Giving Money Away Strategy
credit: Matt McGee
Giving out discount coupons are so passe. Now to promote spending and prop up the economy, giving out cash is another strategy to increase your customer base and push them to spend more. We see this from the Taiwan government giving out shopping vouchers that are equal to cash to its citizens to promote consumer spending. Economists believes that Asia should spend to push the economy out of the gloom.
I’m all for spending and stimulating the economy. And when I drop by the shopping centres in Singapore, the empty walkways / footpaths plus really great discounts make shopping such a great experience. But the truth is – now the fight is for consumers to open their wallets when in reality – most are keeping it very close to their pockets. Job losses, lack of jobs available – these are worrying times that do not encourage spending.
That was until I came across the Equatorial Hotel advertisement.
I love this great marketing strategy by a Malaysian hotel. It is really a fantastic idea - I’m thinking of packing my bags to go over this weekend.
For each night you spend there you’ll get RM88 (SGD 36) to spend at their 7 F&B outlets. If you are staying alone or with another person – this means that your meals are free for the duration of your stay. I’m not sure whether it is possible for me alone to spend RM88 per day in meals – but for couples I think it is just enough – perhaps just need to top up a bit more.
Appears in The Straits Times Life(9 March 2009)
Plus even if you don’t spend the RM88 – 50% of what’s left over is refunded back to you upon checkout.
Nah, I rather spend the money fully – and maybe a bit more.
I think giving pure hard cash is better but if you are a hotel looking to make sure your guests spend their money at your hotel – then this ensures they do so.
A competing hotel - located near shopping centres can easily trump this offer. If you are looking to push up your room occupation rate, do a promotion with your next-door shopping centre neighbour by giving out shopping vouchers to cooperating retail outlets. Why not?
It is all about the perception of value – Value Perceived is Value Achieved.
Host-beneficiary relationships are hard to build though but win-win situations should always be explored. In such an economy the most innovative ideas will triumph and not the largest marketing budgets.
P.S I do think the advertisement can be improved upon. A headline like “We Are Giving Money Away!” will draw my eyes – the location of the ad at the bottom also doesn’t help much.