Make Restaurant Gift Cards Work for You (1/2)

Does your restaurant offer Gift Cards to your valued customers? If you don’t, you are missing out on per-haps the best way to ensure customer loyalty and enthusiasm, as well as keeping the customer pipeline continuously flowing to your doorsteps. The Gift Card (also known as a Store-Value Card) is a credit-card-sized sales device that is perhaps the almost perfect currency and the almost perfect gift. Like a credit or debit card, Gift Cards can be used for restaurant meals and related purchases. Like prepaid phone cards they aren't tied to a person's bank account, and they're preloaded with a specific amount of money. Some can be re-loaded when the initial amount runs out. Consumers like them because they're easy to use. Restaurants like them because they help bring in new customers. And, more and more businesses are using stored-value cards such as restaurant Gift Cards as an employee incentive program or client gift. Studies show that Gift Cards are increasing in intrinsic value and worth across all industries and across all consumer demographics. Your competitors are offering Gift Cards as a way to award loyalty and increase patronage – shouldn’t you keep your customers loyal with restaurant Gift Cards, too? Gift Cards are Different Than Coupons Coupons are always discounts, which can cut into your bottom line. Coupons are redeemed once, and you must reprint or spend money for new newspaper insertions. Coupons are usually constructed of paper and easily torn and mangled. Although useful, people do not usually feel coupons are a high value redemption item, and do not give the holder a vaulted feeling of self worth. Gift Cards are Held in High Esteem by The Customer Restaurant Gift Cards are “gift worthy” – people of all ages like to give them and receive them. Gift Cards are perceived as a more thoughtful gift than money. They are proudly used as a status symbol or “club.” They satisfy a customer’s need for convenience. Gift Cards can be purchased in low -to - high dollar increments. Gift Cards are simple and inexpensive gifts to mail or store in luggage if you are traveling. Gift cards are usually kept in a safe place such as a wallet because they are perceived as a valuable item. Gift Cards can be replenished. And, there happens to be a big secondary market for Gift Card collectables. Gift Cards are Winners for Restaurants Pre-paid Gift Cards give your restaurant a better cash flow because they are prepaid, letting you use the float. Customers feel driven to consume more than usual with a Gift Card, because the short-term cost will seem lower, and they end up spending more. People like to buy many Gift Cards at one time, as well as for many purposes through-out the year. They can be used to stimulate restaurant traffic especially during low – traffic times and months. They can be easily sold and managed at the place of purchase or online. Restaurants can track customer preferences and other purchasing habits and demographics with Gift Cards. Gift Cards can award customer loyalty and frequent patronage. Make Gift Cards a Profitable Sales Tool * Customers use Gift Cards like credit cards, so they will often times use more than the value allotment when dining. So, monitor your Gift Card increments to spur additional spending. * Look for city, shopping center, Chamber of Commerce, or other professional affiliations that are offering Gift Card merchant memberships. *Use the Card to generate referrals for your restaurant (buy one for a friend and get a third Card free, free gift, flowers, etc.). Use Gift Cards for holiday promotion ideas (special new year’s Gift Cards, etc.). Try a “more you buy the more you get” promotion – as an example, for every $100 you spend at your restaurant, the customer receives a Gift Card worth $20. * Promote your take-out business with Gift Cards.