News

Gift card sales get e-mail boost

Restaurants increase sales and profits through targeted e-mail marketing gift card programs.

April 25, 2007

According to the National Restaurant Association, 78 percent of surveyed consumers said they would like to receive restaurant gift cards or certificates on special or holiday occasions. No surprise then that gift card sales have soared over the past several years with annual casual-dining gift card purchases totaling nearly 5 percent of restaurant sales in 2006, according to the NRA.

Restaurant operators are not only relying on walk-in customers to boost their gift card bottom line, many are now using e-mail marketing, or a combination of both, to drive sales. Case in point: Flat Rock Grille.

Fred LeFranc, chief executive officer of Charlotte, N.C.-based Flat Rock Grille, said gift card sales during a six-week period reached $250,000. LeFranc said sales were driven through an integrated marketing plan that included e-mail blasts and in-store promotions.

LeFranc said he was an "early adopter" of using e-mail marketing as a way to promote restaurant offerings. And because Flat Rock Grille gift cards can be sold online, each e-mail includes a direct link to their Web site, making gift card purchases easy and convenient.

To promote gift-card sales during the winter holiday season, LeFranc said an e-mail was sent in November to get people thinking about buying gifts. "And we reinforced (that promotion) about three weeks later with a second e-mail," he said.

Holidays account for 85 percent to 95 percent of Flat Rock's annual gift card sales, and the added bonus; they bring people into the restaurant.

A natural fit

After the traditional holiday season, spring is the second highest sales period for gift cards, primarily because of a trio of events: Mother's Day, Father's Day and graduation.

"Gift cards make a nice and easy gift for these holidays," said Eric Douglass, senior account executive with Alexandria, Va.-based Fishbowl Marketing.

To help drive gift card sales, Douglass said some chains tout purchaser incentives, either online, in an e-mail or in-store, such as the offering of a $10 bonus gift card to customers who buy $50 worth.

"These incentives have a secondary benefit of driving guests into the restaurant," he said. "Once they're in the door, it's very common (for them) to stay for a meal and then purchase the gift card on their way out."

Through e-mail promotions, restaurants have the ability to communicate with their customers and build a buzz about restaurant offerings, even during the slow times.

"Gift cards represent another way that restaurants can offer value to their guests," Douglass said. "During the spring and holiday seasons, gift card promotions become very relevant for loyal guests. And e-mail is very proactive. It offers the loyal guest/eClub member an easy, convenient path to make their purchase online by simply clicking on the link."