It is officially gift card season. If you’re not offering them at your salon, you’re missing out. The gift card industry is expected to reach $160 billion by 2018 and every salon owner needs to be asking themselves “how do I get a piece of that?”
Before I answer that question, here’s a quick hit list on why salon gift cards are a no-brainer:
1 | Convenience = Sales
93 percent of Americans have either given or used a gift card. Why? They are the ultimate in convenience.
Gift giving is stressful and oftentimes challenging. What do I buy? What do they like? What do they not like?
A salon gift card virtually eliminates the need to answer those questions. Let the gift card recipient decide for themselves.
The added beauty of salon gift cards is that you’re giving the gift of a service, which is closer to an experience than a material object. Aren’t we always being told to value experiences over things?
2 | Upsell
A 2010 study on gift cards by FirstData.com reported that 72 percent of gift card shoppers spent more on a purchase than the original value of the gift card. In other words, it’s highly likely that someone redeeming a $50 gift card at your salon is going to end up spending more than $50.
It makes sense. A gift card doesn’t feel like one’s personal money. So what’s a few extra bucks above the card amount?
3 | New business
I’ve mentioned before how much harder it is to get new clients than it is to retain existing ones. So why not have your existing clients do the work for you? Offering your clients salon gift cards as an option turns them into referral/revenue machines. Not only do they spend extra money in your salon to buy the card, each gift card recipient is a potential new client (provided they don’t already go to your salon, of course.)
It’s a great opportunity for existing clients to promote a service or stylist that they particular like. It’s one thing to say to a friend “you should book a cut with Tina – she’s the best” and another to say “I got you a gift card so you can get a cut from Tina.”
Once you have that new client in your salon software system you can begin marketing to them and increase the chances of retaining them over the long term.
Embrace eGift Cards
Consumer preference for eGift Cards is steadily rising. That’s why SalonTarget offers this popular option to our salons and their clients. Through your site’s booking portal a client can purchase an eGift Card for themselves or for a third party. They can enter whatever amount they want, choose from a wide variety of designs, and specify the recipient’s email for the ultimate in convenience.
For the salon owner it’s just one more way to be tapping into this sizeable revenue stream and making the most of your clients’ giving spirit during the holidays and all year long.
Get in touch to learn more about how you can use SalonTarget’s eGiftCard feature and marketing tools to boost revenue at your salon.