The Harvard Business School recently posted a working paper outlining how customers that receive emailed grocery coupons will actually spend more money on groceries that they didn’t intend to buy. They go with a budget and then buy items that they normally wouldn’t buy otherwise.
Read it here: Mental Accounting and Small Windfalls: Evidence from an Online Grocer
We’ve seen this same play on human psychology work for homebuilders. ‘Buy today and get $20,000 in free options.’
How effective would this type of campaign be if paired with a personal referral? What if you received an email from your friend, John Smith, that said:
Sally,
I absolutely loved my homebuilding experience with Portman Homes. I know that you and Jim have talked about building a new home and I think you should consider them. If you are interested see the note below.—
As a valued friend of John Smith you are entitled to $20,000 in free options on your next Portman Home. Simply bring in this referral code: #JSMITH02 and begin building your dream home today!
—Sincerely,
John
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