There’s no question that the holiday season is gift card season, which is great news for your year-end profits! As a retailer, you may be wondering how you can harness this holiday momentum into even more gift card sales in the new year. So, let’s take a look at a few ways that you can accomplish this goal.
1. Target the Belated Gift Givers
Not everyone gets all their holiday shopping done by December. For those who are buying gifts for distant family members, acquaintances, and business contacts, attract them to the idea of sending a gift card. Since it’s transportable and easy to send, it’s the right choice for anyone that accidentally got left off the gift list—or anyone who dropped off a surprise gift who needs to have the favor returned.
2. Run a Winter Clearance Sale
Ah, January. The month where throngs of consumers flock to stores to return unwanted gifts. In the flurry of returns, you can catch two prospective customers here. The first are the ones who want to “pick up a few things”—including gift cards— while they’re making their returns. The others are those who are always planning ahead. These proactive types may have birthdays, graduations, and even next year’s holiday season in mind. Reward them for thinking ahead by offering a 25% discount on any amount put on a gift card. (Since the national average gift card redemption rate hovers at around 75%, that 25% discount is accounted for by the gift cards that go unredeemed.)
3. Upsell on Returns
Returns may be frustrating to accept and process, but they provide a small window of opportunity for you to interact with a potential customer. If they’ve received a gift from a retailer that’s not of interest to them, take the opportunity to suggest they return it for a gift card that can be given to someone who loves fly fishing or new technology. When someone returns an item, suggest that they add a little more to the gift card to make it a round number that can be used as a gift for someone else. This helpful suggestion may just win you another customer.
4. Appeal to New Year’s Resolutions
A season of indulgence and merrymaking is often followed by a time of goal setting, prioritization, and recommitment. If your industry can pivot to New Year’s resolution marketing, go for it! After the holidays, there’s increased interest in physical fitness and health, self-care, organization, productivity tools, and more. Even if you’re outside of the traditional resolution industries, see if you can tweak your marketing messaging to reflect consumer concerns during this time.
5. Remember that Holiday Gift Card Sales Benefit Your Yearly Revenue
Whether your gift card promotion introduced a new customer to your product or put you so far into the black that you exceeded quarterly earnings goals, gift cards provide stability in revenue that pays off every single month of the year. To set up a consultation to plan a gift card promotion that can transform your revenue model, reach out to Card Market for new ideas, gorgeous designs, and a gift card solution that your customers will love. (And, if you reach out before the end of the year, we’re offering free setup on our Card Market Pro system!)