New Marketing Incentive Gives People Gas

What do Chase, Callaway Golf, Big Bear Campground, Dick's Sporting Goods and the New Jersey Department of Transportation all have in common? They've got gas.

Ever since gasoline started approaching the $4 per gallon mark, people started wooing customers with the next big incentive. Free gasoline is everywhere, as long as you spend money with them.

What happened to the good ol' "20% Off Sale" or the "Buy One, Get One Free" offers. And where are those perks that banks offer like free tool kits, toasters and trips to the Bahamas? Oh, they're still around, but they seem to have lost their luster.

Fear Marketing
Now businesses are playing into consumers' fear and frustration over sky-rocketing gas prices by simply substituting discounts and gifts for "free" gas cards or rebates. Other businesses are building their prospect lists by offering gas cards in sweepstakes drawings. Just "Google" the term "Free Gas" and you'll find thousands of offers and chances to win.

While everyone is feeling the pinch of escalating fuel prices, gas in the United States is still below many other countries. If gas hits $5 per gallon, a $25 gas card will get me five gallons, or about 125 miles down the road. But, how much did I have to spend get that $25 gas card? I just saw a television commercial from a vinyl siding company that will give you a $25 gas card just for calling and "inviting" a representative into your home. So, you spend two hours with a pushy salesman that talks you into $10,000 worth of new siding. For what? $25 worth of gas?

Customers or Samplers?
Should your business ride the Free Gas wave? Well, that depends on what type of customer you want to attract. While $4.19 per gallon is an annoyance, I, like many, haven't reached the threshold that would cause me to spend more money on products I really don't need just to get a few gallons of "free" gas. People who jump at the chance to earn free gas may be feeling the economic pinch and may not have the expendable income to purchase your products. Are they truly going to be long-term, loyal customers or are they merely enjoying the "free samples" with no intention to buy?

Focus On Quality and Reward Loyalty
My suggestion? Focus on providing the highest quality products and services at reasonable prices with the best customer services. No, it's not a new concept. But, in the long run, people will still go out of their way if they perceive they are receiving value from your business.

One pet peeve I have with special offers, and my cell phone company Verizon Wireless is the perfect example, is that they extend rewards to new customers and neglect long-term, loyal customers. I pay them over $300 per month only to be told by some of the rudest customer service people that I can't upgrade my phone or receive the same "special discounts" as new customers. They aren't loyal to me, so when it's time to renew my contract, I will not be loyal to Verizon Wireless.(Sorry, I will step off my soap box now.)

Again, gift cards (such as Visa) can be used for any purpose including gasoline. And give them to your loyal customers - perhaps for referring new business or making a large purchase. Surprise them with the card. I was ecstatic when I received a $100 gift card in the mail to an upscale restaurant when I referred a co-worker to Matt Kennedy at Tom Wood Volkswagen in Indianapolis. They bought a car from him and he thanked me for the referral.

Like me, maybe your client isn't all that interested in free gas. Maybe it's a single mom that needs to buy clothes for her child. Or a gift card may come in handy for a parent to buy school supplies or for someone to take their spouse out for a celebration dinner. By showing your loyalty to your best customers, you will build long-term relationships and gain quality referrals from their friends, family, neighbors and co-workers.

A Passing Fad?
We've enjoyed low gas prices for many years and we are just catching up to the rest of the world. And, while we can debate the merits of drilling for oil on our own soil, prices aren't going to fall below $3.00 or even $4.00 again. We'll learn to adjust and the "Free Gas" marketing fad will disappear just like Green Stamps and free toasters.

If you stay the course with quality and service and you build loyalty with your best customers, you won't need to rely on gimmicks like "Free Gas".

To learn how BTK & Associates can help you market your business based on quality and service and establish a loyalty rewards program, visit www.btkmarketing.com or email brian@btkmarketing.com.