Many times retailers rely on some form of a discount to stimulate customer interest or demand. This can be in the form of percentage off savings, sale pricing, coupons, and gift certificates.

Because most retailers use sale pricing or percentage off promotions, customers often become immune to this type of offer.

What about coupons or gift certificates?

Coupons are effective, but gift certificates are even more powerful.

Gift certificates are treated by the customer as cash. They are held onto for use in the future, while coupons are often trashed.

Gift certificates are viewed as a good deal by the customer because they are getting something for free. Everyone loves something free.

Gift certificates present the message that your store values your customers and wants to reward them with a special offer.

Gift certificates appeal to all types of customers, including high end ones, while some customers would never consider using a coupon.

Gift certificates are redeemed at a higher rate than coupons.

Bottom line: giving away free gift certificates works and should be part of your price promotion strategy.

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