I cannot tell you how many times I just stand in my local grocery store and watch consumers walking by the gift card display. This last weekend, I was visiting a Pavilions store in Newport Beach, California. I stood and counted the amazing foot traffic that passes by the two end-cap displays showcasing nearly 400 facings of gift cards.

I wonder how many of these consumers realize the different brands available, and while I am wondering, I may see one or two consumers actually reviewing the display.

Consumers need guidance in the current expansion of gift card malls into stored value cards like prepaid wireless & long distance, reloadable debit cards, open loop, and digital media.

We feel this promise of the self-serve gift card mall is a sound bite of marketing managers who do not recognize the power of human communication in explaining a new product category to a consumer who is willing to listen, so he/she understands this new world of intangible purchases.

While sales in gift card malls may range from 6–10 cards per day, with an average of 200 facings and 75–100 card issuers, I believe most retailers leave a significant amount of money on the table (or more accurately, hanging on the shelf). Smart Circle has developed a network of more than 350 sales offices with thousands of trained retail sales professionals selling consumer value cards for card and ticket issuers like the Atlanta Braves, McDonalds, and many other name brands, and our experience has proven again and again that a great deal never will move if not explained and communicated properly to the consumer.

With sales reps assisting consumers at gift card mall displays, we have seen card sales increase an average of 20 times compared to regular self-service sales. While the Smart Circle consumer value cards may take only 10 facings in the gift card mall, they outsell any other card when a Smart Circle sales representative is present. The interesting fact is that we have seen an increase in sales for the gift card category while selling an additional $500–$3,000 (15–100 pieces) PER DAY in value cards.

The biggest advantage, though, is the education that sales reps provide to the consumer. While the consumer may not purchase the product on the spot, he/she now understands the product, and on the next visit, while the assisted sales rep may not be booked in that retail location, he/she can make a choice.

Assisted sales need to balance the educational element while a product category still is a novelty in the foot traffic pattern by retail location. A grocery environment that the consumer may visit twice a week has a rotating presence of sales representatives for maybe one week out of a month; the time spent in a department store may be one month out of a quarter to follow the distinct consumer visit pattern.

 3 Comments | |  Print |  Email

This entry was posted on Monday, April 27th, 2009 at 3:17 am and is filed under assisted sales, gift cards, retail. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.