Are Gift Cards The Way To Go?

Gift time is coming up and it might be time to consider a gift card program to enhance sales. These cards are becoming more and more popular and there is no question why. Gift cards are an excellent promotion to not only bump up sales but to bring in some cash from customers. And, giving a golf gift card to the avid or beginning golfer will make great holiday gifts.

Golf Business recommends the following things to consider when implementing a gift card program:

When selecting a vendor, answer these questions:

• What is the cost of the program?
• Can the card design be customized?
• Are attractive displays provided?
• Are current customers happy with the vendor?

Remember not to overlook security concerns when using a vendor with computerized processing. Recall that financial records for your store and your customers will be maintained on the vendor’s computers.

Also, to benefit from a gift card program, you have to promote it. Here are some ways to merchandise gift cards:

• Encourage last-minute purchases - Point-of-purchase displays are great vehicles. These cards are often impulse purchases, so display them at the cash register.
• Add value - Make the gift card complete by packaging each one in a little box with wrapping and ribbon. Promote during holidays.
• Keep drumming - Make sure customers are continually aware of your program. Post signs and imprint receipts with invitations to buy cards.
• Tie-in promotions - Once your cards are in your customers' wallets, think of new ways to attract them. You might give a percentage discount to shoppers who present their cards during certain periods. Think of reason after reason to give cardholders an incentive to visit your store.

Consider offering bonus cards and award gift cards to customers who make especially large purchases.

Traditional paper gift certificates usually sport expiration dates. The same holds for gift cards. Many cards have declining cash values based upon time retained by the customer. You have the opportunity to achieve higher profitability by capturing funds not redeemed after a certain date. Indeed, some percent of the funds loaded on gift cards are never spent. On the downside, customers may get angry when they find their cards have become worthless.

Whether to expire the card is a controversial question. Keep informed about pending regulations on gift cards and consider open-ended policies that sacrifice short-term profitability for long-term customer satisfaction.