Pay for it online, redeem it at the store
A state-run chain of liquor stores in New Hampshire found a point-of-sale promotion that awarded gift cards redeemable at its stores for the purchase of six popular brands of wine so successful that it plans to sell the gift cards on its web site this summer. Though the cards won’t be redeemable online, they’ll be sold online for store redemption. The program, offered at the 73 stores operated by the New Hampshire State Liquor Commission, uses Paymentech, Inc.’s FlexCache gift card product.
The stores saw a 71% increase in sales for the six brands of wine during the four-week promotion, which was suspended after one month because it had already reached its three-month sales goal. The promotion resembled a sweepstakes in that customers who qualified by purchasing three bottles of the promoted brands mailed in their receipts to receive a gift card whose value could range anywhere from $5 to $1,000.
“Offering the gift card promotion to our customers not only increased sales but also gave us some great ideas for promoting our products in the future,” says Peter Engel, director of store operations for the NHSLC. “Our distributors are thrilled.”
Gift card sales reached $45 billion in the U.S. last year and are expected to be double that by 2007, according to industry estimates. From 2002 to 2003, Paymentech has seen a 230% increase in FlexCache gift card transactions.
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