No-Cost Marketing Using Gift Certificates

No-Cost Marketing Using Gift Certificates


The marketing section of the survey
really produced no surprise. Some of you are stellar marketers you
know exactly what you’re doing. You nail it most of the time. In the times that you don’t know . you’re your learning from it you’re growing as a
marketer. Some of you are still really really struggling and one of the things that you struggle
with the most is getting new customers. In this nugget i’m going to share with you my hands down favorite way to get new customers at absolutely no cost. I’m talking about giving away gift certificates. When I’m out on the road speaking to a
group of retailers just like you I usually do a quick survey and i
ask people how many of you are spending less and less money on
traditional media advertising. You know, a newspaper, television, cable, things
like that. Most of the hands in the room go up. And then i asked, how many of you have have quit using
traditional media advertising altogether There’s typically a handful of people that say
no I’m no longer throwing good money after
bad Let’s just recognize that traditional media
advertising is not what it used to be your customers where no i’m sorry your prospects have a
lots and lots of places that they get their information and advertising your local news paper
for instance is no longer and out so even though traditional media is not working like it
used too yes still need to get new customers
don’t do you still need to acquire new customers and my favorite way to get new customers is to give away yet certificates dot i’d know some of your going what you’re
giving away by buddy bob don’t do that anymore let’s back it up all explain how it works and why it works and then
give you a couple of ideas on how to use first of all you have to understand a couple of key
concepts to understand suited to realize that you’re not giving
away money you’re getting customers first concept is the cost of acquiring a custom recognize that you pay why do you advertise to get new
customers in your store as a customer acquisition costs your location if you’ve got a great
location at the customer acquisition cost lester’s recognize that you pay there is
a cost that’s the first time since the second
concept is the room wall of reciprocity and the
role of reciprocity simply says givers dept and when you tier of the someone eight
gift certificate they feel eight needed to give back so
when you here’s somebody something you get i’ve shot at their business thirty concept is break even on the
first sale to break the bank on the back n you know i see this all the time people
get to caught up with making sure they make them margin aud every transaction and i’m suggesting to you that you can give up a little bit on
that first sale because you’re going to get people you know you’re going to
acquire customer it so you’re not going to make that money on the personal you
gonna break even or do a little better on the for sale and you get a break the bank on the back
in when people keep coming back in again
and again and again and again so you don’t make your money in the
first transaction because you’re making money and all the subsequent
transactions and finally the fourth key concept is lifetime value custom lifetime valuable customer can be
defined as the total amount of dollars in someone’s going to spend with you their lifetime so what we have here is a different
approach you can’t buy your way into it anymore i guess you can if you have unlimited resources but i am suggesting that with gift
certificates you can give your way into success you see what you’re doing is you’re
recognizing that you have to pay and you’ve given some body again and they’re going to reciprocate income
and it did not collect that money in the for sale but you’re going to get them as a
customer want to get them as a customer i’m going to assume you’re gonna do a
great job and you’re going to get them back again and again and again you’re gonna make the money in the lifetime bout so does the key concepts now loved your
certificates because the only time you actually hehe to get a new customer to acquire a new
customer is when people come into your store if they don’t come into your store if they don’t use
the gift certificate you’re not out of the money like you are
with advertising you’re out of third of a piece of paper
you’re out a scrap of paper so it’s very very accountable as a
customer acquisition through let’s stop for a second because i see this mistake made often people give aways say haha hundreds of five hundred dollar gift certificate to
make it real free t_v_ here really uh… ray they say to me bob i’m giving away five
hundred dollars worth of gift certificates and i didn’t have the correct them if
they did not giving away five hundred dollars of gift certificates you’re
giving away a hundred pieces of paper it’s not worth it anything till people who tell people
come into your store and then you have an opportunity to earn their business you see how slick that is why are they so it’s uh… uh… still
so very very effective the first reason is the quality of the
gesture you know that the difference between a
coupon in a gift certificate is a difference between night and day a gift certificate is eight coupon on steroids so when you get somebody death why our
state though that state pay attention it really really is wonderful and it
puts the rule reciprocity so here’s a couple of key questions that people ask about gifts number one how much should buy gift certificate
before what’s the right d nomination and although there’s no real correct
answer i want to suggest to you that you look at it this way the amount of the gift certificate
should be such that when they are averaged a out the average sale represents a break even i go you go along huh what’s he talking about let’s do the
