With the holiday season fast approaching, be sure to take advantage of the benefits of Gift Card capabilities. Customizable cards and key tags offer your business the chance to increase brand identity, while providing your customers with a convenient holiday shopping experience.
Online gift cards represent an additional revenue opportunity that would otherwise be lost—or go to a different spa that does offer online gift cards. These are the customers shopping for an out-of-town friend or those shopping for a significant other on Feb. 13th for a Valentine’s Day gift. All the spa needs to do is make such impulse buys possible. “Online spending is up to $24.5 billion and growing every year,” says John Harms, president and CEO of Harms Software. “Online gift cards allow you to get new clients and make money while you sleep.”
Did you know that 20% of total gift card value is never fully redeemed? Clients redeeming gift cards are more likely to purchase full price merchandise, generating more profit for you. Recruiting new customers costs 7-10 times more than keeping existing ones. But it’s a good idea to have a system in place that reduces the percentage of unredeemed gift card value. Remember, the long term value of that customer coming in to redeem the value of their gift card and retaining that client far out ways the unredeemed money. Have you considered a Loyalty/Membership Key Tag program for your clients? These programs have been shown to increase average sales by 10-15%! Your key tag on the customer’s key ring will serve as an advertisement for their friends and family members so don’t miss the free advertising opportunity.
Millennium, with the help of a partner, makes it possible for clients to purchase online instant gift cards that are redeemable at the spa. This service has an upfront cost of $99 and typically you are charged 5% of each gift certificate sale. Five years ago this service blew people away because they couldn’t believe they could sell their services on their websites without a bulky shopping cart. In the process, this service has facilitated $60 million in online sales.
As soon as gift card capabilities are up and running, it’s time for the spa/salon to integrate the new features into its daily operations. Business cards or next-visit cards should say, ‘Ask about our instant online gift card services,’ or ‘Visit us online for gift cards 24 hours a day. Push people to buy online with a client loyalty points system or a gift card system.
“Providing the client accessibility to buy gift cards online, 24 hours a day is priceless”, says Alan Kossof of Chicago’s Teddie Kossof Salon and Spa. Kossof’s spa has used Millennium software since 1998. “We wanted to show our clients that we were trendsetters,” he says. Today, the site features Teddie Web Specials, invites visitors to text Teddies to win a $25 gift card, and advertises printable gift cards. “We’re open seven days a week,” says Kossof. “But what happens after hours? Giving your clients access to making changes or additions to their schedule—that’s customer service. Imagine seeing your clients buying gift cards at 2 a.m. or 3 a.m. You can’t put a price on that.”
NEED A GIFT CARD PARTNER?
For physical gift cards please contact Vic Murray with Vanguard ID at 1.800.323.7432 x212 or Vic@vanguardid.com
For online gift cards please contact SpaBoom at 1.800.940.0458 or email@example.com