Gearing Up for Gift Card Sales in December
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Daniela Warner
Are you an APA member yet? December is the last month to be a founding member of the ADDO professional association. With APA, you get free access to all of our 12 monthly masterclasses and recordings, invites to Smallpod mastermind groups that meet monthly, discounts on all offerings and live events from adoesthetics, a digital monthly magazine, and so much more. All of that for the very low price of $300 per year. And as a founding member, we guarantee that the price will never go up as long as you remain a continuous member. Go to attoesthetics.com and click on the ATTO Professional association tab to learn more and join today.
Podcast Host
Welcome to Spa Marketing Made Easy, a podcast for spa owners who want to step up their leadership and business skills and step into the role as spa CEO. I I'm your host, Daniela Warner, CEO of ATTO Aesthetics and founder of the Growth Factor Framework program, where we teach, coach and guide spa owners in scaling their spas to the next level of growth and unlocking freedom in their life and their business. I'm so glad you're here. Now let's dive into the show.
Daniela Warner
Hello my dears. Daniela here, and welcome to the Spa Marketing Made Easy podcast. We are going to get into it today with gift cards. And this is the time of the year when gift cards do incredibly well in spa and they can be that cash infusion that your business truly needs to start the year off with ease. That's my word of the year, by the way. So if you are one of those people that picks a word each year, mine for 2025 is all about ease, ease and profit. And I just decided I'm adopting them now. It's November. It's still 2024. Doesn't matter. I'm adopting ease and profit now. I'm happy to share those words with you too, if they feel aligned for you. I mean, I don't know about you, but when I think about 2024, ease is not the first word that comes to mind. But for me, it is something that I'm actively working towards in my life, taking baby steps to get there little by little. So for me, running my business with ease means honoring the boundaries I have for myself. And so often we know what those boundaries are. We know what we need to allow us to operate at our highest level. But we are the first ones to break those boundaries. Why do we do that? Why do we do that? So whatever role you're playing right now in the aesthetic space, whether that is CEO, provider manager, my guess is that you're overdoing it. You're burning the candle at both ends. You're tired, but you have drive, you have passion, you have ambition, you have big goals that you have set for yourself and your career. And so you think if I just work a little bit harder, if I just squeeze in one more patient, if I just respond to one more dm, I'll finally be able to, you know, insert whatever thing. But here's the secret, my friends. You are never going to be able to finally do whatever that thing is that you were working towards. Until you honor your boundaries for yourself, that bar is going to just keep being just barely out of reach. But when you finally care for and honor yourself and your needs, it is incredible what is possible. If you're doing this much now, when you're tired and you're overwhelmed, imagine what is possible for a rested, grounded, secure version of you. Everything. Everything is possible for you. So how do you get there? When you don't see a way forward, a way out of this chaotic season of life that, sorry, but you have created for yourself. And I'm right there in that boat with you, friends, One step at a time. One aligned action at a time and at a very tangible place. A. I guess it's more of like a. How do we see this tactically and what we're doing? It's in our marketing.
Guest Speaker
Okay?
Daniela Warner
So when we are reacting, we're throwing marketing strategies and promos together last minute, right? It's oh, Black Friday is coming up. I'm gonna. It's three days before and I'm gonna just whip something up because I saw somebody else doing something cool, okay? When you're operating with ease as the best version of yourself, you have the self awareness and the self control to honor the plans that you made for yourself and your business. Because you spent a lot of time and energy creating those plans from an intentional space. But right now, maybe you find yourself somewhere in between. You're not yet in the place where you're putting together your annual marketing plan, a plan that you actually honor. But you also are not in that space where you're just wanting to whip something up the week before. Well, it's November, right? It's the beginning of November. Black Friday, all that stuff will be here in a blank. So what I want you to do right now is get your gift card strategy for December mapped out, finalize it right now, do that from an intentional space space so that you can start taking one little baby step towards ease in December. December is the busiest Month for gift card sales in spa. All right, so let's take that step towards ease together. All right, so when it comes to gift cards, there's a few things that we need to align on first.
Guest Speaker
Okay.
Daniela Warner
So there are federal and state laws around what you can and cannot do with gift cards. A lot of this has to. It's around expiration dates. So I want to make sure that you understand the laws of your state and also the federal laws before you go, you know, create some kind of gift card promo where you're like making it expire after one year or something like that. Most states, I believe it's a federal law, you have to look this up. Right. I'm not an attorney, but most states won't like if gift cards expire for minimum of five years.
Guest Speaker
Okay.
Daniela Warner
And certain states, they can never expire. So look up federal gift card laws and then look up gift card laws in your particular state.
