Why Your Company May Want to Give Away 100’s of Gift Cards For Free

Why would Lord & Taylor give away 1000’s of dollars worth of gift cards with no conditions attached…?

Because they make a ton of money doing it!

Did you see how excited those people are in the video to receive a free $25 to buy stuff at this company?! What do people do when they receive a free gift card:

  • They talk about it.
  • They spend it. (Where only your place because it’s a gift card)
  • They spend more than they normally would.

This is an amazing strategy to build rapport and create what Robert B Cialdini calls the “reciprocal agreement”. When you offer something ‘for free’ to people they then have a tendency to want to reciprocate and give something back. Like maybe… buying lots of your company’s stuff!

To learn more about the psychology of gift cards and why they can help your business make more sales read: ‘The Definitive Guide to Gift Card Marketing‘.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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