If you received a Gift Certificate good for $100, you know that these are valued almost as much as the dollar amount they represent. Would you feel the same way if you get a discount coupon for the same amount? No.

I just paid $2,200 for an advanced marketing seminar. Because there was a death in my wife's family, I decided at the last minute not to go. But the Seminar prducer sent me CDs of the whole 23 hour event  plus all the workbooks. There were million dollar ideas thrown around like they were commonplace. One that hit me the most was the idea of giving away Gift Certificates to new customers and to generate referrals.

Here's why the program works:  Gift Certificates have value to the bearer. Far more than coupons.

Here's why it's so darn profitable: The Gift Certificates cost almost nothing...until the bearer uses then in your store.  In other words, there is almost no upfront cost.  And even more importantly,  The user buys (on average) two and a half times the value of the Gift Certificate on their purchase, making the new customer aquisition cost Zero.

I'm working on perfecting the program to be used in retail, it was initially used by a chain of restaurants.

The December and January issues of the Unfair Advantage Retail Newsletter covers this idea completely, including sales letters, Gift Certificate template, and market test results.