Nov 7, 2005

Gifts with purchase

HomePro offers many promotions like the one shown here. Spend 30,000 baht today and get a free fan, spend 70,000 baht get a free vacuum cleaner, or spend 300,000 and get a free washing machine.

All of these promotions, whether at HomePro or in a number of other stores, are based only on today's purchases. Store personnel explained that customers cannot accumulate purchases over time because it is too difficult and inconvenient, both for customers as well as personnel. Customers would have to save their receipts over time, while the retailer would risk seeing people create fake receipts to get a big gift like the washing machine in this picture.

Here is an opportunity for banks migrating to EMV, where the cumulative spending can be kept in the card. When it reaches the right amount, the POS terminal instructs the clerk to give the customer the gift that they are now entitled to. Promotions that span multiple store visits open the door for many new marketing opportunities that simply build on top of existing promotion techniques.

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