The holidays are a time for giving, but because not everyone is easy to shop for, gift cards have become a go-to present that is sure to make just about any recipient happy. According to Deloitte’s 29th annual holiday shopping survey, gift cards are the top present respondents hope to receive this holiday season (37 percent) and the second most popular gift consumers plan on purchasing (43 percent).
In addition to being a popular choice for both givers and receivers, gift cards can help many small businesses increase profits and attract new clients. Gift Card Granny reports that 61 percent of gift card recipients spend more than the amount of the gift cards, and 75 percent of those individuals spend more than 60 percent of the value of the original gift card. Moreover, 55 percent of gift card recipients require more than one shopping trip to spend the balance of their gift card. This is good news for small businesses that hope to convert first-time shoppers into loyal clients.
Beauty Collection, a beauty product retailer with multiple locations in the Los Angeles area, has successfully utilized gift card sales to boost business and attract new clients using a few simple strategies that other small business retailers can tap into as well. According to Amanda Mandelcorn, marketing specialist at Beauty Collection, the store sees many new clients during and after the holiday season who are visiting to redeem gift cards they received as presents. For example, some local businesses give their employees Beauty Collection gift cards, which creates a lot of exposure and awareness of the store, says Mandelcorn. “The tie between receiving the gift cards and the customers then sharing their hauls with their fellow co-workers causes a very strong and unique type of branding that creates loyal and repeat shoppers,” she says.
In order to effectively sell more gift cards, especially during the holiday season, Mandelcorn says Beauty Collection promotes them whenever possible to shoppers. She believes the most important part of advertising gift cards is to have team members constantly talk about them and make shoppers aware of them. At Beauty Collection, the cards are included in the store’s holiday gift guide, and there is signage throughout each store to remind shoppers that gift cards can be the perfect gift for anyone, especially friends and loved ones who are difficult to shop for. “A gift card is a desirable solution for a customer who can’t make a final decision on a gift, and stops them from than purchasing that gift elsewhere,” says Mandelcorn.
Beauty Collection also utilizes promotions involving gift cards around the holiday season, another effective strategy retailers can utilize to spur sales. Try offering a $20 gift card for every $100 purchase customers make at the store, for example, during the month of December.
Gift cards are a win-win-win for the customer, the recipient and the small business. If retailers focus on making shoppers aware of the availability of gift cards whenever possible through conversation, promotions and signage this holiday season, they can boost sales and gain new clients, who are sure to fall in love at first swipe.