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‘Tis the Season for Salon & Spa Gift Cards
December 10, 2018 | By Neil Ducoff | 1 Comment
The countdown is on for the biggest gift card opportunity of the year.
In fact, when salons and spas turn their selling systems on and fuel them with “sense of urgency,” gift card revenues can be absolutely amazing.
How amazing? It’s totally possible to generate as little as 10% to as much as 100% and more of total monthly revenues.
The difference between putting a drop in the gift card bucket and having it overflowing cash all comes down to systems, leadership and focus.
Here are six of the most important No-Compromise Leadership insights all owners need to understand and remember to make this the best gift card season ever:
- What gift cards really are: The gift card game is all about pre-selling services — not filling buckets of cash. The only thing missing in a gift card transaction is the pre-booked appointment and the name of the client. KEY: If your motivation and focus on gift card sales is on “cash” rather than the pre-selling of services, you need to rethink your gift card strategy.
- What gift cards are not: Cash from gift card sales IS NOT spendable cash you can use to clear up debt or to catch up on expenses. Simply put, if your motivation to drive gift card sales is to bail yourself out of debt, you need a viable cash-management strategy to fix and prevent the issues that created the cash crisis. Spending gift card cash today simply kicks the cash-flow crisis down the road to when gift card redemption occurs. KEY: At the point of redemption, all of the payroll, product, operating expenses and more kick in. If the gift card cash is gone — your cash crisis instantly returns with a vengeance.
- Gift card information flow: Selling gift cards is 100% a selling game. Games need goals. Games need a scoreboard. If you don’t have a separate gift card scoreboard — make one. It can be a simple “bucket” that you and your team color in EVERY day at morning huddle. KEY: Your front desk and guest services team are your gift card sales team. As you count down the days to the holidays, do quick morning and mid-day huddles to brief them on where you are and what needs more focus. Coach your team to win the gift card game.
- Games need “plays”: In a salon/spa, a play is a script. Scripts are short opening and closing statements that your front desk and guest services team can use to present gift card solutions to clients at check-in and most definitely, at checkout. KEY: Keep scripts simple for check-in and checkout. Role play to build confidence and consistency.
- Gift card station/desk: If you have the space, consider setting up a gift card station, or desk, devoted 100% to selling gift cards. Decorate it with gift-wrapped boxes, gift bags and holiday ornaments. Make it obvious that you’re serious about selling gift cards. Have your best gift card sales closers there to great, present clients with your gift card solutions and to close the sale. KEY: Every service provider should have a simple script to remind clients to visit your gift card station/desk to purchase GC’s for loved ones and friends. Also, keep in mind that business owners and professionals love the simplicity and ease of buying gift cards for employees.
- Cash management: The worst way to manage gift card sales is to deposit the cash into your business checking account. It’s going to get spent. The best strategy is to deposit or transfer daily gift card sales into a separate savings account where it will stay safe until needed when redemptions occur. KEY: Transfer gift card cash reserves back into your business checking account as needed when gift cards are redeemed. The absolute best gift card game is to diligently manage cash flow and see how much gift card cash you can leave in savings.
Here’s my challenge to you: If you’re not playing the gift card game hard and fast, why not? As long as you stay focused on the pre-selling of services, gift cards are nothing short of an amazing business opportunity.
There’s still time to organize or reorganize your gift card selling strategy. Go for it. Make it fun. Keep score. Deposit gift card cash into a separate savings account. Have a big win.
Categories: Financial Literacy