Play your cards wisely

BY DREW MCLELLAN
Wondering what to give that recent grad or newly married couple? If you are like the majority of givers, it will be a gift card. These cards, the latest variation of the time-tested gift certificate marketing tool, have come of age. This past holiday season, Americans bought more than $35 million worth of them.

Here are some facts about gift cards and how they might affect your business and your bottom line.

If gift cards are displayed in a prominent place, on average 10 percent of customers will purchase one.

Most gift card buyers will spend $25 or more. They worry that spending less looks cheap.

Seventy-three percent of buyers will give the gift card to someone else. An instant word-of-mouth referral for you and your business.

On average, 15 percent are never redeemed. That's cash in your pocket. Pure profit.

When a gift card is redeemed, on average the user will spend 33 percent more than the card's value.

But as a smart marketer, be careful. Many states have laws specific to gift certificates and cards. For example, in California a gift card or certificate cannot expire. Make sure you know the rules or are working with an agency that does.

Why not jump-start your own gift card strategy by giving your current clients or customers a gift card and asking them to share it with someone else who might benefit from your services? It's a thank-you gift for your best customers and a viral word-of-mouth campaign aimed at new customers. All in one. Whether you sell doughnuts or tax preparation services, there's an inventive way to use the power of gift cards in your business.

Drew McLellan is Top Dog at McLellan Marketing Group and blogs at www.drewsmarketingminute.com. He can be reached at Drew@MclellanMarketing.com. © 2008 Drew McLellan

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