Guest Speaker
Okay.
Daniela Warner
Second thing, consider having a liability account for your gift card revenue. So this is really, it depends on how you manage cash flow. This may or may not be a beneficial thing for you. But I have worked with plenty of estheticians, plenty of nurses, plenty of practice owners who are not fans of gift cards because they're doing their daily reports. And when those gift cards actually come in and be redeemed, there's no cash coming in and they're like, oh my gosh, I feel like I'm working and I'm making no money. Well, my friend, you did actually collect the cash. You just didn't have to do the deliverable. So the way that many accounts will actually manage this is by having a separate bank account that all of the gift card money sits in. So if this is a kind of cash flow strategy that you are going to be doing, I would highly recommend a high interest savings account. So right now there's a lot of savings accounts where you can earn between 4.5 to 5% on cash sitting in a bank. So let's say, say that you have $100,000 in gift card liabilities. You have that reserved in an account that you're earning 5% on, you're going to earn $5,000 a year from that liability account. Okay, so what we're going to do with these accounts is we're actually going to transfer the cash from the liability account over into your operating account once the service has been performed. Does that make sense? So let's say you have that 100,000 in there of gift card liabilities and someone comes in and receives A Facial. It's a $150 facial. You're going to transfer that $150 over into your operating account. Now, I would not recommend transferring, you know, service by service. I would calculate this up and do it on either a weekly or a monthly basis, transferring that cash into your operating account. But you move that over so that as the deliverable is performed, then the cash is going into the account.
Guest Speaker
Okay.
Daniela Warner
All right. And bonus tip. Make sure that you are doing your absolute best to have an idea of who the gift card is intended for. That way, that gift card doesn't just sit out there. If it's sitting out there and not being redeemed and it's been a year or it's been two years, you don't want it to be two years. But if it's been a long time, you want to reach out to them, you want to invite them in, you.
Community Member
Want to let them know, hey, can.
Daniela Warner
I get your service booked for you? You've got a gift card that we've got on file, and trust me, you as the practice owner or the provider, you want to get those cards redeemed, because that's an opportunity for you to upsell, to cross sell, to sell retail, and most importantly, to build a deep relationship with your patient or client.
Guest Speaker
Okay?
Daniela Warner
So all super important things, but let's take a minute now and dive into the different types of promos that you can offer with gift cards. So the two most common that we're going to see are either discount or. Or value add. So if we are discounting a gift card, then we are going to say buy $100 gift card, and then you're going to pay $80 for that gift card, but it's actually going to be valued at 100. Value add is buy $100 gift card, and the value on that gift card is 120.
Guest Speaker
Okay?
Daniela Warner
So test them. See which one works better for your patients or clients. All right. But discounting tends to be what I see. The most successful people get really excited with the $100 gift card for $80. So. But again, test it out. See what works for you in your practice. Now, I want to talk about spa bucks or spa vouchers. If you're someone that you're trying the buy 100, give 100, which is buy $100 gift card, we are going to give you five $20 vouchers. It's because of that gift card language that we were referring to in the beginning. It. It's really important to make sure that you're using that, you are calling this additional hundred dollars that you're getting as vouchers or as spa bucks so you don't have to abide by the same gift card rules. All right, so that hundred dollar gift card that the individual purchases is a gift card and does have to follow the gift card rules. But those five vouchers, and these are different $20 vouchers, you want to make sure that on the back of that voucher it says good towards services only, no cash value limit one per transaction. It can have an expiration date, cannot combine with other promotions. So you want to make sure that you have all of those pieces on there.
Guest Speaker
Okay.
Daniela Warner
All right, let's see. I want to touch on corporate gifting. And this is something that again, works really well for some practices and totally flops for others. It's. You're going to get a lot of no's with corporate gifting. But if you get a yes, it can be a windfall. It can be absolutely incredible. So what corporate gifting is is you going to a large corporation and negotiating a deal where they purchase gift cards to your spa for their employees as a holiday gift. Now, the way that this typically works is based on volume, you're providing some level of discount. So let's say that if they buy one to 10 gift cards, maybe you give them a 10% discount. Maybe if they buy one, two, you know, you're going to kind of tier it. And depending on the number of gift cards or the dollar amount spent, you can decide, you know, what you want that to look like you're going to get it down, I would say max to 25%.
Guest Speaker
Okay.
