Volume 2, Number 1
January 2008 Quick
links
Special
Promotional Offer 
Company
Mpell Solutions For Sales Support: For Marketing Support: For Redemption Support:
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This Issue:
Minimizing Cost while Maximizing Perceived Value.
It’s a marketer’s dream to offer a promotion with a $200 perceived value with a cost of $2. So when does that $200 valued product cost only $2? If you’ve ever used travel promotions, you know how. If you’ve ever gotten free hardware (e.g., cell phones, satellite radios, digital cable boxes, home alarms) that require an annual subscription, then you know how too.
The reality is that there are no free lunches. Subsidized yes, Free no. Any promotional product which requires a subsequent financial commitment will be extremely low cost relative to the value. The travel industry invented this concept with “Free Companion Airfare” (when you buy the 1st ticket at full price!). Back to the dream, which is reality. The fact is that high perceived value products increase response rates better than low perceived value products, no matter what strings are attached. So you can spend $2 on your next promotion in one of two ways: A. Offer a cup of Starbucks® coffee OR B. Offer a certificate for a free cell phone AND a $50 gift card to Starbucks®. For our January special, we are offering certificates for a free cell phone PLUS a $50 Starbucks Gift Card.
New Year’s Resolution Programs! Every business does two things every January 1… Resolve to get more customers and resolve to get better customers. If you haven’t made your resolution, the time is now.
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