How does a free $5 gift card to your favorite restaurant sound? It sounds great, right? Well, how does $10 sound instead? It sounds even better.
Many businesses, especially restaurants, are hesitant to offer customers free discounts. Why? Because they’re afraid people will spend either the same amount or just above the discount.
Here at Triadex Card Mailers, time and time again, this theory has been disproved. We have found that by increasing a $5 free gift card to $10, the business actually makes more money. People are more likely to “up-spend” on appetizers, desserts, drinks, and more expensive meals when given larger discounts.
Recently, one of our clients saw a 12% redemption rate on their plastic card mailer (most direct mail marketing campaigns get around a ½%). This Italian restaurant saw a $35 average “spend” per table on top of the free $10 discount they offered customers! Even though the restaurant gave away more free money, they made more profit.
When a business offers a free $10 plastic gift card over a $5 gift card, the average check is 17% higher than the discount! For more information about Triadex Card Mailers, click here. Or, click here for a free quote now!