Are coupons and gift cards part of your current marketing strategy at your medical spa?
If not, they should be.
In today’s landscape, marketing seems to be increasingly focused on more digital forms of marketing, such as SEO, email, social media and so on.
But, while any of the above certainly generate results, it’s also beneficial to include some of the more classic, tried-and-true marketing strategies like coupons and gift cards into your current strategy.
Why You Should Accept Coupons
When used correctly, coupons can be particularly beneficial for small businesses. Here’s why:
- Generate Brand Awareness (And Give Your Business the Competitive Edge)
Coupons make your business stand out from the rest.
According to Nielsen, with the exception of consumers who are purchasing with the intent to replenish their stock, coupons are the main influencing factor as to why consumers may make particular brand purchasing decisions.
In fact, coupons can be more influential than even recommendations and advertising.
Another study found that 80% of shoppers would very happily switch brands if there was an enticing coupon involved.
SMBs have to compete with both big and small businesses alike, which means that coupons are still one of the tried and true methods of incentivizing potential customers to buy from you instead of any of the above.
In fact, many would argue that coupons are even necessary to compete in today’s marketplace.
- Generate More Revenue
Coupons can generate more revenue in a variety of ways, both upon the immediate completion of the sale and in the future.
For example, if you offer a coupon for $10 off a $75 purchase, people are much more likely to spend the extra bit of money at your spa in order to take advantage of the deal.
Similarly, whenever customers spend over a certain dollar amount, you can reward with 10% off, which incentivizes them to come back again – perhaps sooner than they otherwise would have (if they would have at all).
As you saw above, today’s consumers are largely motivated by coupons. So, if you want to turn new customers into returning customers, you have to give them a reason to do. Simply put, coupons are a key part of generating customer loyalty in the first place.
- Reward Loyal Customers
Coupons are also a great way to reward your loyal customers.
Loyal customers are your most profitable ones, which means that businesses should go out of their way to reward this loyalty because they are keeping you in business.
As we’ve said many times on the Yocale blog, repeat customers spend 67% more over time. They also generate more referrals as well.
- Boost Profits During Slow Times
There will inevitably be slower times at your spa, such as certain times of the day. A great way to boost your profits during these slow times, however, is to offer discounts that require people to “act fast” before they’re gone.
Why You Should Accept Gift Cards
People love gift cards. In fact, gift cards currently amount to 160 billion dollars in the US. And they only continue to get more popular as time goes on, as you can see from the statistic above.
Here are a few reasons why you should consider accepting gift cards at your medical spa:
- Generate Brand Awareness (and Attract Highly Targeted Customers)
For every SMB, brand awareness is imperative. Unfortunately, that often comes at a cost (i.e ads and marketing, etc.).
Gift cards, however, are the exception to the rule. First and foremost, they are very inexpensive – especially in comparison to any money your business might spend on ads.
Further, for every gift card you sell, you actually get two customers (the purchaser and the recipient). But what’s particularly powerful about gift cards is the fact that they are likely to attract highly targeted customers to your medical spa.
Gift cards don’t just attract anybody to your spa – they attract people who are specifically interested in your services and who will also make a purchase.
Think about it this way: if someone is buying a gift card from your medical spa, they are going to be giving that gift to someone who is going to be interested in your medical spa in the first place.
Many forms of marketing miss the mark when it comes to targeting customers, but gift cards are one of the few exceptions.
Here’s another important thing to consider about gift cards. Gift cards are kind of like referrals for your business, just in a different form. This is very powerful because referred customers are 4.5 cents more profitable on a daily basis than customers who were not referred.
They are also more loyal and show a higher customer lifetime value (CLV) as well.
In summary, gift cards are not only a very inexpensive way to generate brand awareness but they also generate the right kind of brand awareness for your business (both in terms of targeted customers and customers who will go on to become more profitable), giving you greater bang for your buck.
- Customers Spend More
Not only do you immediately improve your cash flow upon the sale of a gift card, but once gift cards are redeemed your business tends to make a profit. Either the gift card will never actually be redeemed ($1 billion in gift cards go unused every year), or people will spend more the value of the gift card.
Regardless of the value of the gift card, studies show that people tend to spend more. In fact, 65% of people will spend nearly 40% more than the actual amount of the gift card.
Unlike physical gifts, like various spa products, gift cards also can’t be returned or exchanged after the sale, which allows you to maximize profits even more. Returns can be both time consuming and expensive, which is yet another advantage of selling gift cards.
- Position Your Medical Spa as a ‘Gifting’ Business
The majority of gift card sales take place around the holidays, but nearly half of them are bought as birthday gifts and another half are bought as a ‘thank you.’
By aligning the marketing of your gift cards with any of the above holidays, you position your medical spa as a business that is a great source for gifts.
How to Create Coupons and Gift Cards with Yocale
Both coupons and gift cards can be found in the same place – under ‘Deals.’ Here’s a step-by-step instruction on how to create them.
Note that coupons can be applied to both services and products.
Step 1: From the top of your Yocale screen, go to ‘Tools’ > ‘Business Tools’
Step 2: Select the ‘Deals’ icon.
Step 3: From here, you can either select the ‘Coupons’ or ‘Gift Cards’ icon (for the sake of this tutorial, however, we will show you create coupons.
Step 4: Next, customize your coupon by filling out all your coupons details.
Here are some things to note when customizing your coupon:
- The Discount value can either be fixed $ account or a % amount
- For the Coupon code, you can either assign your own coupon code or use the ‘Auto Generate’ button to create a unique code.
- As mentioned above, you can use coupons for both products or services. If you aren’t applying your coupon to services (i.e. your coupon is for products only), then unselect #1. However, if your coupon does apply to services, then you should select #2 OR only select the services that apply from the list.
Wrapping It Up
Both coupons and gift cards are beneficial for your medical spa business. Between the two, they generate brand awareness, customer loyalty and more revenue.
Do you have any tips for accepting coupons or gift cards that you’d like to share with us? We’d love to hear your tips and tricks below.
Yocale writes about digital marketing 5X a week. We also write a lot about how to grow your medical spa business. In the meantime, you might also be interested in the following blog posts:
Do you want more appointment bookings and growth for your medical spa business? Yocale is home to the top, free and simple spa software on the market. Our beautiful and easy-to-use calendar gives you the extra hand to both run and grow your medical spa business at once. Click here to sign up for FREE or learn more.
You can also book a personalized demo here.