Gift Certificate Systems

The Gift – Savvy Merchant

A Must for Independent Retailers, Restaurateurs and Service Establishments

By John S. Harris

This is a guest post by John Harris (this is the fourth of a 4 part series)

Gift Systems. It’s a brave new world out there as far as online gift certificate services are concerned. Your most successful competitors are already there. If you’re not, it’s never too late. Most of the systems today can be up and running in literally one or two days. I put this table together to try and simplify a pretty complicated industry. There are billion-dollar vendors and tiny start-ups in this space, and hundreds of companies. So this is merely my attempt to clarify what’s out there.

The Landscape of Online Gift Certificate Services Available to Small Businesses

	Traditional Certificates	Magstripe Cards	“Virtual” Certificates
Medium	Paper or Card Stock	Plastic	Email, or Mobile Token
Easy to sell in-store	Yes	Yes	Not Yet
Easy to sell online	Yes	Yes	Yes
Time to get up & running	1 -2 days	1 – 3 weeks	Varies
POS integration	No	Yes	Varies
Security level	Low	High	Medium
Setup Costs	Low	High	Medium
Loyalty-use option	No	Yes	Varies
Monthly Fees	Offline=No Online=Yes	Offline=Yes	Online=Varies
Transaction Fees	Offline=No Online=Varies	Offline=Yes Online=Yes	Online=Yes
Pros	Very low cost, can now be easily put online, little to no transaction costs, very easy to implement, many consumers like the physicality, usually specific to one merchant	Medium cost with any volume, very secure, real-time, can integrate to POS, can be used as Loyalty card, convenient, quality format	Instant delivery, more consumer personalization options, is a true “green” alternative, a very popular option with consumers, mobile option is exciting
Cons	Not as secure, not integrated with POS, printing and fulfilling is no fun, still need quality design work, no online redemption	Getting set up is typically hundreds of dollars, and POS integration adds both initial and ongoing costs	Email isn’t a very elegant gift format, redemption integration not a picnic, adds transaction costs
Sample Vendors (with URL)
PLEASE NOTE: This is by no means intended to be a definitive list. There are many vendors in some of these categories and you should search on your own for all options. Listing a company here is not an endorsement, and no representation is made as to performance or reliability.	GiftLinx.com puts links on the merchant’s website and handles the actual online ordering, printing and mailing to the merchant’s clients, a labor-saver	FirstData.com has a deep, regulated list of quality magstripe system and services resellers	GiftTango.com provides both Email and Mobile forms of their virtual gift certificates. They can be customized for any merchant.
	GiftCertsOnline.com also puts a link on the merchant’s website, and provides the online ordering engine and an option to print certificates online, but does not do fulfillment.	Swipeit.com serves the small business market directly, covers setup, system and fulfillment	GiftCertificates.com has long enabled its certificates to be provided in email form, with many discounting options
	TheGiftCardCafe.com puts a link on the merchant’s website and handles the online ordering. They do not do fulfillment, but offer an “Instant” eGift via email	ProfitPointInc.com provides a wide array of gift, loyalty, credit and related card marketing and operations services	Cashstar.com offers virtual gift certificates in Email form, with many customization features for consumers. Online or in-store Redemption.

About The Author – John S. Harris has been a small business consultant for over twenty years. A former owner and operator himself, John is a principal in Lynch + Harris, a consulting firm specializing in operations management and marketing communications that helps independent restaurants and retailers expand their business and improve their operations. John can be reached at ircharris@gmail.com

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How to Market Restaurant Specialty Items for the Holidays

A question was posed by one of our Restaurant Success Monthly Members, Buddy Guilbeau:
Do you have any ideas on how to increase my corporate hams sales for the holidays?  How about ideas on advertising my hams for the holidays?

I thought this may be one of those questions that others may want to ‘hear’ the response, so I’m posting it for all to see.  Buddy’s question:

My response:

I think that advertising for Ham Sales, in your case, or Gift Cards or even specialty meals packed to go for the holidays all have a similar approach.

