Yesterday I talked about reward programs in general. Today I want to break down what I think is one of the most ingenious reward programs I have ever seen. Gymboree Gymbucks.
For those who don’t know Gymboree is a place where you buy kids clothes and misc stuff. For every $50 you spend you earn $25 in gymbucks. Amazing huh you earn $25 in FREE MONEY for ever $50 you spend. I can’t tell you how many times my wife has bough 5 or 10 more dollars worth of stuff to get another $25 in gymbucks. For instance she has $42.50 worth of kids clothes. If lady at the counter reminds her that if she spends only another $7.50 on socks or sunglasses or anyone of the extremely overpriced things you don’t need you can get $25.00 in FREE MONEY TO SPEND YEHAW NO BRAINER!!!!!!! I can’t tell you how many times I have watched my wife look around Gymboree to find things to buy to cross the $50 threshold.
The fine print
You can only redeem the gymbucks a couple days out of the year and the days are printed on your reciept. Usually they are about 30-60 days out. My wife has all these days marked on her calendar. But only some of the gymbucks can be used on certain days.
Redeeming the gymbucks works the same way as getting them. You have to spend $50 to use a $25 coupon. Same logic applies every tries to buy more junk to round up to the next $50 increment so they can use their “free” money.
The best part is like everyone has the same days to use it. So the likely hood you can get the style and size of the item you want is like nil.
I could be off my rocker or maybe its just that being a marketer for a living has made me a bit cynical but I think they pull all the popular and low markup merchandise off the shelves during the days you can claim your gymbucks. Honestly it never seems like they have anything in stock and we have gone pretty early in the morning.
So your left with buying $50 of stuff that they could not sell (probably phased out last years line) to get your hard earned $25
in free spending.
The most amazing part… the stores are standing room only during the gymbuck days. What an amazing marketing system to move merchandise.
About the author...
Jeremy Schoemaker – who has written 2415 posts on ShoeMoney.com.
Hi I am Jeremy Schoemaker and ShoeMoney.com is my blog. 99% of the post here are done by me but you will see others occasionally make guest posts. This blog is fun to write but for my day job I run several online companies.
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{ 100 comments… read them below or add one }
I think the fine print is a big deal with some of these programs. The better they sound, the more fine printed limitations there seems to be.
wow, what an ingenius system indeed.
Definitely interesting way to get rid of outdated stock.
Interesting. And I do agree. If you’re familiar with Kohl’s stores, they do this same thing with the “Kohl’s cash.” It’s interesting to see how the mind of a consumer works with offerings like this.
I cannot begin to tell you have many countless thousands of dollars have turned through my bank account for my wife buying Gymboree clothing and the “gymbucks” gimmicks.
Ha ha… you and me both. She loves it when the Gymboree bucks are good for purchases at their online store. We have a Gymboree outlet close too, so our little girl seems to have an endless supply of clothes from this place. It really is a great marketing tool.
My wife mentioned a “scheme” at Payless shoe store that she has often had to refrain from “taking advantage”. It is called “BOGO” Buy one Get one HALF off!
She was recently buying my 3-yo daughter a pair of $3 sandals. The cashier reminded her of the offer my wife thought about it. Do I want to go back and spent 5-10 minutes looking for another pair of $3-10 shoes, just to get these sandals for $1.50? Instead of spending $3, she would be spending $4.50-$11.50.
Gotta use yer brains people!
I hear you. It wouldn’t hurt to engage the sales person pitching at you and ask more about what they’re offering.
What a great idea. Get money, and get the shit that doesn’t sell off the shelves
EPIC!
Between Kohl’s Cash ($10 for every $50 spent periodically), 15-30% off coupons that get sent to us once per month, and stacked 60-80% off clearance racks, smart folks like us fill up our closets and Kohl’s moves a ton of leftover merchandise.
Like everything in life, it all boils down to one thing… Is the juice worth the squeeze?
Great idea. However, it will probably take a couple of months to find out if this marketing ploy will survive the ever-changing business playing field.