Daniela Warner
Now for insurance companies, for, you know, depending on, on the types of companies that you're going to that has budget to purchase, you want to put together some sort of one pager for them that outlines, you know, what the offering is. You want to make sure that you're building the relationship with the right person. You definitely want to have these packaged guys. So, you know those little jewelry boxes that are kind of the gift card boxes, they're thin, flat, maybe three by three, they have a little bow around them. You want to have something that allows the giver to actually have something tangible that they can give to the recipient. All right, so that's a really important piece. Whether you're doing the vouchers, if you're doing the buy 100, give 100, and you want to make sure that, hey, you're going to buy one gift card, but each of these five Vouchers, we're going to package them up like a gift and present it. You know, here is a gift that you can give to others.
Guest Speaker
Okay.
Daniela Warner
All right, let's talk about marketing. How are we going to market these things? Well, the main three are going to be social media, email, and word of mouth.
Guest Speaker
Okay.
Daniela Warner
So your social media, you want to make sure that you are talking about gift cards multiple times in the week. And it's really great if you can have a way that they can purchase online. There's a little piece of software called ManyChat that I'm a big fan of and you could create a reel about gift cards and just say comment GC below and I'll send you the link to purchase a gift card. Comment gc below and I'll send you whatever. It could be a discount code to get, you know, 20% off your $100 gift card. So when you do that on your social media and you set up that little mini funnel that's going to automatically message people that are kind of quote unquote, raising their hands, asking for information. We're not spamming people, we're only messaging the people that say, yeah, hey, that sounds cool to me. And you can send them the link to directly purchase your gift card online. Really cool option too. I don't know, you know, depending on the software that you're using, you can say, I want to print this out or I want to pick it up in store. Okay, so couple of options there. But imagine how you could really kind of expand your reach if you do a really great gift card reel. Give a lot of information. Maybe put $100, boost that post for $100 for people who like your page and their friends, you know, and, and keep it in a 10 mile radius or something along those lines. And then you have that automated so that if someone comments gc, they're automatically going to get the link. That is automation. That is the power of getting your information out all day, every day. Right. Emails don't just send one email, my friends. Especially this time of year. Spas businesses in general are probably sending 2, 3, 4, 5 times the amount of emails that they typically do. I mean, I know every year we talk about, oh, wow, when is, it's, you know, holiday is just coming earlier and earlier. I think the pumpkin spice latte came out in August this year. And that's kind of like the marker of like, okay, when is it fall? It was like the end of August. The pumpkin size latte was brought out at Starbucks. I know, right? Now I'm filming this in October. There's already Christmas stuff up at Walgreens. I was there the other day. There's Christmas stuff up. So it's, you know, it gets earlier and earlier, which shows obviously, you know, I kind of started this episode with it. Ease is not how I would describe this year. This has been a challenging year for a lot of people. And holiday Q4, this is when a lot of businesses make their money. And so businesses are competing harder. They're working harder to capture the attention and earn the business of their clients.
Guest Speaker
Okay.
Daniela Warner
People are much more aware of how they're spending their money, and that means that if we just send out one email, it could so easily get lost in the mix. We want to make sure that we're sending out emails. We want to make sure that we're talking to our clients about these things. We want to make sure that we're calling, that we're texting, that we have signage up in our practices. All of these things. Super important pieces of making sure that we are really doing our best to communicate these great offers with our clients. Okay, so if you're wanting some more inspiration, we did a podcast episode last year with Ashlyn. She's one of our growth factor students. She did over $71,000 of gift card sales in the month of December last year. And I remember her posting it was like one week. She did over 40,000 in just one week. And I was like, oh, my gosh, this is absolutely incredible. I've got to share her story, got to share what she's doing. So that is podcast episode number 363. So if you go to attoesthetics.com podcast ep363, you can find that episode there. Or just search on Apple Podcast or Spotify. It is the gift card episode with Ashlyn. Again, episode 363. Check that out. All right, my friends, stay focused, stay positive. Keep under promising and over delivering for your patients and clients. Honor your boundaries and allow yourself to operate at your highest potential. Give yourself that gift. You are incredible. Everything is possible for you. I can't wait to see what you do in December, and I will catch you guys on the next episode. As always, if you want to keep.
Community Member
The conversation going, I want you to head on over to the Spa Marketing Made Easy Facebook group, the number one.
Daniela Warner
Free resource out there for estheticians focused on business building.
Community Member
We've got weekly marketing tips, a monthly goal setting and planning session, monthly esthetician business book club, plus a community of thousands of estheticians committed to business building.
Daniela Warner
In the spa industry. I'll see you there.
Spa Marketing Made Easy Podcast
Episode: SMME #406 Gearing Up for Gift Card Sales in December
Host: Daniela Warner, Licensed Aesthetician
Release Date: November 4, 2024
In Episode #406 of the Spa Marketing Made Easy Podcast, host Daniela Warner delves into the critical strategies for boosting gift card sales in December—a peak period for spa businesses. She emphasizes the importance of approaching this busy season with a mindset centered around "ease and profit," aiming to help spa professionals navigate the hectic months with simplicity and effectiveness.
