How to give a discount by giving a gift.
Discount with a Gift
How is it possible to give a discount with a gift? Simple actually! The last time you got a discount how did it make you feel? Now think about the 2nd time you went back to the place where you got the discount… What did you want before you bought something there again? Discounting kills and unless it is built into your pricing then it is very hard to get your customers paying full price after you have given them a discount. What about approaching this from 180 degrees?
How a SPA can give a discount with a gift.
Scenario 1 – Common promotion:
Bring a friend and you will BOTH save 25% off your first treatment. (A treatment costs $400, 25% = $100)
- Customer Mindset: Discounting (25% OFF)
- Attract: Deal Hunters
Question: Do deal Hunters ever return as frequent customers?
Scenario 2 – Discount with a gift promotion:
Bring a friend and you will BOTH receive a $100 gift card towards your first treatment.
- Customer Mindset: Value added (Receive $100)
Question: If the goal is to create recurring customers which method do you think is best?
Harvard business review showed that increasing customer retention rates by 5% increases profits by a minimum of 25%.
Icing on the Cake
Combine your gift card with a reward program and see what happens. Your customer uses the $100 and also earns points towards a reward.
Attract: Loyal Customers
Try KiSSapp’s Digital Gift Cards + Reward Program for your business today. Start turning your customers into loyal customers.