It's that time again - you're starting off a new year and
thinking about your business goals for the year. One of those
goals will most likely include an intention to bump up your
business a little and bring in some more revenue. One
promotional idea worth exploring is a gift certificate program.
Retailers almost always have a gift certificate system in place,
but a lot of service businesses don't.
Why not? The answer I hear most often is "I haven't got around
to it yet!" So I'm going to share a couple tips to get you
started.
What kind of gift certificates do you want? There are 2
basic types. It's really nice to have both:
The paid-for kind of gift certificate is purchased by one of
your customers for another person. Not only is it a way to serve
new customers, it's a way to serve your current ones. People
love sharing experiences, and when you create a really positive
one for the recipient, the gift giver will feel great about it!
Another type is the free gift certificate. That might be a gift
from you to a current customer, a promotion to attract new ones,
or a thank you gift for the people that help you throughout the
year.
Tracking your gift certificates The simplest way is to
create a paper log-book or Excel spreadsheet. Besides recording
the purchase date, amount, recipient's name, and redemption
date, also include the purchaser's name & contact information in
case you are must issue a refund as per some state laws.
Showing the dollar value If you're in a service business,
most people buying gift certificates are paying for a particular
service they want their friend to have. In this case, it's
really nice to write that on the certificate itself, for
example, "Good for a 60-minute Reiki session." But what if you
raise your prices later or the recipient wants something
different? It's smart to put the dollar value on the
certificate, in a very small discreet way.
On free certificates, you might want to show the dollar value so
people understand its worth, but write "no cash value" very
small so that there's no confusion about it being refundable for
money.
To present or not to present? Businesses often stipulate
that the certificate "must be presented at time of service."
That policy does help prevent fraud, but you can't enforce it
without getting the customer really upset. This is where your
tracking system is truly necessary. Don't be surprised when 98%
of gift certificate holders come in without the paperwork. Trust
me on this one. It's better to be elegantly prepared.
Expiration dates In most states, it is illegal to put an
expiration date on gift certificates that were sold for money.
If you feel anxious having unused certificates floating around
without expiry, you may put a "must be redeemed by" date on
them, but here's the rule: when the expiry date passes, you must
refund the purchaser in full. Only after you're refunded the
purchaser in full can you void the certificate.
The no-expiration rule does NOT apply to free certificates.
Since no money has changed hands, the expiration date is up to
you.
Refunds You can pretty much create whatever policy you
want, as long as you have one. You can offer cash refunds,
"store credit only" refunds, or a combination. For example, if
you sold an hour massage certificate for $100, but the redeemer
only wants a $65 pedicure, your policy will determine whether
they get cash back, credit towards future services, or if they
can use the difference to buy products or put it towards the
tip.
Do keep in mind that if you should happen to go out of business,
you are required by law to issue cash refunds to the purchasers
of all unused gift certificates. That's why you need to keep
records.
You will need to check with your particular state for any area
specific laws that may govern your area. A good place to begin
this search is with your state's Department of Consumer Affairs.
How to design your gift certificates There are 3 basic
ways you can create your certificates. I'll start with the least
expensive ones first.
Do-it-yourself gift certificates from your computer The
most affordable way is to use a program like Microsoft Word or
Publisher. If you aren't sure how to start from scratch, there
are free templates you can download and customize at the
Microsoft Template Gallery.
Alternatively, most office supply stores have pre-printed gift
certificate stationery for sale. You can format them with your
computer, or even hand write them if you've got nice writing.
Pre-printed gift certificates Just like ordering
pre-printed checks, you can order pre-printed gift certificates.
These cost a little more, but they can look really nice with
your logo or embossing done on nice paper. This company even
sells tracking forms you need, if you're not sure how to do it
yourself:
www.giftcentral.comCredit-card style gift certificates If you've got a
bigger business with a POS checkout system, these are pretty
cool. It used to be that only huge retail stores had this type
of certificate, but now anyone can sell them. Because they look
like a credit card, people understand that they must present the
card to use it, and it makes "store credit only" refunds really
easy to manage. If your bank doesn't offer them, here's another
source:
www.customgiftcard.com Make it special Whatever kind of certificate you use,
make it look as attractive as you can. It should fit the style
of your business, and its perceived value should match the gift.
So if you've got a $200 gift certificate for example, it should
be on nice paper, in a nice envelope, or maybe even a gift box.
Have fun creating your gift certificates!
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