5 Benefits Offering Gift Cards At Your Tanning Salon
If you are looking to increase sales, build brand awareness and increase your cash flow at your tanning salon, then you should consider offering gift cards.
Almost everyone seems to love gift cards, especially consumers. Gift cards offer seamless convenience for purchases and provide great promotional products.
Tanning salons have even more reasons to love gift cards using them to raise awareness and grow sales. By simply adding gift cards to your marketing mix engages customers and keeps them coming back.
Gift Card Growth
According to the publisher’s Q4 2020 Global Gift Card Survey, gift card industry in United States is expected to grow by 9.7% on annual basis to reach US$ 170784.8 million in 2021. Despite near-term challenges in 2021, medium to long term growth story of gift cards in United States remains strong.
The gift card industry in United States is expected to grow steadily in H1 2021 and record a strong growth in H2 2021. The growth momentum is expected to continue to grow over the forecast period, recording a CAGR of 8.8% during 2021-2025. The gift card market in the country will increase from US$ 155616.0 million in 2020 to reach US$ 238973.8 million by 2025.
Check out these five ways gift cards can benefit your tanning salon:
#1 – Gift Cards Build Brand Awareness
Gift cards represent an easy, cost-effective advertising method that helps keep your business top-of-mind with customers. Selling gift cards helps promote your brand as the plastic card will have your logo and messaging on it, not to mention most people who end up with a gift card end up gifting to someone else.
#2 – Gift Cards Capture More Sales
Gift cards can help create more sales for your tanning salon by increasing holiday sales, general sales and offering gift cards as promotions for services. Most customers will end up spending additional money than what is on the actual gift card as well. According to Giftcards.com, 72 percent of customers will spend on average 20 percent more than is allotted on the gift card. This leads to increased profits as well as satisfied customers.
#3 – Gift Cards Enable Customer Engagement
Simple gift card programs help open doors offering better customer engagement and additional marketing opportunities with current customers and prospective ones. Hand out gift cards for referrals, promotions, new sign-ups, etc. Gift recipients engage feeling uplifted.
#4 – Gift Cards Offer Easy Use
Gift cards are a cost-effective use of in-store space and can also be used as upsell products. Load the balance on the gift card with your pos and let the customer be on their way.
#5 – Gift Cards Improve Cash Flow
A gift card program in your tanning salon can improve cash flow. When a consumer buys a gift card from your store, you are automatically making a sale regardless of the customer ever coming back in. Most customers only spend a partial amount of the card’s total and forget to use the rest of the available balance. The leftover gift card balance is called “breakage,” and it can essentially mean pure profit for your store. However, state laws vary on dealing with this money, so consult a lawyer or accountant for the details.
How can Tan-Link Tanning Salon Software help your Tanning Salon with Gift Cards?
Tan-Link offerings an integrated POS with the ability to sell gift cards in your software account.
Free Gift Card Program
Most gift card programs usually charge a monthly fee for the usage of gift cards, such as $10 to $25 a month, plus a charge per transaction. With Tan-Link there are no additional charges, and you would need to purchase the custom gift cards.
If you do not sell gift cards at your tanning salon right now, hopefully, you see the benefits of adding your products to market.
Schedule a demo of Tan-Link to see how we can help your tanning salon!