Help Customers Personalize Gift Cards

The National Retail Federation says holiday gift card sales will once again drop from the prior year level, although not as sharply as happened between 2007 and 2008. That's disappointing, since gift cards can be good moneymakers for retailers. The shopper with a gift card is more likely to browse your aisles than is the shopper without a gift card. At the least, they become better acquainted with the scope of your merchandise selection. At best, they'll see a great many items they want, so they'll spend some of their own money in addition to the gift card allotment.
     Gift cards are the single most requested item for the holidays. More than 55% of adults say that's what they'd like. Because of the appeal of gift cards, the way to increase your sales is to find out what's getting in the way. In the NRF survey, about 22% of respondents said their main reason for not buying gift cards is because the cards are too impersonal. Let's find ways, then, to help customers personalize.

• Individualize your gift cards and holders, with a selection of themes—such as sports and travel—a range of colors, and enough space to write a message to the recipient.
• Involve all sales staff, not just cashiers. When a customer hesitates in selecting a gift, say, "We have gift cards available. As you look around our store, what do you think the recipient might like? You could make some suggestions in the message you write to them."

     The lessons you'll learn this holiday season in growing sales of gift cards will serve you year round. The most common occasion for gift cards is not the holidays. That's in second place. First place is birthdays and those come on every page of your retailing calendar.