When is a Gift Not a Gift?

When is a gift NOT a gift?

When there are strings attached.

Over the years, my wife has enrolled me in several business’ “birthday clubs”, to get free offers linked to one’s birthday.

I’ve noticed two distinct flavors of these offers, and that I react to them quite differently.

Pure Gifts

The first kind of offer is a pure gift. Print the offer, visit the business, and get something for free. These offers range from free appetizers or desserts to free entrees. One was a gift card that covered the entrees for two.

The thinking behind these offers is to bring you into the business to celebrate a special occasion. Nobody goes out for a birthday dinner alone, right? So even if the gift covers one or two entrees, the business still makes money on drinks, appetizers, dessert and sometimes multiple extra people.

I’ve noticed that even on the occasions we’ve redeemed the free offer only, it’s usually honored graciously.

We tend to go back to those places more often. The gift has accomplished it mission. we feel good about returning to the restaurant and about recommending them to others.

Disguised Coupons

Most of the time the only difference between these offers and the coupons published in the newspaper are the addition of the words “happy birthday.” Almost universally, the offer is a free appetizer or dessert, with the purchase of one or more entrees. They often specify which section of the menu the entrees must come from. “Dine in only” is another frequent condition.

The thinking behind these offers is that the suckers, I mean customers, will be so greedy for the freebie that they’ll come in and buy whatever you tell them to rather than lose a couple of bucks worth of chips or cake.

I’ve noticed that when we do use those offers, the checks are smaller than they are when we don’t have the freebie. We order cheaper entrees, tend to skip the drinks, and forgo the course that isn’t free (either starter or dessert).

Usually the offer is honored without incident, but often must be approved by a manager who acts like the value of the ‘gift’ is coming straight out of his paycheck.

We seldom visit these places unless we have a coupon or freebie of some sort, and rarely refer others.

Over the long haul, I’m guessing that the folks that offer true gifts make out better.

Which would you rather have?

Customers who return, whether they have a freebie or not, and tell their friends? Or customers who have been trained to question motives, maximize value for dollar spent and only return when there’s a special offer, never referring their friends?

Of course, I could be wrong. It has happened a couple of times before…

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