John Harms on Increasing Gift Card Sales

John Harms

"John, how can I increase my gift card sales?"

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 revenue, a good gift card strategy can also increase your frequency of visit as well as client retention.

Taking the time to think through your gift card promotions, can really help maximize revenue. Some examples of promotions could be: Buy one, get one 50% off; Spend $100 and get $10 gift card; Buy a $100 gift card for $120 value; or the purchase of a $200 gift card receives a FREE gift set! 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.

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. Just within the next few months, there are several holidays and special occasions you can market to such as Mother’s Day, Father’s Day, graduation, wedding season, teacher appreciation, and much more. 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.

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. Your clients will appreciate the convenience. Online gift card sales are growing by 29% per year, and 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.

Gift cards are outstanding liabilities to your business so 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. You can then 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.

A relaxing day at the salon or spa is always a great gift, so help your customers take advantage. By putting these strategies to work, your business will enjoy better profit margins and increased overall revenue.

John Harms
Millennium Systems International, Founder and CEO

About: John Harms, Founder & CEO of Millennium Systems International, creator of Millennium Software, has been designing industry leading salon scheduling software and educating the beauty & wellness industry since 1987. Today Millennium is utilized in thousands of businesses in over 38 countries and operating with approximately 150+ employees worldwide.  Millennium currently runs its corporate headquarters out of New Jersey and its international office is based in the U.K.