The holidays are the most exciting time of the year for retailers. Revenues go through the roof. For some retailers, these months are the only months that make their business profitable. However, the more successful seasons can easily hide crucial mistakes. After all, why try to improve something that is already great? The reason is that a 5% increase during the holidays results in a much larger revenue improvement than 5% during the slow season. This is precisely why it is most important to discover the full potential and explore new possibilities.
How do you feel about gift cards? Many think this is pretty straight forward and not all that important. However, studies show gift cards can be a real money maker, especially during the holiday season. Do you need more convincing? Let me throw a few facts at you and if that still does not change your opinion check out the video below.
- More than 10% of all gift cards never get redeemed. It is free money!
- The more you promote gift cards, the higher the rate of unredeemed gift cards.
- Even nice gift cards can be pretty affordable.
I assume by now you should be pretty on board with gift cards for the holidays. However, there are a couple common pitfalls.
- Don’t get locked in.
A common trick, especially amongst credit cards processors, is to offer free gift card processing. The issue: they don’t allow you to export current gift card values. This ultimately forces you to stick with the processor for as long as you have unredeemed gift cards.
- Don’t issue hand written gift receipts.
Technology is everywhere and there are still plenty of businesses that issue hand written gift receipts. It looks bad and it feels bad. The customer has to spend precious time watching the cashier fill out a piece of paper and in the end, there is no way of verifying its validity anyway.
KORONA point of sale has an integrated gift card system. This allows you to use any type of gift card without being tied to the credit card processor. In addition, you can import or export the entire gift cards database in seconds. And the best part: you can be up and running within minutes. Simply use the gift card assistant which can be found in the getting started widget on your dashboard.