Should Brands Use Cash Or Merch As Customer Incentives?
There are many benefits to incentivizing buyers with freebies, and here, Geek Tech Branding covers the pros and cons of cash incentives versus branded gifts.
It does not matter what industry you are in, the size of your company, when you started, or where your headquarters are. Every business is out there working towards the same goal: to gain and retain customers.
A wise way to do this is with incentives that may be included with purchases of a certain amount, mailed out during the holiday season, included in swag bags, or handed out at trade shows.
RELATED: Study Shows Popularity & Value Of Promotional Products
But how do you know which customer incentive is best: promotional products or money?
The pros of giving gifts include that they…
- Are more memorable: When customers receive a gift, they are more likely to remember the experience and associate it with your brand. This can lead to increased brand awareness and consideration in the future.
- Create a sense of obligation: When customers receive a gift, they feel a sense of obligation to reciprocate in some way. This can lead to increased sales and repeat business.
- Can help to build relationships: When you give a gift to a customer, you are showing them that you value their business and appreciate their loyalty. This can help to build stronger relationships with your customers, which can lead to increased sales and profits.
Some potential cons associated with giving gifts include that they can be…
- More expensive: This option may cost more money, depending on how much money you give and shipping costs.
- Less flexible: Customers may not always want or need the gift you give them.
The pros of giving cash include that it is…
- More flexible: Customers can use cash to buy anything they want, which gives them more control over how they use the incentive.
- Less expensive: This option usually saves the giver money, as they don’t have to pay for shipping and can hand out any amount.
However, cash as a gift is…
- Less memorable: Customers are less likely to remember the experience of receiving cash than they are the experience of receiving a gift.
- Not creating a sense of obligation: Customers do not feel a sense of obligation to reciprocate when they receive cash.
- Not the best way to build relationships: As stated above, custom-printed gifts show you care in a unique way, and customers will think of you each time they use it. Money, on the other hand, will probably just be stuck in a wallet or traded in for goods/groceries immediately.
- Impersonal: A customized present is far more special than cash.
Ultimately, the best way to decide whether to use gifts or cash as incentives for customers is to consider your specific goals and objectives. If you are looking to create a memorable experience and build stronger relationships with your customers, then gifts may be a better option. If you are looking for a more flexible and cost-effective option, then you may want to opt for the money.
Either way, incentivizing customers is a smart way to reach business goals, boost sales, increase brand loyalty, and gain repeat customers. To attract new clients and remind existing ones of their value, shop for branded gifts now at Geek Tech Branding!