My personal experience with the Gymboree rewards program was very different and worth it. When my chidldren were small only 16 months apart I used this program all the time to buy them Gymboree clothes. The bottom line I ended up with some of the best quality children’s clothing in the market for the price of Target. They last, they dont fade and I passed them down to my younger daughter. Then when we were done I consigned them and with the resale value of Gymboree clothing renowned for its quality I would get half my money back. It took a bit of effort and planning but when you want your kids to be the cutest kids in the preschool on a tight budget its worth it. Tell your wife to consign the clothes when she is done if she does’nt already and get even more value. All the Gymbucks deals work online too so no need to go to the store and line up just get up at 1.00 a.m. and log on!!!
Hmmm. Sounds like a good idea. I could use a trick like that moving forward.
Same here. I’d rate this strategy 5 stars myself. Looking forward to see how this whole setup will fare in the next few weeks.
My friend shops at Gymboree for her 6-year old daughter’s clothes. I remember one time she mentioned something about Gymboree Gymbucks. She says she was able to buy a cute dress using it.
If I need stuff worth $50 then at least I’m assured of freebies at some future time. Up to me to take advantage of it. I could save money with that scheme.
When running my e-commerce business, we did things like this. You would be amazed to see how everyone reacts. People will glady pull out their wallet to pay more in order to get rewards. Most of the time, they never would use the rewards in time, so as a business owner, it was great.
I think that’s where most stores’ profit come from. A good number of people fail to enjoy their rewards. Such a waste of hard-earned money.
Where can you find a similar deal for adult clothes? Imagine how awesome it would be getting lots of bucks back after shopping at Armani.
Kohl’s
A nice ploy to influence costumer’s buying behavior.
Twenty-five bucks is twenty-five bucks. All that matters is it keeps bringing in loyal patrons. That’s what marketing is all about in my book.
It could also be a store’s way of building a solid base of loyal customers. These customers do tend to return if only to purchase items off their rewards points.
And yet many people bite. Whatever works.
I’m one of those people you’re referring to. I have a lot of unused points cards. Most of them I forgot about soon after I got them.
If you don’t want to buy more Gymboree clothes, cash in your Gymbucks for 1/3 of the face value on eBay. So you can sell your $25 Gymbucks coupon for around $8.
Enjoy your cash!
~ Michelle
http://www.watcheditem.com/search/0/All+Categories/0/desc/watchers/js/1/keywords/gymbucks.html
What that a CPA program? Some amazon or clickbank?
I stumbled upon a cool resource page on CPA. Why not check it out now? http://www.submityourarticle.com/articles/Rey-Berona-5872/cpa-marketing-63871.php
I had some similar experiences in different stores. The offers are all variations of that but I can’t seem to pass up the promise of “amazing” rewards.
I find buying advices for consumers helpful http://www.consumerworld.org/pages/buyadv.htm. For future shopping reference, redeeming rewards or otherwise.
Anything that’s offered for “free” is bound to attract customers. It’s part of a customer’s mindset, I guess.
It’s best to carefully consider the pros and cons of availing such programs before making the decision. Failing to do so gets you a marketing system that you don’t understand much about. Smart shopping saves you more money than randomly signing up for marketing gimmicks.
First when i saw this post on my RSS, i thought shoe is giving away some free GYM rewards
. My bad! I never was interested in rewards program unless they really impress me. I must really admire their Sweeet Marketing techniques; As a matter of fact, 95% of the population in USA dont want to let go of FREE money. But the question is, is the money really FREE? 
Redeeming all kinds of rewards is some people’s idea of fun. The real challenge there is finding something worth buying. Part of the reward maybe is to actually find the good stuff drowned in old stocks.
It’s a great marketing plan. The idea of getting $25 more when you spend another $7.50 probably triggers the mind to calculate that it’s a 300% return. Who wouldn’t love a 300% off sale!
