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Gift cards — everyone loves getting them, but not everyone remembers to use them.
That’s right, a surprising number of gift cards go unredeemed, quietly gathering dust in someone’s drawer or virtually getting buried, in their email inbox.
As a med spa owner or manager, you might be thinking, “Well, we’ve already made the sale — who cares if they actually get redeemed, right?”
But don’t your chickens before they’re hatched: Gift cards aren’t considered sales until they’re redeemed, as any accountant would tell you.
With many different gift card regulations to follow, tracking your gift card sales and redemptions is a must. If you’re not, you’re leaving money on the table.
Below, we’ll show you how you can keep tabs on your gift cards.
What is gift card tracking?
Gift card tracking helps you monitor every stage of a gift card’s lifecycle — from the moment they’re sold to when they’re redeemed by a client.
However, tracking also helps address one of the common challenges with gift cards, which is that a significant number of them are never redeemed.
47% of US adults have at least one unspent gift card or voucher with an average value of $187, which amounts to $23 billion in total. Just imagine how much revenue you’re letting slip away if you’re not keeping track 💸
But again, you might be asking, “Why should I worry about unredeemed cards?”
Well, different states have their own laws regarding gift card expiration dates, so the rules can vary depending on where you operate.
In fact, if they remain unredeemed during a certain period (depending on the state law), some states require businesses to report the value as unclaimed property and hand it over to the state.
When this happens, not only do you lose the chance to keep that revenue, but it also creates an administrative burden for your medical spa to comply with state regulations.
The good news? You can avoid all of this with efficient gift card tracking.
Why gift card tracking matters for med spas
Gift cards are a powerful tool for acquiring new clients, encouraging existing clients to rebook, and strengthening client relationships. But without proper tracking, they can turn into financial and operational headaches.
Let’s break down why efficient gift card tracking is essential for keeping on top of your gift card balances, sales and redemptions.
Boosting revenue management
Accurate gift card tracking ensures that every dollar from gift card sales is accounted for — redeemed or not.
Without a proper system to track gift cards, you risk lost revenue, expired balances that go unnoticed, or even disputes with customers.
By carefully monitoring gift card purchases, redemptions, and outstanding balances, you can encourage clients to use their gift cards before they expire and forecast cash flow more effectively.
Ensuring accurate reporting and insights
Gift card purchases may seem like a straightforward revenue, but without proper tracking, they can create gaps in financial reports and an inaccurate picture of your business’s actual earnings.
As we explained earlier, gift card revenue isn’t technically earned revenue until the card is redeemed.
With a reliable tracking system, you can:
- Generate reports on gift card sales, redemptions, and balances
- Reconcile payments from multiple channels
- Make informed decisions about gift card promotions and policies
💡Pro tip: It’s much easier to access this data if you’re offering e-gift cards or digital gift cards, as you can track everything from sales to gift card redemptions and balances in your system.
Uncovering sales trends and patterns
Besides a nice extra cash flow, gift cards are also a goldmine of insights into customer behavior.
Analyzing gift card sales trends can help you understand which treatments are most popular, when demand surges, and how customers prefer to spend their gift cards.
For example, if gift card sales peak around holiday seasons or special occasions like Mother’s Day, you can use this data to create relevant gift card promotions.
Or if certain treatments are redeemed most often, you can offer gift cards specifically for them and drive even more sales.
Maintaining gift card compliance
Gift cards also come with legal responsibilities.
Federal and state regulations govern expiration dates, fees, and unclaimed balances, which your med spa must comply with.
For example, under the Credit Card Accountability Responsibility and Disclosure (CARD) Act, gift cards or gift certificates can’t expire for at least five years from the date of issue.
Federal regulations also allow med spa owners to charge inactivity (dormancy) fees, but not until a year has passed and the gift voucher hasn’t been used.
Proper gift card tracking helps you follow these regulations, allowing you to monitor expiration dates, manage outstanding balances, and stay compliant.
The benefits of gift card tracking
Let’s explore the tangible benefits of how gift card tracking helps your med spa streamline operations.
Prevents administrative errors
Imagine a client coming in to redeem a gift card, only for you to have to tell them it’s already been used — except they’re certain it hasn’t. Awkward. Or, even worse, you accept an expired gift card, costing your med spa money.
A robust tracking system helps you accurately record all gift card details, such as who bought it and when and when the gift card expires. It prevents double redemption, forgotten e-gift cards and accounting discrepancies.
