I?m considering a ?token promotion? of 30% if a customer breaks a $10 or a $20 bill. 13 tokens for $10; 26 for $20. No promo for a $5. The promotion would begin simultaneously along with a substantial price increase of at least 30%.
The goal is to get customers in the habit of breaking large bills to buy tokens. In the future, I?ll reduce the promo back to 20%, then 10%, then eventually zero. So it becomes a price increase via a reduced promo.
The missing piece is how to forecast how many customers will change habits and start buying tokens in $10 and $20 increments instead of a $1 or a $5. I?d think a 30% promo is a very good incentive but I have no way to forecast customer habits.
Have you done a similar token promotion before? If so, how much of an increase did you see with the use of large bills?
The goal is to get customers in the habit of breaking large bills to buy tokens. In the future, I?ll reduce the promo back to 20%, then 10%, then eventually zero. So it becomes a price increase via a reduced promo.
The missing piece is how to forecast how many customers will change habits and start buying tokens in $10 and $20 increments instead of a $1 or a $5. I?d think a 30% promo is a very good incentive but I have no way to forecast customer habits.
Have you done a similar token promotion before? If so, how much of an increase did you see with the use of large bills?