One of the interesting social science experiments in Elizabeth Dunn and Michael Norton’s Happy Money has to do with expiration dates.  They discovered that consumers logically said they would prefer a gift certificate to a local pastry shop with a two month expiration date rather than a three week deadline. But in reality, only 6% of the consumers used the two month certificate, whereas 31% redeemed the one with a three week expiration.

Their conclusion is that the limited time window encouraged people to seize the opportunity, because it seemed more like a treat.  And while it is best not to have gift certificates or cards that expire, stores that use coupons and other promotions would do well to take this idea into consideration.  Creating a sense of urgency almost always results is a higher consumer response — within reason. You want to give customers enough time to fit a visit to your store into their busy schedules.

“Make It a Treat” is one of the five principles for getting more enjoyment out of your money discussed in the Dunn and Norton’s  book, along with “Buy Experiences,” “Buy Time”, “Pay Now, Consume Later” and “Invest in Others.”  There are other lessons here for retailers. For example, how can we incorporate experiences into what we offer, instead of just goods? Can your shop do classes and demonstrations, or lead a trip? Do you write a blog or newsletter that offers information your customers are interested in?

Buying time is another category you should give some thought.  Perhaps you offer a product or service that will make life easier for your customers, or are a one-stop shop for more than one category of goods.  An example of a way that we help our customers save time is by selling greeting cards and offering gift wrapping service so that our customers can head right to the wedding after selecting a present.

The other lesson from Happy Money that is worth considering is the importance of investing in others. They use this phrase rather than “donating to charity,” because their research shows that personal involvement makes the act of giving more pleasurable.   This is a reminder to target our business giving to causes we feel strongly about — but I also like to think that  our customers get a “happy” boost from knowing that shopping locally is a way that they are investing in the health of their own community.

Happy Retailing,

Carol “Orange” Schroeder