Ensure Your Third-Party Gift Cards are Properly Merchandised and in Stock
The third-party gift card segment has consistently been one of the fastest growing gift card distribution channels for the last seven years. Third-party can easily be your largest sales channel outside of your own stores. Actively engaging in third-party sales can increase your brand footprint, reaching consumers that may have not known about your brand otherwise. Having ongoing, frequent dialogue with your third-party aggregator is key to understanding what exactly their retail partners are doing to drive your gift card sales. The aggregators provide you with access to your sales, but do you know why your sales may be trending up or down? Ensuring that your third-party gift cards are properly merchandised and in stock is one of the most critical components to why your sales may be trending positively or negatively. If your gift card is not available when a customer wants to buy it, you have a lost a sale and a visit to your establishment. Here is a list of additional questions to consider when analyzing your third-party program:
Plus Size Fashion Extends To Activewear
We have discussed in this space before the growing demand for plus size fashion and how retailers like Lane Bryant and Catherines are meeting consumer expectations by extending their lines to suit different tastes and the more fashion forward. This trend is now extending into the popular activewear arena. While there are all kinds of activewear and exercise specific lines from mainstream retailers, Lane Bryant has recently rolled out Livi its plus size activewear. Livi offers trendy activewear items with popular patterns, cuts and variety specifically for the plus size market.
Employee Investment is an Investment in Your Brand
Employees are your brand. They are the ultimate liaison between you and your customers. No customers, no business, so it's critical to make an employee investment and consider it an investment in your brand. In order to ensure your employees are the strongest representation of your brand you must create a culture of employee engagement. Here are three ways to do that.
[Infographic] Are Competitors Cannibalizing Gift Card Sales?
When it comes to gift card sales, the third party business plays a big part in the gift card industry. It offers huge buying potential for retailers and merchants when it comes to brand exposure. You’re able to get your gift cards in front of people who may not go into their stores and also makes the choice for a last minute gift even easier. Another important concept, just because your brand isn’t in the third party market doesn’t mean your competitors aren’t. The benefits of third-party gift card programs include increasing brand exposure, revenue, and customers. Selling your gift cards in a gift card mall can increase your distribution network by thousands of locations. If your gift cards are not currently in a third-party program you are losing valuable sales and customers that may be buying from your competitors who are already active in third-party programs.
Gift Cards as an Incremental Sales Driver
Many retailers think of gift cards as a necessary item that gives consumers flexibility in purchasing and gifting. However, FirstData's
2014 Prepaid Consumer Insights Survey reveals that gift cards can actual hold the power to drive incremental sales for retailers, and the better news is that gift card sales are on the rise, with an 8% boost in sales between 2013 and 2014.
Incremental Sales Driver Gift cards drive incremental sales when consumers purchase past the value of the gift card. According to the FirstData study, in 2014 consumer spent an average of $23.41 over the amount of their gift card, up about $3 from 2013. As this consistent consumer behavior takes root, retailers can use gift card purchasing numbers to forecast this unique source of incremental revenue. The additional spending also represents the opportunity to gain new consumers and build a relationship with shoppers who wouldn't have otherwise entered the store. Using gift cards as a customer acquisition tool can help increase incremental revenue numbers that stem from gift cards and gifting.
Gift Card Popularity on the Rise Gift cards have long been a popular gift choice for those picky recipients and continue to offer consumers a safe gifting option that is easier on both the sender and receiver.
81% of consumers plan to spend the same or more in plastic gift cards, with
84% of consumers planning to purchase the same or more in e-gift cards. These strong numbers indicate a real opportunity for retailers to take advantage of the incremental revenue from extended spending on top of the value of gift cards. The flexibility of gift cards provides a desired convenience for consumers as well as a revenue opportunity for retailers. We want to know what gift cards do for your business? Leave us a comment.
