until 3 pm. During those seven hours, the restaurant staff sold over $25,000 worth of gift cards, with 19% of the cards going unredeemed.
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It doesn’t matter what the prize is…everyone loves a contest. People are competitive by nature. Create employee contests to drive the right behaviors in your staff and accelerate gift card sales. Give your servers and/or cashiers a $50-100 gift card to the store of their choice for hitting a set threshold of gift card sales during their shift.
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Develop B to B marketing programs targeting businesses in your area. Identify and contact employers and businesses within your immediate store area and offer your gift cards at a discounted bulk rate. Employers can use your gift cards as holiday gifts, in sales contests or as rewards for good behavior. In addition, employees coming into your store to redeem gift cards are good candidates for repeat business.
Remember, every dollar on your gift card is a dollar that can’t be spent elsewhere. So ask yourself, with $97 billion dollars in gift cards sold annually – are you getting your fair share? What are some creative ways that you’ve increased your gift card sales?
