The holiday season is in full swing, and most people are busy searching for the perfect gifts for friends and family. Your clients also undoubtedly have their own gift lists. And many will purchase gift cards for at least some of the people they know - especially when they have run out of gift ideas!
In fact, more than 90% of consumers will either buy or receive a gift card in the next year.
So, with gift cards being such a popular gift, now would be a great time to sell them in your studio business. Let me tell you why….
Gift cards can help to grow your sales
Gift cards can be a great income generator for your studio. Offering discounts takes value away from the services and products that you are selling. But gift cards encourage people to return to your business and use the full value of the card. This gives potential new clients an opportunity to try classes in your studio (yay!). And many times, they will become repeat customers - even once their gift card has run out.
Gift cards can help increase awareness of your brand
One of the best types of advertising for your brand is through word of mouth. When a loyal client gives a gift card to family members or friends, they advertise your business for you. And those clients will only do this for businesses that they trust and believe in. By giving a gift card, these loyal clients introduce those they know to your brand - great news for you! And, as they become aware of your brand, you have a good chance to retain them as loyal customers.
You make money - even if the card isn’t fully used
Sad but true - those gift cards don’t always get used. If someone uses part of their gift card, but not all of it, you don’t miss out since you have already made the revenue. This phenomenon is called “breakage” and it (really) common.
Those who redeem gift cards typically spend more
This is the BEST part of gift cards. Statistics show that consumers typically spend 20-40 percent MORE than the value of the gift card when redeeming it. That be a great boost to your bottom line next year!
So, you’ve decided that you like the benefits of adding gift cards to your business. Here are a few things to keep in mind.
There are two types of gift cards that you can offer: standard, physical gift cards and e-cards. Electronic gift cards are great, but physical gift cards are still preferred by most consumers. They also allow you the greater opportunity to upsell products. And having a display with gift cards on the counter of your studio is great for last minute impulse purchases too!
Offer cards in common amounts. Most people spend $25-$50 on a gift card. Consider offering gift cards of $25-$100 for clients. This allows them to choose one that works for their budget.
Consider creating bundled packages for the holidays or other special occasions. If you sell retail items, you can bundle seasonal or specialty items along with a gift card, as a great gift idea. You can also consider bundled services, such as “Get fit for the New Year” or “Bridal fitness” packages that include a certain number of fitness classes or personal training for a special price. This can encourage people to purchase gift cards for someone who is looking to get fit for a special occasion...and can increase your studio income too!
So, if you were on the fence about doing this - don’t be! Offering gift cards adds value to your business by increasing revenue, all while providing convenience and value for your loyal customers.