If you are still using paper gift certificates in your Retail Store or Restaurant its time to consider moving to a system that allows you to increase sales, improve efficiencies, build brand awareness, improve tracking and streamline reconciliation.
Many are not aware that you can launch a gift and loyalty system no matter the size of business or the type. Many merchants are taking advantage of the now affordable options that can replace the old manual paper based gift certificate systems.
Launching a successful program is easy if you market and promote the program. Many gift card providers offer a marketing kit and material to help your customers notice you sell them. You can do many things to help generate extra cash without breaking the bank!
What is a Gift Card?
It is a plastic card that can be printed with a business logo or custom graphics. The card can be sold and value added after payment is taken. The consumer can then give the card as gift to family or friends and can be used in the store as cash.
Over 83% of adults have received or given a gift card in the past. They are very popular and make it an easy gift for that hard to buy for person. It allows the recipient to get what they want.
Why Do People Buy Them?
Many consumers are very aware of gift cards and often buy them for family or friends. They are normally bought for birthdays, graduations, anniversaries, holidays, congratulations or other special time or event. Gift cards are sold year around and not just during the holidays.
Marketing Ideas
Put signs at the point of sale or check out area.
Example: Promote with signs, stickers, table tents, place mats, check binders, buttons or other printed item.
Have an internal contest with the staff or employees.
Example: Have each person upsell or mention to the customers. Person who gets the most sales on cards gets a prize or cash bonus.
Offer a discount for customers to purchase a gift card.
Example: Buy a $50.00 gift card and receive $55.00 on the card.
Activate a stack of cards and pass them out in town to bring in new customers.
Example: Hand out $5.00 gift card to attract customers to visit your store or restaurant.
Purchase sales leads with new homeowners within 20 miles of your location.
Example: Send letter to them welcoming them to the neighborhood.
Advertise gift cards in local paper or online
Example: Offer incentive to purchase a card at the location with an expiration date.
Getting set up to sell these cards is fairly easy. You can do a search online for providers that offer solutions to merchants. You can contact your credit card processing company and they should offer them.
Things to Look for in a Solution
- Real time tracking/reporting online
- 24-7 technical support and customer service
- Quality print and fast turn around time
- Marketing material and POS signs
- Artwork design and digital proofing
- Competitive monthly fees and card pricing
Keep in mind that in order to process gift cards you must have a credit card terminal, POS System that is compatible with the program that you want. Your sales person will be able to guide you through this. In some cases you may not have a compatible terminal so be open to purchasing a newer terminal that will allow for multiple programs to be added into the machine. Terminals are fairly cheap these days and should not be an issue.
What kind of fees or cost do these gift card systems have?
Normally programs have two main pricing models:
Transaction based model
Has a transaction fee per swipe and monthly service fee. Typical lifecycle of a gift card is about 3.2 swipes. Keep in mind even though you’re getting charged a transaction fee you only get charged when cards are swiped.
Pros: It’s more affordable and you pay as you go other than the small monthly service fee.
Flat Fee per Month
Has a monthly flat fee per month with a transaction cap per year. After a year they calculate any overage in transactions and bill you if you went over the typical 3000+ transactions.
Cons: Can be more expensive for lower volume merchants. Monthly fee can be as high as $49.95+ so with low volume other than holidays its not the best option.
You might have heard that cash does not grow on trees so you must do what you can to help build your brand awareness and win over customers. Using gift cards to increase sales and tracking are very important.
If you do not want to move to the electronic gift card systems then you just might be loosing thousands of dollars in revenues each year.
Get started today…..don’t delay!
Thanks