Expanding revenue via gift cards for beauty and wellness businesses

Gift cards present one of the most overlooked revenue opportunities at today’s salons and spas. Stacked at the front desk or lying in a drawer, they tend to languish at businesses hustling to serve guests and manage their day. If this sounds like your front desk, you're missing out on a key revenue driver.

Digital payment and gift card usage is on the rise, with gift card sales increasing by 20% across the industry in 2024. American consumers would rather receive gift cards than clothing, books or media, and even electronics as gifts. High-performing salons and spas take advantage of this trend, earning gift card revenue year-round – not just during the December holidays.

These tips can help you begin integrating gift cards into your regular product and service offerings. With even a simple gift card strategy, you can capture more revenue 24x7, 365 days a year.

Beauty and wellness businesses see a considerable gift card boost three times during the year: Valentine's Day, Mother's Day / Father's Day, and the December holidays. Promote your gift card offerings around these times to help customers shower their loved ones with treatments and pampering. It makes gifting effortless for guests and lucrative for you.

An often-missed benefit of a strong gift card program is the opportunity to bring in new guests. By suggesting gift cards to satisfied customers, you’re turning those happy guests into brand advocates. Giving the gift of your business is the ultimate referral gesture, and gift cards help you expand your customer base with zero marketing costs.

When new visitors redeem gift cards, your business has fresh opportunities to make a great first impression and encourage repeat visits. Cultivate these guests to convert them from one-and-done gift card users to long-term customers in order to boost their lifetime value (LTV) to your business. Give them a VIP experience during that first visit to keep them coming back. That experience includes easy redemption and use of the gift card along with exceptional service from your business.

Cash in on the fact that 59% of gift cards are bought for giving to others, according to Blackhawk Network. Think of gift cards as referrals that will almost always convert into a customer visit. The odds that a $100 salon gift card will go unused? Slim to none.

The same study found that 37% of consumers buy gift cards to receive a discount or get a better deal. Cater to these value seekers with promotions like a free service with a gift card. This is a great way to keep guests loyal to your brand and even help them venture beyond their usual treatments. Say Judy comes in for a monthly cut and color. A free express manicure with purchase of a $150 gift card will mean Judy can spend the gift card on her usual hair services and get her nails looking flawless for free. Judy gets a good deal, with the salon encouraging trial of a different service and repeat visits.

Gamify the guest experience by awarding loyalty points for gift card purchases. The thrill of racking up points leads to the payoff for your guests: a free product or service discount. Again, gift cards serve as your tool to boost brand loyalty as accruing points takes repeat visits.

How to go the extra mile? Connect with guests using gift cards to provide VIP treatment throughout their visit: a warm welcome, a high level of service, and thoughtful product suggestions can lead to greater guest satisfaction, higher ticket sizes, and increased rebooking.

It takes little effort to set up, run, and manage gift card programs in software like Zenoti, with features designed to wow guests and make your life easier.

‍Start by offering gift cards across as many sales channels as possible—this includes in-person, online, and through your mobile app. Make sure customers have the flexibility to personalize their gift cards by choosing specific services or bundles, adding a tip, and tailoring the gift to their preferences.

Allow customers to specify a delivery date and time so the gift arrives at just the right moment. Gift card recipients should be able to redeem their cards at any location without extra hassle for your staff. Additionally, enabling recipients to check balances and expiration dates online or via an app can save your team time and streamline the process.

The more options you offer gift purchasers, the better the chance they will find something that suits them. Here's an example of three types of gift card offerings:

With automated reminders prompting guests to redeem unused gift card balances, you'll drive additional visits and more revenue for your business – and they'll love your brand for helping them remember the "free" money they haven't yet spent.

‍Managing gift card redemptions across locations can be a bit of an administrative hassle. To remove that problem, software like Zenoti unifies the entire operation for your brand. A gift card bought in Phoenix is easily redeemed in Philadelphia, leading to less work for the front desk.

Tracking gift card programs helps businesses spot trends across locations and measure metrics like year-over-year revenue growth, but doing it manually is time consuming and error-prone. Zenoti dashboards can take the hassle out of tracking gift card data.

Launch a gift card program that’s easy for staff to manage and effortless for guests to use. With ready-made design templates for a variety of gifting occasions or your own branded graphics, you can get started quickly. Back-end adjustments are simple, allowing you to customize the program to your business and provide guests with the flexible options they expect.

Start your gift card program and unlock an always-on revenue stream that helps you grow your clientele without additional marketing spend. Use performance tracking tools to adjust your strategy and maximize revenue from gift card sales.