In the US, 84% of organizations use tangible non-cash rewards, spending more than $100 billion annually on rewards including gift cards. An average of $764 was spent by organizations per employee on recognition and reward programs in 2020, typically in $25, $50 or $100 dollar denominations. And, the most common reward was an Amazon or Starbucks gift card. Isn’t it time your local gift card program got its fair share of this billion dollar market, giving organizations in your area a local choice for rewarding staff? Here, we’ll tell you how you can sell $500,000 in gift cards through bulk orders.
1. Be proactive and start early. Get employers involved with your gift card program from the start so they feel ownership of the program. This strategy was used to great effect in Ballinrobe, Ireland. In two months this gift card program secured $260,000 in sales- well on their way to $500,000 in their first year. And be prepared to get on the phone and proactively reach out to new and old contacts. In Downtown Peterborough, they approached employers who had purchased their paper gift certificate in the past, taking over $70,000 in orders in the first month of their new Boro Gift Card, with 80% of sales from local employers.
2. The local hook. The reason local organizations will buy your local gift cards over the big online retailers is precisely because they are local employers that are invested in the success of the local community. Use the local hook in your pitch to organizations and don’t be afraid to lead with the message that downtowns need their help, Amazon doesn’t. Strong, successful local communities benefit everyone, and they could be a part of that.
3. Prioritize service. Often the difference between buying your local gift card and an Amazon or Starbucks gift card is the customer service and personalized attention you can offer. Over in Enniskillen, Northern Ireland, a town with a population of 11,000, they increased their bulk sales by 37% in 2020 with a strategy that prioritized service. Each employer order was hand delivered with a personal thank you for supporting local and buying the gift card. You goal is to make it super easy to buy from you again.
4. Plan your campaign. With shop local as a central theme, plan your campaign to draw local organizations in. Could you offer a limited release for employers or a discount? Something that gives an added incentive for employers to buy your local gift card for their staff. That’s exactly what they did with the Canada’s Food Island Gift Card, this Stay and Savour tourism campaign featured a 20% discount, and cards released in phases, including an allocation for organizations. Little wonder that this program turned into a $1.7 million project in the first month.
5. Find your target organizations. When you’re planning which local employers to target, don’t fall into the trap of thinking you can only talk to organizations in your district. Instead, widen your net and prepare a list of your top 50-75 organizations to reach out to. Aim to speak with the executive assistant or administrator to the CEO, or the office manager. It’s sensible to zero in on the largest employers, but don’t discount the small guys either- smaller employers will often buy less cards but at a higher order value.
6. Build relationships. Organizations need to plan expenditure many months in advance, if they’re not able to buy your gift card this year, then chances are they will be able to next year. Or, if they only place a small order in year 1, that order value could increase next year. Investing in relationship building keeps your gift card program front of mind, ready for when budgets are set. This approach worked well in Enniskillen, Northern Ireland with local employers doubling their gift card orders in 2020, after first buying the gift card when it launched in 2017.
7. Move beyond the seasonal sales. It’s tempting to think that employer orders are only relevant at Christmas, not so! Employees need rewards and incentives all through the year, for overtime worked, sales targets achieved, projects completed, and your gift card could be just what they need. It’s worth investing in bulk order sales and promotions all through the year.
8. Think outside of the box. If you’re going all out to achieve $500,000 in gift card sales through local employers, it’s time to think outside of the box. In Kirkwall in Scotland, their local gift card was purchased by a local charitable trust for distribution to local families in need. And in Sunderland, their gift card was purchased by the local council to go out to families. So, as well as your ‘typical’ employers, local government, charities and other organizations can all be buyers for your gift card.
9. Finally, remember Pareto. The Pareto principle works on the basis that 80% of your revenue comes from 20% of your customers, and that’s definitely the case for your organizational sales where numbers are few but order values are high. Like in Downtown Peterborough, which took orders from local employers at $1000-$7000 per order. Not only that, but bulk orders tend to take less time too.
If you’re ready to hear more about how Miconex can help you to achieve $500,000 in gift card sales through the employer market, contact us today.