I’ve seen my mom avail all kinds of loyalty programs since I was little. I’d say that what I’ve observed and experienced over the years observing her has soured me to it. I just don’t think it’s not worth all the extra cash and all the effort spent.
Isn’t that a great reason to be thankful? A savvy mother like yours is one in a million!
As a tenderfoot marketer, I have been a bit doubtful, too, of fine print and the potential brouhaha that thay can cause. Nonetheless, earning REAL bucks for less than the price of a lobster dinner is definitely a great deal to me.
There seems to be no dearth of creative marketing schemes created to entice buyers like myself to spend more. And even as you think you’re done resisting different offerings, you end up with a cashier that would spend x number of minutes convincing you to spend more. Frankly, I often find all that tedious.
Store cashier counters, where more pitching happens.
Kaching! That’s the sound of Gymboree’s cash register all day long.
Well, if the customers are frequent buyers anyway that $25 free is not a bad deal at all. At the end of the day, it’s their choice.
I even found an instructional how to use Gym Bucks! These things will soon take over the marketing scene. ROFL http://www.ehow.com/how_2092512_use-gymbucks-buy-gymboree-clothing.html
I just don’t know if stores offering similar promos are giving money away or just have a brilliant marketing strategy that we have to decipher. What do you think, Shoe?
Here’s the whole deal right here. Why not give it a peek? http://www.gymboree.com/our_company/popup_content.jsp?CONTENT%3C%3Ecnt_id=10134198677420511&FOLDER%3C%3Efolder_id=2534374303003787&ASSORTMENT%3C%3East_id=1408474395917465&bmUID=1282262775852
Over the years, I’ve learned that these marketing programs ruin my budget. But I still avail of those which I personally find useful. I often get lucky in picking some really good stuff.
My mom’s a Gymboree fan herself. I often think their products are overpriced but earning 25 bucks after spending twice the amount isn’t that bad, is it?
Now I have a new favorite store to shop for my kids’ clothes. Thanks for the heads up, Shoe.
I’ve always believed that to earn money, you’ve got to spend some cash, too. That’s what Gymboree is doing. What makes this setup awesome is that you’re actually getting money back. How about applying a similar idea when you release Shoemoney System 3.0, Jeremy? LOL
That would be the day! Nice idea, honey!
You have an interesting way of presenting your take on this particular rewards program.
Looking forward to the next entries. I assume you still have some marketing systems to dissect?
I’ve been an avid fan of Shoe’s fan for a couple of years and I guess he has more aces up his sleeve. Just keep coming back daily to see the magic.
Thanks for delivering, Jeremy. I’ve been looking forward to read this post ever since you gave an announcement yesterday. Best wishes from Atlanta.
As a consumer, I always review the fine print whenever I’m shopping. Gotta read those babies or else you’re blowing all of your budget on some half-assed rewards program that’s really a scam.
$25? That’s enough for a round of drinks and a Southern Omelet at Denny’s! Maybe I’ll head out to the Gymboree shop at the Fifth and check out what the hullabaloo is all about.
Does your wife share your view on this, Jeremy? My wife says rewards systems work just fine for her. Go figure.
My wife of 38 years is a big fan of all these crazy loyalty programs, advantage points, rewards and so on. She does bring home some good stuff once in a while. My stand on it, as long as I’m not dragged around hunting the best price-offs then I’m fine with it.
Quite a bit tough to apply to online marketing though. Got other nice strategies for us beginners, Jeremy?
That’s why I don’t go with my wife when she’s on one of her shopping sprees. I figured that it’s better if I don’t know about the deals she signs up for.
Is it just me or does anyone else here think that this redemption thing is just full of fluff? Spend $50 to get the half back?
I am all for free stuff but free money? Now you’re talking, baby!
I wonder if this program will catch waves and gets replicated by other stores? What’s your two cents’ worth about this, Jeremy?
Pretty much like getting more mileage to get a free ride. Bottom line, you need to spend amounts of money before you can enjoy the freebie that chances are you wouldn’t be able to use anyway.