The low cost / no cost restaurant marketing tactic is always “4 Walls Marketing”. Make sure the 4 walls of your place are communicating the message you would most like to push. This includes a multitude of ways and media to communicate the message.
4 walls:

Signage

Bathrooms Signage (one of my favorites) on the mirror or the back of the stall. Think about the captured audience potential.

Entrance Signage – Hit them before they even get in the door.  You program them to be thinking about anything you want before they even open the door.  I like to use a question “How Can You Get A Free Ham This Holiday?”.   It plants the question and they will want to figure it out and will most likely ask.

Interior Signage - Wherever appropriate, get a sign conveying your message.  You can even play off the door signage and either answer the question or ask more questions and make it a game.

Table tent or flyer on every table in the place.

Bag stuffer in every bag that goes out the door - whether it’s To Go food or delivery.  Get one on every plate or tray served or with every check you present. Don’t just bury it in the check presenter; put it right on top. Put the bag stuffer with every catering order and in every box lunch.

Email your list – craft a series of emails that keeps your message in front of your guests and intrigues them.

Website – Post it on your website.  Have a link from the promotion in your email to more details available online.  Online you can spell out all the details and benefits and exactly who the offer is perfect for or applies best.

Contest – Have a contest to give away a FREE item that you are promoting then have a big sign and a business card drop or little form to be filled out. The people that “Opt-in” the contest must want the prize so even if they don’t win send them a runner up prize for a special discount or offer that works with what you are promoting.

Mail your list – A direct response mail piece targeted to your existing guests, that already know you will cut through the mail clutter and can draw a huge response.  It doesn’t have to be fancy or expensive. It could even be part of a regular mail cycle like a newsletter.  Something you may want to try is drop out piece/insert that takes them out of the newsletter and is obvious when they open it.

Buy a list of the top 50 employers in your area and mail them.  This message needs to be a little different because they may not know who you are. In this case you want to use direct response tactics like we teach in the Restaurant Success System,  i.e. Headline, compelling copy, offer, expiration to just mention a few.

At the end of the day there is no magic bullet that is going to sell a million products but when you combine a bunch of methods you will reap results from all of them and your overall response will be tremendous.

Just like with everything else you have to take action.  Start with the items that you like from above and that are easy for you. Then work to add one a day until at the end of a week or so you have a tremendous amount of communication and marketing all working to sell your product.

For details and examples of everything mentioned above check out RestaurantSuccessSystem.com/noriskoffer/

In the Restaurant Success System you not only get examples, tactics and strategies you also get done for you downloadable pieces.  Yes the actual pieces that all you have to do is change your restaurant name and print.  It is worth a minute to check it out. RestaurantSuccessSystem.com/noriskoffer/

Thanks for the question, Buddy.  I’m sure your interest has helped others out!

Jonathan Munsell
Founder & Creator
Restaurant Success Monthly
Restaurant Success System

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Outrageous Advertising: How Can You Make Your Burger Outrageous!

A recent article in Nations Restaurant News prompted me to give some thought to Outrageous Advertising.  What product can you take and make over the top and even gain fan fair and maybe even some press?

Here a couple products that I think are way over the top and have garnered both of these restaurants huge press and local buzz.

Diger’s Diner in Brush Colorodo “Home of Colorado’s Biggest Burger”

Colorado’s Biggest Burger

Diggers Diner is serving up a fun filled meal with it’s new State Champion Burger.  With 3lbs of ground beef, a pound and a half bun, 8 slices of cheese, 1/2 a tomato, 1/2 an onion, 1/2 a head of lettuce, 1/2 cup of pickles and of course 12oz of fries it is sure to satisfy even the hungriest.  Although this burger can be split by at least 6 and still satisfy the brave might choose to compete in the burger challenge.  If you Eat ALL of it yourself (includes fries) you will be placed on the wall of fame, get a certificate of completion and of course we will by your burger! There is a 1 hour time limit.

7-patty Whopper promo strikes chord

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