math quickly so if you ever say i would say twenty
dollars and your cost of goods is off fifty percent of easier ten dollars
worth of merchandise your cost into every twenty dollar sale as long as when you got all the gift
certificates and you add up the total sales at work associated with those gift certificates as long as that stated twenty dollars you are of quieter in new customers at a
break even and i would hope that you would say please
give me as many customers as i can possibly get in the shortest
amount of time now to break even because you know that when they come
into your store you’re going to do a great job you’re gonna get it back again and again
the game and you’re going to have again a rope boxed lifetime value const second key our car or a common question
that disasters how much buying friendship i put on my
gift certificate in the incentive that is as little as
possible baat that was really pay attention and i want
to drive this point hole because if you don’t do this you’re
going to get there you have to have one line of fine print
that says only one gift certificate for person if you don’t do that sooner or later somebody is going to
gather up all budget gift certificates let’s say you give you a ten dollar gift
certificates they’re going to come into your store
and they’re going to you know come in with ten ten dollar gift certificates and expected to be treated as a hundred
dollars not what you want you don’t want it to you know away this or third common question is it isn’t
somebody going to take advantage of me isn’t somebody could screw me and the answer is of course day are if you give away a ten dollar gift
certificates on the low weight is gonna walk around restore the calculator rejected nine dollars and ninety nine
says and ask for a penny back there’s a couple things to think about when u think about that’s in there first of all let it go let it go understand that if you’re doing business
the right way you are going to your gifts are going to are tracked with the right people so uh… it’s it’s it’s a matter
of perspective sure those people in the way you to know wendy but that’s okay let it go look at the numbers as long as the
numbers are or working out you’re good to go on to as long as that
in my scenario the twenty a dollar average sale as long as at twenty dollars is holed up
into getting great new customers in your store you should be happy also understand that people are tire kickers william uh… an example let’s say you all the install wind
center and a stalwart gets a hold of you gift
certificate if that’s all i get suggested that
particular selling center it’s like burning a hole all it’s somebody’s pocket thank have to come in they’d have to use it and they may not need anything that
ticular daddy but they’re in your store detected not you’re thinking about you if you give them a great experience it
may come back in a month to or a year and spend ten thousand dollars on
machine that worth it i hope you’re saying yes and i also want to think about it this
way if you’re still feeling a little nervous about it let’s say you gave away ten ten dollar gift certificates and eight adele seven of them people came in they spent nine dollars and ninety nine
cents they were road in your stabbed a they never came back on my guys it was
just a disaster you know seven or disaster to people
came in and they came in three or four five
times it’s been a couple hundred popsicle so they work worth having as a customer but you know i mean they’re not really one person came in your store indicating that whale that fifteen twenty thirty
thousand dollar custom hi rescue is that hundred dollars where the gift
certificates worth you were distribution in again i’d hoped you’d say yes so here is a a couple of very very
simple and there’s many many many ways that you can use gift certificates but uh… along the most basic level when you’re talking to somebody somebody
says to you uh… what do you do when you say i am
bob irobot bike shop and they say well i’ve never i’ve been thinking about
getting to bicycle right they’d get again certificate so always carry around gift certificates give them to your staff distribute then in the course of regular
conversation you can also uh… give them away at networking events at
your chamber of commerce events you can give them away at consumer shows uh… so for instance we had a client
who had a of a sewing center and she went to a quote show right her
best prospect that the show cause eight dollars to get in the show
everybody came in the boost sally gave them an eight dollar gift certificate
and said let me buy your way into the show eight dollar uh… admission eight dollar gift certificate of course the gift certificate had to be
used in your store twenty percent of the gift certificates
given away at the quilt show were redeemed in her store her hot as prospects what the percent that’s here it’ll just great you know you can also do a partner pact
were you anselmo several other high-quality businesses all or your gift certificates put it in fact
and all of you give them up to your new customers so essentially
what you’re doing is sharing customers you could have another business endorse
your business instead they gift certificate you could
have a non-profit organization giveaway your gift certificates in when they’re members come into your store you met
their members will save a couple points with the gift certificate and then you give a percentage of the
sale back to the nonprofit cities so you can use gift certificate
so many different ways it even if you don’t have eighty and he in the bank right now a gift certificate is a wonderful too that you can use fig yet sts

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