Every small business owner wants to generate more revenue — and gift cards are a great way to do that. Not only can gift cards result in new customers and higher sales, they also allow you to get money from a customer upfront and supply the product later when the recipient uses the card. Gift cards don’t sell themselves, though. If you put some smart strategy into promoting and selling gift cards, you can see the results in your bottom line.
Your customers love getting something for nothing (doesn’t everyone?). Consider offering a small incentive to boost your gift card sales. Rather than selling gift cards for face value, try selling them for a bit less. For example, consider selling $25 gift cards for $20 or $100 gift cards for $90.
You may feel like you’re losing a bit of money here, but that’s not entirely true, because you’re encouraging your customers to spend more by purchasing a gift card that they may not have otherwise. Also, keep in mind that when recipients use gift cards, they spend an average of $23.41 more than the card’s value.
Be Proactive About Gift Card Sales
You’ve seen gift cards on display at store checkout lanes or in a dedicated gift card section — but these may not be the most effective ways to sell the cards. You can’t count on people buying something unless you’re actively trying to sell it.
Here are some easy ways to market your gift cards:
- Tell your cashiers to ask customers about buying gift cards at checkout
- Send out the occasional marketing email focused on your gift cards
- Promote your gift cards on social media
When you promote your gift cards online, make sure to include images of the gift card designs. Ramp up your gift card marketing during the holiday season, which is prime time for sales.
Go Beyond Your Target Audience
Gift cards are the perfect opportunity to run ads for demographics outside your target market. If a certain demographic often buys gifts for those in your target market, then you can target those gift-buyers as well. For example, if you sell women’s clothes, consider marketing your gift cards to boyfriends, husbands, and fathers instead of limiting your marketing efforts to women alone.
Update Your Gift Card Designs for Special Occasions
Gift cards are already a popular item around holidays, but you can make them even more attractive by coming out with new designs related to the occasion. Think Christmas trees and reindeer in December or hearts and roses before Valentine’s Day. Consumers like to buy gift cards in the spirit of the holiday, and if they shop with you frequently, new card designs catch their attention. Updated card designs are also a good excuse to put up some card pics on social media.
The right sales tactics can make a huge difference when it comes to your gift cards. Use your gift card marketing and sales to reach out to new audiences with targeted marketing strategies.