Gift cards are among the top gifts given during the holiday season. Here at Cervion, we understand that it’s been a pretty tough year for the restaurant industry, fighting to survive the pandemic. As late fall and winter approaches, it is also holiday season, which is the most popular season for gift card purchases by your customers. With a gift card program that is integrated with your iPad point of sale system in place, it is another opportunity to increase sales and revenue.
According to the National Restaurant Association:
- 72% of people want a gift card for a restaurant during the holiday season.
- 56% of consumers would want a gift card from their favorite restaurant and 22% would want a gift card to try a new restaurant.1
Although this survey was conducted in December of 2019, the results are still helpful in understanding consumer behavior.
Benefits of implementing a gift card program
Increase Sales and Revenue
With the implementation of a gift card program, restaurants have another form of cash flow they can depend on, especially during the holiday season. When a gift card is purchased, there is an immediate sale, with a promise of a dining experience down the line. According to a 2018 survey, 59% of consumers spend more than the value of the gift card2, increasing sales for the restaurant once again.
Generate Brand Awareness
When a restaurant customer gives a gift card, it is the best word-of-mouth marketing there is. They are endorsing your restaurant to others, letting the receiver know you are making a recommendation and encouraging a visit. Furthermore, gift cards are like a traveling billboard – by easily fitting into a wallet, every time someone opens their wallet, they see the branded gift card, causing you to be top of mind at every glance.
Repeat Business and Increased Foot Traffic
The more gift cards purchased at your restaurant, the more upcoming foot traffic you can expect. When guests have a dining experience that exceed expectations, gift card or not, a restaurant has gained a new loyal customer and more repeat business.
Reward Regular Customers; Keep Them Coming Back
There are plenty of ways to reward regular customers to keep them coming back. By incorporating gift cards into your customer loyalty program – your regular customers can earn gift cards for future use or send them a gift card for their birthday or anniversary, which will keep them coming back.
Once you’ve decided to implement a gift card program, don’t forget to promote it. Set up displays for on-site purchasing or keep the transactions contactless by offering e-gifts card for purchase online. Let customers know they are available by sending out email campaigns or posting on social media and offer promotions that go with a gift card purchase, for example: Offer a $20 gift card with a gift card purchase of $100.
Although gift cards are a popular item throughout the entire year, the winter holiday season is the most popular time of year for purchasing. Gift card programs are relatively quick to set up, but don’t wait too long, as lead times can get longer as we approach the holidays.
For more information on implementing a gift card program, let’s talk - firstname.lastname@example.org or 1.877.426.7246. If you're a Cervion customer, check your email for our 2020 order form link.
Cervion Systems is a Point of Sale provider with offices in New York, Pennsylvania, and South Florida. Founded in 1996, with over 20 years of professional POS service experience, Cervion is the leading VAR (value added reseller) offering restaurant Point of Sale. Cervion provides restaurants and bars with local sales and service, modern Apple iPad point of sale systems and affordable programs for new and existing restaurants. Please contact Cervion Systems at 877-476-7246 or email@example.com.