Breaking news — Gift cards are popular! (I’m joking. We knew this.)
This year, 27% of gift card shoppers planned to buy them this month and 75% of giftees have them on their wish lists, up 13% from last year.
This year, 27% of gift card shoppers planned to buy them this month and 75% of giftees have them on their wish lists, up 13% from last year.
I put a gift card on my wish list too even though I have a bunch I haven’t redeemed.
They’re a clever solution for shoppers who want to make buying presents easier on themselves without disappointing others. But…
You should understand the hidden risks that come with selling gift cards. The amounts issued are liabilities until redeemed and only the amounts spent are recognized as revenue. Let’s look at the timing of revenue recognition. Last holiday, 75% of consumers used at least half of their gift card money by Valentine’s Day. Almost 50% spent it all!
What could revenue recognition look like in your business?
Think ahead to January and early February: Does what you sell now — in selection and inventory availability — represent more customer choices than what you’ll be offering a few weeks from today?
In a few weeks, if you’re likely to…
They’re a clever solution for shoppers who want to make buying presents easier on themselves without disappointing others. But…
You should understand the hidden risks that come with selling gift cards. The amounts issued are liabilities until redeemed and only the amounts spent are recognized as revenue. Let’s look at the timing of revenue recognition. Last holiday, 75% of consumers used at least half of their gift card money by Valentine’s Day. Almost 50% spent it all!
What could revenue recognition look like in your business?
Think ahead to January and early February: Does what you sell now — in selection and inventory availability — represent more customer choices than what you’ll be offering a few weeks from today?
In a few weeks, if you’re likely to…
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… implement these doable skills to increase December revenue.
🧭 Four Pillars of Merchant Method: Focus on people skills
📚 Merchant Skills: Help last-minute shoppers without risking sales
✏️ Your Assignment: Course-correct your sales approach
📌 Bulletin Board: Understand gift card trends
🧭 FOUR PILLARS OF MERCHANT METHOD
Nurture relationships through customer choices
This features the People pillar and will dive into a specific area of customer service provided during the last weeks of the holiday selling season.
New to the Merchant Method or need a refresher? Get oriented.
📚 MERCHANT SKILLS
Focus on the giftee
Repackage customer service questions, sales scripts, and product knowledge to make them appropriate for the end of the holiday season, when foot traffic shortens customer interactions and rushes conversations.
This might look like asking giftee-focused questions earlier than you would during other times of the year, “Who’s on your shopping list today?” or featuring different types of product knowledge, “This past weekend, this was the most popular gift to buy because…”
Hot Tip: Your questions and product knowledge tips should sound like your brand voice.
📚 MERCHANT SKILLS
Focus on the giftee
Repackage customer service questions, sales scripts, and product knowledge to make them appropriate for the end of the holiday season, when foot traffic shortens customer interactions and rushes conversations.
This might look like asking giftee-focused questions earlier than you would during other times of the year, “Who’s on your shopping list today?” or featuring different types of product knowledge, “This past weekend, this was the most popular gift to buy because…”
Hot Tip: Your questions and product knowledge tips should sound like your brand voice.
✏️ YOUR ASSIGNMENT
Assess, brainstorm, and communicate
Assess: Spend 3 minutes assessing your gift card sales and recent customer behaviors. Is there an adjustment to make when helping last-minute shoppers or customers buying gift cards?
Brainstorm: Spend 5 minutes brainstorming customer engagement questions that emphasize your readiness to provide giftee-specific recommendations and product knowledge. Your goal is to instill gift-giving confidence.
Communicate: Spend 2 minutes updating your weekly focus with these sales tips and communicate them with your team. For rapid integration, role play scenarios to fine tune the approaches and troubleshoot any objections.
📌 BULLETIN BOARD
More resources about gift card sales
Here are 8 Things You Need To Know About Gift Cards
Holiday 2024 gift card trends by Bank of America
Holiday Shopping Statistics For 2024: The Season Started With A Bang by Forbes
Gift Card Statistics by Capital One Shopping
