The power of instant gratification
While on a recent expedition at my local Staples, I noticed the company was
offering a $70 rebate on a Dymo LabelWriter 400 Turbo.
It was a significant rebate, to say the least… enough, in fact, to turn my head. And even though I didn’t really need a new printer at the time, I thought I’d like to have one anyway. A store clerk happened by just as I was about to put
one in my basket so I asked him if there was a catch. He said, “No.”
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My question then was, “So when will I actually see the $70 rebate?”
He explained that it would take at least eight weeks.
I looked below the display at the floor, which was filled to overflowing with
Turbo 400 boxes. “Are you selling a lot of these things,” I asked?
“Not many,” he replied.
That didn’t surprise me at all. Who wants to pay full price for a retail item with the
hope of finally realizing a good deal in about two months? I remember holding
onto a rebate form for more than 90 days waiting for a check to come for a
high-speed router I bought several years ago. If I hadn’t kept after the company, I’m convinced I never would have received the money.
I don’t know for certain, but I imagine some companies assume that customers will
forget all about their rebates, especially if those rebates are less than $25.
George is one of the smartest drycleaners I know. When I told him my story he
said when it comes to promotions, people need instant gratification for any
promotion to actually work.
George used to keep a drawer full of dollar bills at his sales counter. Whenever
a customer would bring in an order of $20 or more, he would reach into the
drawer and hand the individual two crisp one-dollar bills.
He claimed this had far more impact than giving a discount of $2 at the register
and was way more effective than simply recording the fact that the customer
saved $2 by printing a $2 savings on the invoice (which hardly anyone notices).
In each case, the customer receives a $2 credit for the transaction, but the
experience of physically taking possession of cash is seen as a greater reward
and carries far more impact.
Sampling is a means of placing products directly into the hands of consumers.
Studies show that 70 percent of shoppers are more likely to shop at a grocery
store that offers product samples more frequently. Trader Joe's, for example,
is always giving away free things — consumers like trying something risk-free. How many times have you bought the
wine you just sampled at a tasting?
Grazing your way around Costco on a Saturday morning is a means of instant
gratification, one which, in turn, almost always gratifies the store offering
the samples.
George combines sampling with gratification in a very creative way in his
drycleaning plant. Once again, instead of offering discounts, he prefers to add
something to the sales transaction — something the customer doesn’t expect but will find valuable nonetheless.
He buys packets of laundry soap in large quantities then gives packets away at
the front counter for all orders of a certain size or greater. Customers love
it. They get something in their hands immediately upon dropping off an order.
This small reward, although totally unexpected, is very much appreciated since
almost everyone does some sort of home laundry chore sometime during the course
of a week. A packet of laundry soap is something useful and therefore valuable
and it only costs about 40 cents to spread the “Cheer.”
Lately, I have been recommending a number of ways for drycleaners to offer
instant gratification to their customers, but one in particular has very good
potential — coffee.
In January, Starbuck’s introduced its new brand of soluble coffee (non-brewed) called Via, which has since become very popular.
There is another brand of soluble coffee, which is currently being sold through
distributors on a network basis, which is much more affordable and far easier
to obtain than Via.
Unlike Via, this coffee is blended with a much sought-after health supplement,
which results in a coffee that’s actually good for you.
Because it comes in single serving packets, these coffee products are easy to
handle and can be given away free either at the retail counter or when dropping
off an order on a delivery route. As a cleaner, you get an order and in return
you offer instant gratification and goodwill by offering people their most
popular beverage. What could be easier?
The cost is very small. A packet of black coffee is only 50 cents but has a
perceived value of between $2 and $4. The latte and mocha flavors are a little
more but still cost much less than most cleaners typically pay to attract
customers. A quick look at McDonald’s marketing makes it very clear that there’s a big demand for coffee.
A cleaner's immediate benefit comes from being able to offer something (an item
in big demand) for nothing to both customers and prospects — free coffee.
This could be the easiest and most effective over-the-counter promotion ever
available to drycleaners. It involves something that’s simple, affordable and consumed by almost everyone. Plus, it doesn’t require a lot of explanation. After all, coffee is... coffee.
