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Steve GomezSteve Gomez
Steve GomezSteve Gomez
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How To Give Gift Card Sales A Boost!

How To Give Gift Card Sales A Boost!

December 5, 2017

Gift card sales are typically a big part of holiday sales each year. While we may take it for granted that we will see a spike in gift card sales, it is something to be strategic about. Creating a plan to drive gift card sales during the holidays can add even more income and new customers in the months ahead. Here are a four steps we recommend to get you prepared along with a few marketing ideas.

  1. Analyze. Review the last two years of gift cards sales results. Look for sales variance and peak weekends during the holiday season. Is there a certain denomination sold over others, meaning, you sell more $50 gift cards than $100 gift cards, etc. This information informs your decision making process, helping you to position marketing promotions at the right time and at the right price point.
  2. Marketing. Based on your analysis, meet with your team and develop your promotions. Design your print collateral and social media messaging, schedule posts to hit on a consistent basis to advertise to your followers.
  3. Systems. Create tracking systems to measure progress, and scripts so that everyone on the team knows what to say and how to answer questions. It is also a good idea to assign tasks to team members during the season, from tracking daily results to social media management. In essence, do the prep work ahead so things run smoothly.
  4. Incentives. Create an incentive for your front desk associates or technicians to drive gift card sales. It can be based on total number sold or total dollar amount. Prizes can include gift cards of their own to local businesses or complimentary education or salon/spa equipment.
  5. Money Management. This is the most important part! Track your gift card redemption percentage so you know how much money to keep in the bank account to cover labor and other hard costs of service when the gift cards walk back in the door in the first four months of the upcoming year. For example, if you your redemption rate is 60% then keep 70% of the money in the bank to cover yourself. I added 10% for a little cushion. Be smart with the money and it can work for you!

Let’s now turn our attention to a few gift card promotional ideas that can help you boost sales:

  1. Offer a $25 gift card with the purchase of a color service or with the purchase of a facial or massage series.
  2. Purchase 2 $25 gift cards and get a third free. (This is subliminal, clients see 3 as being a lot more than buying one of anything and a $25 each sounds less than $50 that is being spent.)
  3. Purchase a gift card for friends or family that have never been into the salon or spa ($50 value minimum purchase) and receive a complimentary service upgrade (add on services can be a gloss, conditioning treatment, accent highlights, 15 minute chair massage, mini-hand facial, keep it short & sweet).
  4. For every gift card purchased we will donate a percentage to a local charity.

I hope this gets your creative juices flowing. Take the time now to come up with a plan that works for you and helps make your gift card sales soar this holiday season.

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Steve Gomez Business Coach

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