Cash incentives vs. merchandise

Contributor to The Business Report Serving South King County Judy Dunn interviewed me for her marketing strategy article entitled, “Want to romance your customers? Give ’em gas.”

Her point? In the cash incentives versus merchandise battle, merchandise can work nicely to further your marketing objectives. (Click the article to enlarge.)

Cash incentives versus merchandise

Here’s an excerpt from the article:

In the customer’s eyes, what’s the difference between offering a gas card and cash off the product price?

“There is very little romance to cash,” said Seattle marketing strategist Joe Hage. “But the high price of gas is something everyone can relate to. Along comes a promotion that will solve one of your biggest headaches. It’s sure to grab your attention.”

Does the business benefit too?

“A motivator for the retailer,” Hage said, “is slippage. When you give away cash, you give away 100 percent of the value. With a gift card, some percentage will never be redeemed. Often times, the slippage is known in advance and baked into the price paid for the cards. The savings can be material.”

Speak Your Mind

*

75 − 74 =