Adding a temporary free balance drives the customer into Loss Aversion behavior. People endowed with unexpected gains usually try very hard not to lose them. In the case of a sales promotion, this means they are very likely to make a purchase due to saving the balance for themselves before it’s gone.
- You can offer the free balance in multiple ways – gift card, loyalty points, custom currency, rechargeable gift or credit card issued by your store.
- Think of your budget and set the minimum order value, unless you want your customers with $30 gift cards placing $30 orders (this may bring a lot of one-time customers who will never come back and simply burn your budget).
- Set up fraud-prevention rules like allowing the gift card to be cashed out only by the original gift card holder, that will prevent people from swapping or reselling gift cards.
- Limit the use to once per customer or once per customer per year if you want to protect your budget and reach more customers.
- You can gift the free balance for a special occasion (holidays, birthdays, anniversaries) or based on customer actions (their second, third order, re-activation campaign, abandoned basket). Think of your goals with this campaign and base your trigger on that.