Notable Quote:
"My word of the year is all about ease and profit. Even though it’s November 2024, I’m adopting these concepts now to help align our strategies for the upcoming holiday season."
— Daniela Warner [01:22]
Daniela opens the discussion by highlighting how December is a pivotal month for gift card sales in the spa industry. Gift cards can serve as a significant cash infusion, providing the financial boost necessary to end the year strong and set the stage for a prosperous new year.
Key Points:
A central theme of the episode is the importance of setting and honoring personal and professional boundaries to operate with ease. Daniela discusses how overextending oneself can hinder long-term success and profitability.
Notable Quote:
"You are never going to be able to finally do whatever that thing is that you were working towards until you honor your boundaries for yourself."
— Daniela Warner [02:30]
Strategies:
Daniela underscores the necessity of understanding federal and state laws regarding gift cards, particularly concerning expiration dates. Compliance is crucial to avoid legal pitfalls and ensure customer trust.
Key Points:
Notable Quote:
"Most states won't allow gift cards to expire for a minimum of five years, and some states prohibit expiration dates entirely. Make sure you understand both federal and state laws before launching your promotions."
— Daniela Warner [06:20]
Managing the financial aspects of gift card sales is essential for maintaining healthy cash flow. Daniela suggests setting up a liability account to handle gift card revenue responsibly.
Key Points:
Notable Quote:
"By reserving gift card revenue in a high-interest savings account, you can earn money on funds that are not yet redeemed, enhancing your overall financial health."
— Daniela Warner [07:04]
Maximizing gift card redemption rates is crucial. Daniela advises knowing the intended recipient to ensure timely use and to capitalize on opportunities for upselling and building deeper client relationships.
Key Points:
Notable Quote:
"Reach out to those who haven’t redeemed their gift cards and invite them to come in. It’s an opportunity to upsell, cross-sell, and build a deeper relationship with your clients."
— Daniela Warner [09:22]
Daniela explores two primary strategies for promoting gift cards: discounting and value adding. Each approach has its merits and can be tested to determine what resonates best with your client base.
Promotion Types:
Recommendation:
Experiment with both strategies to identify which generates more sales and client interest.
Notable Quote:
"The most successful people get really excited about a $100 gift card for $80. But it’s important to test and see what works best for your practice."
— Daniela Warner [10:53]
Corporate gifting presents a unique avenue for substantial gift card sales. Daniela outlines how to approach businesses to secure bulk purchases for employee rewards or holiday gifts.
Key Points:
Notable Quote:
"Corporate gifting can be a windfall if you secure a deal. Packaging gift cards in attractive boxes makes them more appealing to corporate clients."
— Daniela Warner [14:05]
Effective marketing is essential to drive gift card sales. Daniela recommends leveraging social media, email campaigns, and word of mouth to maximize reach and engagement.
Strategies:
Social Media:
Notable Quote:
"Imagine how you could expand your reach with a great gift card reel and an automated response system to handle inquiries."
— Daniela Warner [15:31]
Email Marketing:
Word of Mouth:
Notable Quote:
"Emails don’t just send one email, especially this time of year. Make sure you're sending multiple touchpoints to keep your offers in front of your clients."
— Daniela Warner [16:10]
Daniela shares an inspiring success story from a previous guest, Ashlyn, who generated over $71,000 in gift card sales in December. Ashlyn's strategic approach demonstrates the potential impact of well-executed gift card promotions.
Details:
Notable Quote:
"Ashlyn did over $71,000 in gift card sales last December, achieving incredible results through strategic planning and consistent effort."
— Daniela Warner [17:50]
Daniela wraps up the episode by encouraging spa professionals to stay focused, remain positive, and continue honoring their boundaries. By implementing the discussed strategies, spa owners can maximize their gift card sales and operate their businesses with greater ease and profitability.
Final Thoughts:
Notable Quote:
"Stay focused, stay positive. Keep under promising and over delivering for your patients and clients. You are incredible, and everything is possible for you."
— Daniela Warner [19:45]
For ongoing support and resources, Daniela invites listeners to join the Spa Marketing Made Easy Facebook Group, a thriving community of estheticians dedicated to business growth. The group offers weekly marketing tips, monthly planning sessions, a business book club, and networking opportunities with thousands of peers.
By following Daniela Warner's expert advice on gift card sales and marketing, spa professionals can enhance their December revenue, build stronger client relationships, and set their businesses up for continued success in the new year.