Many salons struggle to make gift card promotions profitable, despite their potential as revenue drivers. The problem isn’t the cards themselves, it’s the strategy behind them.
The numbers tell the story: consumers typically spend 31% more than a gift card’s value (Credence Research). To help you tap into this opportunity, we turned to an expert.
Watch episode 58 of Marketing 100 with John and Kayle as they sit down with Daniela Woerner, CEO of Addo Aesthetics, to uncover the secrets behind successful salon gift card promotions and learn how to avoid common pitfalls.
Continue reading below for our detailed breakdown of common gift card mistakes, practical financial management tips, and proven promotion ideas that have helped salons increase their revenue.
Free Resources to Boost Your Gift Card Sales:
- Download Email Templates Bundle → 5 ready-to-use promotion templates (PDF)
- Download Gift Card Marketing Checklist → Step-by-step implementation guide (PDF)
Are You Making These Gift Card Mistakes?
Many salons offer two popular promotions: discounts and value-adds. For instance:
- Discount promotion: Sell a $100 gift card for $80.
- Value-add promotion: Sell a $100 gift card with an extra $20 value.
Both approaches work well, but only if your marketing clearly targets the gift buyer.
With gift cards, you want to make sure you’re speaking directly to the person buying it. Usually, that’s a spouse or partner buying a thoughtful gift
Mistake #1: Assuming clients already know you offer gift cards.
Clients won’t magically think of your gift cards unless you tell them explicitly. Daniela specifically recommends using social media posts for salons, shelf talkers in treatment rooms, and visible signage around your salon to actively promote your gift cards.
Managing Gift Card Cash Flow
Another common concern salon owners share is cash flow disruption.
“Thinking, ‘oh, I had this amazing December, I sold $50,000 in gift cards,’ and then January comes and they’re like, ‘oh my god, I made no money.’ No. You actually did. You just got it in December,” Daniela explains.
The solution: Create a separate liability account for gift card sales. Put the gift card money into an interest-earning liability account, then transfer the funds weekly from that account to your operating account as the gift cards are redeemed. This method helps manage your cash flow effectively while providing a secondary financial buffer.hod helps manage your cash flow effectively while providing an additional financial buffer.
Real-World Promotion That Actually Works: “Buy 100, Give 100”
One of Daniela’s most successful promotions is the “Buy 100, Give 100” offer. Here’s how it works:
- Clients buy a $100 gift card for themselves.
- You give them five $20 vouchers packaged as attractive, tangible gifts.
This promotion taps into a powerful psychological aspect:
These vouchers need to go into little boxes. They need to be wrapped up like gifts and all of your messaging and marketing around these need to be around, buy this for yourself and give these to others. We have so many success stories of spas that have done this and sold tens of thousands of dollars with gift cards.
This strategy is effective because Buy One Get One (BOGO) promotions create compelling perceptions of value, often making consumers feel they receive more than what they pay for, significantly increasing sales (FasterCapital).
These promotions effectively leverage urgency and perceived generosity, motivating customers to act quickly.
But there’s an important catch:
Clearly differentiate gift cards from vouchers:
- Gift cards typically cannot expire for five years, if they can expire at all (check your local laws).
- Vouchers should explicitly state: “No cash value,” “Valid toward services only,” “Not valid with other promotions,” and include an expiration date
Make sure your promotional materials communicate these clearly to avoid confusion and legal headaches.
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Tracking and Honoring Your Client’s Gift Card Behavior
Track each voucher carefully. Daniela suggests numbering vouchers and recording who received them to accurately track their redemption. Recognizing and appreciating clients for bringing in new business can greatly boost salon loyalty and referrals.
Tracking allows you to see the effectiveness of your promotion clearly. It helps you build a loyal client base
Why Physical Gift Cards Matter More
Physical gift cards and vouchers have greater perceived value than digital ones.
- Clients associate physical cards with thoughtfulness.
- Jewelry boxes or nicely wrapped packages add tangible value.
Daniela highlights using jewelry boxes specifically, as it significantly enhances the perceived value and gifting experience. This aligns with consumer research, noting that “a significant portion of consumers still prefer physical gift cards due to their tangibility, perceived thoughtfulness, and personalization” (ResearchGate).
Key Takeaways:
- Actively market your gift cards and don’t assume clients know about them.
- Use smart financial management to smooth cash flow.
- Offer clearly differentiated promotions to attract gift buyers effectively.
- Track your promotions to reward and understand client behavior.
Gift cards, done right, become your salon’s secret weapon to boosting revenue and attracting new clients.
Ready to Transform Your Gift Card Program?
Download our free resources to get started:
Gift Card Marketing Checklist → Complete implementation guide with 50+ actionable steps
Email Templates Bundle → 5 professional templates to promote your gift cards
And don’t forget to check out Daniela’s Spa Marketing Made Easy podcast for more actionable tips to help grow your business.
P.S. For even more proven salon marketing tips, don’t forget to check out the rest of our Marketing 100 series.
