I have to interrupt my historical dialog this week as I traveled to Chicago for the Motivation Trade Show and the show was interesting enough to discuss.
It was much more attention grabbing for us this year than it was in 2006….this time, almost every merchant and distributor was already doing business with us or had heard of us through the grapevine. They were anxious to discuss an initiation or expansion of gift card relationship. It was nice to know that we had reached the point of being courted.
We already have over 100 national merchant gift card in our program and the time had come for us to selectively add only those that we thought would be of interest to our expanding member base. Happily we did find a few and the additions will bring our expansive web mall to over 700 total merchants. (Boy, we have come a long way in the last year).
According to a survey by Discover Card, 58% of respondents said they would be "thrilled" to receive a gift card because they could buy what they want, and another 26% said they would be "touched" by the giver's thoughtfulness. Respondents overwhelmingly feel that gift cards are a thoughtful gift. The survey also revealed that 76% of respondents will consider giving a gift card because it ensures the recipient will ultimately get what he or she truly wants. Among the other leading reasons why gift givers will consider gift cards this year, 65% said they were easy and convenient for both the giver and the receiver, while 64% favor them because they provide the recipient with multiple purchasing options.
While we are on the subject of gift cards, I ought to mention that cards are still only a small percentage of our mall business. Although we sell the gift cards at face value (a must), we do offer points back to the members and participating non-profit member providers. Once you factor in the credit card and fulfillment costs the margins are relatively small.
So why do we do dedicate a category to gift cards? First of all, our members love them and that is of primary concern to us. It is also a marketing tool that creates increased member purchase activity in the main mall itself. And of course, the added benefit is that the purchase volume helps enhance our relationship with the merchants.
The show was very successful for us and we look forward to next year with a great deal of anticipation. Our membership base is growing very rapidly and our sales will grow even more so. Next year, we expect to be elevated to the red carpet and champagne star treatment.
…..more next week.
