The Fortune Is In The Gift Card
So you’ve launched your hair extension business. You have your business cards, branded satin bags, website, and hang ties. One thing you may not have thought of is gift cards! Gifts cards are a bag business, can they can help you achieve massive success in your hair extensions business. Let’s check out the statistics; in a study conducted by Socratic Technologies and Vantiv, 74% of consumers say they like receiving gift cards as a holiday gift. If you’ve never considered gift cards in your hair extension business, here are a few ways they can increase your profits.
1. Increased Revenue
Gift card sales bring in money when you sell them, but they also offer an opportunity for additional revenue when they’re redeemed. The average card user will spend an extra $38 on top of the card's pre-loaded amount, according to a survey by First Data Shoppers with gift cards are also more likely to purchase some of your higher-priced items since they see the gift card as being “free money” to spend. And here’s another fun revenue fact: 72% of people who go to a store to purchase a gift card for someone else end up paying money at the on themselves, according to Retail Touchpoints. Let’s put this into perspective. One customer purchases a gift card worth $50 for their sister that loves hair extensions. She buys one bundle with the gift card and decides to purchase two more bundles and a closure because the gift card covered the cost of the first bundle. Now this customer has spent more money with you than they would have without a gift card.
2. New Business ExposureGift cards will introduce your business to new customers! Loyal customers that know and love your business will purchase gift cards for their friends, helping to grow your customer base. You can also give gift cards when you’re asked to donate to a local fundraising event. By providing a gift card instead of a product or service, you open the door for the recipient to use their prize and perhaps spend extra money in the process. Providing gift cards to fundraisers also boosts your brand recognition as well as creates a reputation of being a business owner who supports their community.
3. Increased Website Traffic
Digital gift cards are becoming increasingly popular, with an estimated value if $15 billion according to Gift Card Granny. A customer can easily purchase a gift card via your website, which is perfect for last minute gifts. You will email the gift card to the recipient, which save you money on producing physical gift cards.
4. Promote LoyaltyThe holidays are coming up, and this is the perfect time to increase loyalty with your customers. For example, you can offer a free $10 gift card to customers who purchase over $100 in gift cards. This offer will increase holiday sales by driving customers to make more significant purchases while improving sales in the first quarter of the new year.
5. Build RelationshipsWith an e-gift card program, you have the opportunity to connect with gift givers and receivers in a new way, with multiple touch-points. Recipients may visit your site to activate the gift card, check the balance, reload the gift card, see what’s on sale, check store hours and so forth. If the gift card is related to a loyalty program, then you can reward customers with each visit, purchase and reload. Rewards, tailored to customer buying habits, lead to repeat business and brand fans. Learn more on the benefits of reloadable gift cards.
6. Use Gift Cards To Keep Track of Returns and Exchanges
Although it isn't wise to allow returns in a hair extensions business due to high risk and loss, you may allow customers to return unused hair within the first 24 hours of delivery. If a customer wants to return hair to your store but doesn’t have a receipt, offering a gift card is a great way to keep their dollars in your business. By providing the customer with an option, you’re more likely to keep them satisfied and coming back to spend the amount later. If you have a physical location, you can also use gift cards as a reward for employees and customers. Offer your best salesperson a gift card as a reward for their hard work, or give your VIP customers a gift card as a thank you. You can also incorporate gift cards into your loyalty program as a reward for multiple purchases with your brand.