Enhances customer experience
Nothing ruins the excitement of using a gift card like a redemption issue at checkout.
Clients expect a smooth experience, whether they’re treating themselves or redeeming a gift card from a loved one.
Proper gift card tracking allows you to verify gift card history, balances, and expiration dates, eliminating awkward situations and confusion during checkout.
A seamless redemption process also makes first-time gift card recipients more likely to have a positive experience and become regular customers.
Loss prevention
Gift card fraud is a serious issue. As recently as 2022, 65,000 customers were swindled out of more than $228 million in gift card scams.
Gift cards are essentially pre-paid revenue, but without proper tracking, they can become an easy target for fraud or theft.
Unauthorized use, duplicate redemptions, or staff members issuing and pocketing gift cards without recording them are just some of the risks to be aware of.
A robust tracking system helps prevent these issues by logging every transaction and ensuring that every gift card is accounted for.
What systems do med spas use for tracking gift card usage?
Gift card tracking isn’t something you want to do with sticky notes and spreadsheets.
There are various tools offering some sort of gift-tracking functionalities for med spas:
- POS systems: Many of them come with gift card management features.
- Online booking: Some med spas offer digital gift cards on their websites and online booking platforms, making it easy for clients to buy and send them.
- Practice management software: Comprehensive medical spa software (like Pabau) goes beyond a basic POS or online booking by centralizing client information, appointments, and gift card tracking all in one place.
Best practices for gift card tracking in med spas
Gift cards are a smart business move for med spas, but it’s up to you to decide if they’ll be the gifts that keep on giving, or more hassle than they’re worth.
The good news? A few best practices can make all the difference.
Let’s explore them.
Use a practice management system that supports gift card tracking
This is the first thing you’ll want to do if you don’t want your gift cards to turn into admin nightmares for your staff and a bad experience for your clients.
Forget the paper notes and manual spreadsheets, which are errors, headaches, and compliance risks just waiting to happen.
A robust practice management system with built-in gift card tracking ensures that every sale, redemption, and balance is automatically recorded.
With a system like Pabau, you can:
🎟️ Link gift card sales to specific clients for better tracking
🎟️ Sell gift vouchers online and in-clinic
🎟️ View each client’s gift card balance and spending activity
🎟️ Track expiration dates, unredeemed gift cards and balances with a few clicks
🎟️ Generate detailed reports to monitor gift card revenue
Set clear policies for gift cards
Having clear gift card policies helps you avoid misunderstandings with clients and protects your business.
Define terms and conditions like expiration dates, refund rules, and usage restrictions upfront.
Display the policies on your website, at checkout, and on the gift cards themselves.
Train staff on gift card processes
Your team will most likely be selling the gift cards, so they must be well-trained to prevent errors.
Train them to issue, redeem, and track gift cards so they can confidently assist customers and handle any questions.
Show them how to check balances, handle expired gift vouchers or check if they’ve been already redeemed using your medical spa software.
Monitor and audit gift card activity
Gift cards shouldn’t be sold and forgotten.
Regularly monitoring and auditing gift card activity helps you catch errors, prevent fraud and tweak your strategy.
Review sales, redemptions, and outstanding balances to spot trends, like spikes during holiday seasons or underutilized gift cards. This data will help you refine your promotions and make the most of them.
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Promote gift card usage
People get busy and forget — they sometimes just need a little reminder that they have free money waiting to be spent at your med spa.
You can nudge clients to redeem their gift cards in various ways that don’t need to be pushy.
For example:
- Send targeted email campaigns to those with outstanding balances
- Create attractive promotional campaigns
- Run limited-time incentives, like a complementary product for redeemed gift cards within a month, for example
Maximize your med spa’s gift card management with Pabau
Gift card tracking shouldn’t be just another task on your endless admin list at your med spa. It should work for you — boosting revenue, creating a smoother client experience, and keeping you compliant with minimal effort.
Choosing the right system with built-in gift card tracking tools is one of the most important decisions you and your team can make.
Pabau is an all-in-one practice management software designed to help med spas handle booking and scheduling, patient management, marketing, and lots more. It also makes revenue-boosting features like gift cards as easy as possible.
Track expiry dates, run reports, and see everything on the patient record. Everything runs smoothly in the background, freeing you up to focus on enjoying the extra income and turning first-time visitors into regulars.
Book a demo today and see how easy gift card management can be! ✨
