One of our most important categories of print items are our Bounceback coupons. As the name implies, the goal of this piece is to encourage a second visit by a customer sooner than they otherwise might have returned.
Our data shows that Gold Crown (loyalty club) customers visit 3 times a year and spend an average of $15-35 each visit, depending on the season. Our busiest times of year are Christmas, Mother's Day and Valentine's Day, in that order. Easter is a "minor season" for our stores and overall visits are fewer and transactions are at that low end around $15 each. Customers likelihood of making a visit is lower at Easter than during our major seasons.
So the strategy with this card is simple. We pass this offer out to customers during our very high traffic Valentine's season and encourage the customers to make a visit in the lower-traffic Easter season. The bucket, with a value of $7.99 (COG $2.30) is a great perceived value at the "Free with a $20 purchase" level, which, as you'll recall is about $5 over the expected transactions that we have during that time frame. Historic data shows that people who redeem this card and respond to the reasonable hurdle of $20 will actually, on average, spend about $26-$27.
So if this card is successful, we can expect both increased traffic and increased transactions. We're also increasing our loyalty for minor season shopping.