Looking for a successful promotion to implement this time of year that increases cash flow and client retention? Offer specials for gift card purchases! Throughout the spring and summer, your clients are celebrating mothers, fathers, teachers, graduates, and much more, so it’s a great time to help them effortlessly purchase the perfect gift.
Why Gift Cards are Profitable
Selling and promoting gift cards are a great way to rake in more revenue all year long. In fact, 72% of gift card holders spend more than the amount of their card, and on average spend 20% more than the gift card value. On top of increasing average ticket and overall revenue, a good gift card strategy can also increase your frequency of visit as well as client retention.
As your clients spend more time on their mobile devices, it may be beneficial to your business to allow customers to purchase e-gift cards right from your website. Online gift card sales are growing by 29% per year and your clients will appreciate the convenience. Furthermore, the amount loaded on a digital gift card is around 10-15% more and a plastic card. So, make sure if you decide to implement e-gift cards, you have a clear “Get a gift card” call-to-action on your website.
Planning and Marketing Your Promotions
Taking the time to think through your gift card promotions can really help maximize revenue. A good gift card strategy can bring back not just one, but two people to your salon or spa. The odds are they will spend MORE than their gift card and you also have an opportunity to re-book them for their next service. Some examples of promotions are:
- Buy one, get one 50% off.
- Spend $100 and get a $10 gift card.
- Buy a $25 gift card and receive a $5 gift card free.
- With the purchase of a $200 gift card, receive a FREE gift set!
- Buy a $200 gift card and receive a $20 gift card free.
- Buy a product, get a $5 gift card.
- Partner with a charity and a portion of your gift card sales goes to the charity.
Once you have your promotions set, you can then create a marketing campaign. If you have salon or spa software, you can easily aggregate a targeted list of clients and send them an email that showcases your gift card promotions. Don’t forget to utilize your social media to advertise your gift cards as well. Even a small group of followers can have a high conversion rate if the promotion is enticing.
Digital marketing shouldn’t be the only vehicle for promoting your specials. Your customers won’t buy gift cards if they don’t know that they exist. Here are some additional ways you can make a splash in your salon or spa to increase awareness:
- Point-of-sale display with the promotion.
- In-store signage.
- Check-out display of the actual gift cards—make sure these are attractive-looking cards. Many consumers base their purchase decision based off of what the cards look like.
- Window signage.
- Create team shirts that talk to the gift card promotion.
- Create a culture where your staff talks about the gift card promotion throughout the visit.
- On-hold messaging.
- Host an event in your salon/spa for your top spenders where they can build custom baskets for gifts. Include a gift card with each basket.
Tracking Gift Card Sales
Gift cards are outstanding liabilities to your business. It’s always in your best interest to keep track of gift cards that have not been used or with outstanding balances. Your software should provide a report to provide a list of unused gift cards, gift cards about to expire, and gift cards with remaining balances. Reach out to the cardholders via email, phone or text reminding them to redeem the gift card before it’s too late. Not only will this get the client back into your salon or spa, but the gesture will most likely woo them, which will strengthen your relationship and keep them returning.