design:retail - August 2018 - 26

style made simple

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Get Gifting

ERIC SAMUEL GREEN
VICE PRESIDENT,
EXECUTIVE CREATIVE DIRECTOR

Charming Charlie
ericsamuelgreen.com

ONSUMERS SPENT $130 BILLION on
gift cards last year with an average of
$40 per card, according to data from
the National Retail Federation. There
are three main reasons why gift cards
are important to increasing your bottom-line
revenue. First, there's no inventory risk, so you
don't have to worry about overstock and creating
a strategy to sell through your remaining inventory. Second, customers who use gift cards typically
spend, on average, $23 beyond the original value
of the gift card. Third, gift card recipients leave
roughly $1 billion on the table each year by not
redeeming the full or partial value of the gift card.
Sending an email or placing a few signs around
your store to communicate your amazing gift
card program won't get you the financial return
that you've imagined. Want to capitalize on the
$130 billion annual gift card industry? Here are my
top three tips to maximizing gift card sales.

1. OFFER A DEAL
EVERYONE loves a good deal. As retailers, we
often run promotions on loss leaders or items that
have a high-margin return. Maybe you should
offer a promotion on gift cards, too? For example,
I'm a huge movie fan and frequent the movies
about three times per month. AMC offers a great
AUGUST 2018

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discount gift card pack at Costco where you receive a $25 gift card for just $18 at retail. Another
gift card promotional tool is to offer a free gift.
Spas regularly offer a free pair of slippers or hand
cream when you buy a gift card. People are always
more prone to purchase a gift card if there is a perceived value.

2. GET SPECIFIC
Historically, gift cards were believed to be a
thoughtless gift, but that perspective quickly
changed when the gift card industry created
thematic gift cards. Consumers love giving and receiving gift cards for a special occasion. Not only
are they the most requested gift item by consumers, but gift cards as a category ranked No. 3 in the
list of items that consumers give out during the
holidays. Starbucks is one retailer that understands
the importance of thematic gift cards. The company consistently develops gift card designs that are
relevant to important moments in their customers'
lives, like Back-to-School, Mother's Day and even
Teacher Appreciation Week.
Depending on your store, you should focus on
some occasions more than others. For example, if
you're selling fitness merchandise, then you could
create gift cards featuring different sport activities,
such as running and tennis. You could also create a

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fun resolution-focused gift card design for the New
Year's time period.

3. THINK BIGGER THAN YOUR CURRENT
CUSTOMER
Most retailers focus gift card promotions on
existing and core customers. However, don't just
think about your target customers-also consider
the people who would be buying gifts for them. For
example, a women's boutique should look at targeting husbands and sons during Mother's Day as
they are the target gift-giving customer.
One of the biggest mistakes retailers make when
it comes to selling gift cards is to underestimate
their revenue potential. Remember, many gift card
purchases don't organically take place when the
customer is browsing a store. To really make the
most out of these cards, be more creative with your
promotional and acquisitional strategy.
ERIC SAMUEL GREEN HAS WORKED WITH TOP BRANDS SUCH AS
C. WONDER, BURBERRY, GAP, COLE HAAN, NEIMAN MARCUS,
LIMITED BRANDS AND THE NORTH FACE. HE CURRENTLY IS THE
EXECUTIVE CREATIVE DIRECTOR FOR CHARMING CHARLIE. HIS
LIFE MISSION IS TO CHANGE THE INTIMIDATION AND STRESS
ASSOCIATED WITH DESIGN, WHICH HE IS DOING THROUGH HIS
NEW BOOK, "STYLE MADE SIMPLE: THE 10 STEPS TO DECORATING
WITH STYLE."

Photo by JOINGATE/SHUTTERSTOCK

http://www.ericsamuelgreen.com http://www.DESIGNRETAILONLINE.COM http://www.GLOBALSHOP.ORG

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