Half price gift certificates, Dining Deals, super steals.
Many different names, but these programs have taken America by storm.
Radio stations all over the country have embraced this concept, a great way for them to secure “non-traditional” revenue or NTR. They offer on on-air and internet promotional package in exchange for gift certificates from area businesses. Those certificates are then sold for half price to listeners.
The idea for businesses is to draw new customers in by promoting with these kinds of program, without writing the large check for normal advertising.
As someone that ran one of these programs for 3 years, I have seen the success and the failures. Time to answer some standard questions:
Q: Do these 1/2 price gift certificate programs work?
A: Short answer…yes, but not in every case. There are a few things that determine if it works or not.
First, the type of business offering the certificates. Restaurants have traditionally been the bread and butter of the ½ price programs. Golf and hotels also work. These programs are not meant for everyone. I personally put some businesses on my program that were just wrong.
Q: Are the ½ price programs risk free for my business?
A: Absolutely not. The biggest risk is that every certificate is bought, redeemed and that you do not create return customers. Conversely worst case scenario no certificates are purchased and redeemed.
Q: As a business owner, do I maintain ultimate control over the certificates?
A: If the person implementing the program is doing their job right, then yes. Unfortunately I have personally seen many instances where the business did not get what they were promised by the radio station. For example. one business I worked with had an experience with another company that did not fulfill promises of number of certificates that were to be sold, restrictions on when they could be used; and the business owner was not allowed to proof the certificate before printing.
There are many more questions that could be addressed. If your company is interested in participating in a half price gift certificate program, there are some key things you need to contemplate before jumping in:
1. How will this benefit my company?
2. What is the best audience to reach out to? (which will be covered in another blog)
3. How can I maximize this program to increase my business.
All in all, I truly believe the Half Price gift certificate programs are beneficial for some businesses, if handled correctly and with proper preliminary investigation.
If you have any further questions, please do not hesitate to post them in the comment area,
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