How Free Certificate Promotions Work

The vast majority of consumers hold to the traditional folk wisdom that if a deal looks too good to be true, it probably is.  If they don’t discount it immediately as some sort of scam, they are at least deeply suspicious, wary of requirements, conditions, and loopholes.  That want to know “what’s the catch?”

Unfortunately, free rebate certificate promotions fall into this “too good to be true” category.  If you tell a potential customer that, for example, if they buy a car you’ll give them a certificate for $500 worth of free gas, they are instantly suspicious and on their guard.  Many will ask you what the catch is.  Consequently, if you use free gas and grocery promotions (we offer six categories plus a Combo), you have to know them backwards and forwards. You need to be able to explain to a customer, on a moment’s notice, exactly how the gas and grocery certificates work so thoroughly that they have no doubts left that the offer is indeed legitimate.  To help you in that, this article will explain in detail just exactly how free gas and grocery promotions work. 

First, you (the store owner) purchase a number of these free certificates from a redemption company.  You buy them at a greatly discounted rate, paying “pennies on the dollar”.  You then use these certificates as an incentive to get customers to buy your product or service.

The best analogy that you can use to explain the process to your customer are the mail-in rebates for items at electronics stores like Best Buy.  The customer pays full price for the item, mails in the rebate receipt, and within a few weeks the company mail back a check for the rebate amount.

To use free gas and grocery promotions, the customer must: (for this article I’m referring to Gas and Grocery but we have six categories available – Gas, Grocery, Dining, Pharmacy, Pet and Retail

1. Choose a gas station (for gas certificates) or grocery store (for grocery certificates) that they want to use their certificate with.  They can choose any store they want, but then must always use the same store for the entire certificate redemption period.

2. Activate the free gas or grocery certificate, and state which store they plan to use it at.  They can ONLY do this online.
(Your customer must have access to a computer)

3. The redemption company provides the customer a redemption coupon that is printable from the registration site (much like a mail-in rebate form) with the customer’s name, activation number, and month & year the coupon needs to be sent in on.

4. On the first day of the next month, the customer begins saving receipts of their gas and/or grocery purchases. 

5. At the end of the month, the customer mails in the redemption coupon for that month and their receipts to the redemption company. Receipts must be entered by the end of the month and mailed before the 15th of following month – see “Terms and Conditions” on actual certificates. 

6. If their receipts show they have spent at LEAST $100 on gas or groceries that month at the store they previously selected, the redemption company will mail the customer a $20 VISA gift card or make a “Direct Deposit” on their Visa card which the customer may use anywhere. ( or Option B – 24 hour turn around after approval of physical receipts)

7. They continue this process until the certificate amount is used up.  For example, if they received a certificate for $100 in free gas, they can get $20 in free gas once a month for five months.  If they get a certificate for $500 in free gas, they can get a gift card for $20 worth of gas once a month for 25 months ($20 per month x 25 months = $500.00).

That’s how it works.  The customer does have a few hoops to jump through, and a deadline each month, but nothing unreasonable.  If you explain this clearly enough to them, hopefully they’ll become convinced that your free gas or grocery promotion is legitimate.  That builds customer trust—something worth its weight in gold in a competitive marketplace.

The following is a “Industry Specific” slideshow presentation on HOW the actual system works.
This presentation is for the “Home Security” industry.
http://incentivesgroceryandgas.com/slideshow/security/starrebates

Only the Best,

Michael Goulet – TL
Direct Strategies, Inc.
“The Incentive Pros!”
http://incentivesgroceryandgas.com
http://www.incentivebasedpromotions.com/    (Star Rebates)

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