WOODEN NICKELS DATE back to at least the 1930s. Local banks used them during shortages of national currency. The Chicago World’s Fair introduced wooden nickels as souvenirs. And merchants have given them as tokens redeemable for specific products or cash value for merchandise. Lindsay and John Webb do the latter at Just for Paws, their grooming salon and boutique in St. Charles, IL.
THE IDEA
Create a better “coupon.” Lindsay says, “We wanted to give our customers a value, but we didn’t want to give it as a coupon that would be underused.”
They hit upon the idea of a wooden nickel with a $5 cash value for merchandise, no minimum purchase required. It appealed to the business owners on multiple levels.
“There’s the nostalgia factor, which goes along with our vibe,” she says of the boutique and salon’s rustic design and old-fashioned approach to customer service. “We felt that tapping into that nostalgia, creating an emotional connection, would get the customer excited to use the nickel.”
Lindsay and John thought the tokens would resonate with their customer base, those in their 40s and 50s who may remember when their use was more common, but also interest millennials who have never seen them before.
And they counted on eco-conscious shoppers of all ages to appreciate their reusability, which also provides savings to Just for Paws.
THE EXECUTION
Order online, mail to customers. The owners used NationalPen.com to print their logo on the front and “Same as Cash $5 Coin” on back. They ordered 500 wooden nickels in January at 20 cents each and began sending them to first-time grooming clients with a handwritten note. Lindsay also keeps a few on her.
“For when I’m out and about and meet a potential client,” she explains, adding that the token’s weight and shape makes much more of an impact than a business card with coupon.
Just for Paws has given out 125 wooden nickels in the grooming salon, and another 25 through various promotions. The cash value approach allows them to be used for anything, from pushing sales of a particular food to meeting a sales quota.
“Super-simple, creative and effective,” Lindsay says of the tokens, which employees track redemption of through 123Pet Software.
THE RESULTS
40 percent redemption rate. John reports that 60 wooden nickels were redeemed in the first three months.
“We don’t track them by specific promotion, but we can see when they are being used per transaction. So far, every sale has exceeded the $5 token amount. We have not had anyone use the $5 token without spending additional money in our boutique,” he says. “The sales in our boutique continue to climb month after month.”