There’s a fine line between a high-cost redemption program and getting broke all the way. I just hope whoever came up with this idea is aware of this.
Gimmicks like that must have worked for many people since they keep signing up for them anyway.
As a savvy mom, I always check if spending a few bucks extra is really worth it. This whole $25 get-your-money-back deal is somewhat hazy to me, to tell you the truth. For all we know, they’re earning quadruple for every 10 bucks we shell out.
Why don’t they make it a price-off promo instead of a redemption deal? (Well, I do think that even the strangest ideas work and this here takes the cake.)
They’ll probably do that. That is, if they think they’ll gain more from it than those redemption deals they’re giving out.
Still, some of us could benefit from it. I could use one right now.
A perfectly planned win-win marketing strategy. Props to Gymboree for the excellent job.
I miss those days when shopping was more straightforward. It’s rare when I come across a cashier that doesn’t attempt to talk me into some promo or another.
No way around it but smile and wait for them to finish their pitch. Part of their job. Some counter ladies do make fine sales people.
Nice article! Perspectives are good. I understand a bit better how some marketing strategies work.
It all comes down to the sales pitch. If sales personnel can’t give a superb presentation, the whole thing will definitely just spoil no matter how amazing a rewards program is.
Sweet post, Shoe. Looking forward to get a peek at tomorrow’s T-Shirt Friday!
I must admit the offer does appear too good to pass up. Who knows, I might buy something great with it.
I used my Gymbucks to pick some gifts for my nieces and nephews. I didn’t have problems finding what I need.
What’s your 2 cents on advantage cards or club cards? Are they any good?
True, that’s one way of moving merchandise. My sister, who thrives on shopping deals, says the key is to quickly find the excellent items out there before the rest of the crowd get to them.
I didn’t put much thought about why, most of the time, I avail of shops’ offerings. This post made me think about that now.
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To some people sales are savings. E.g. How much did that cost? Well, it was on sale for 10% off.
It almost seems like they think they made money.
Paul
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Sounds like a good deal for the consumer, and as long as the markups are high enough it would be a good deal for the retailer as well.
I know the recent Groupon for Gap caught a lot of attention because most analysts feel it was not a good deal for the retailer to offer a half off coupon. I think any way to get new or existing customers into your store in this economic environment is a good thing. Market share is going to be divided up during times like this and those that end up with the most market share will be the most profitable during the recover as consumers continue in their same habits.
Yes – this is really clever marketing. It happens all around the world.
People love bargains and rewards and I have a wallet full of reward cards. I like the ones that allow you if you spend so much you can get cheaper gas.
These savings all add up.
right now Gymboree.com has 30% off sale…use code GYMCIRCLE at checkout
You got to admit this is one hell of a money making idea! Spend more than you intended and only redeem your vouchers on certain days of the year. Brilliant.
I was waiting for this article after you left us with the cliff hanger. I knew it was going to be good, but I had no idea it was going to be that good. I’m sitting here spinning my wheels trying to figure out how to icorporate this idea in my businessess.
Good Stuff as usual, short, to the point, and makes you say. “Hmmmm”.
What a great marketing idea. Some people really get “hooked” and will spend that bit extra to get their reward. It makes sense if you are a regular shopper and can get something back.
Honestly, I can’t stand coupons…for problems similar to what you mention. It takes time to clip them, or money to accumulate them as in your post above, and it is a hassle to redeem them…are they out of date, is the product there, did you remember to bring the coupon with you, are there special qualifications?…etc. I decided at one point that coupons were for certain people who had the stamina to deal with them, and that was not me. It does show, though, how the promise of free money and good deals brings the people in.
Interesting place for kid clothes. Should try it and buy something for my daughter
Nice…lead them in and pull a bait and switch.
I used to give in to sales pitches made by the clerks but after sometime I’ve learned not to go into impulse buying just to avail whatever discount or promo the store is having.
We used to get visits from the local mall theater’s salespeople who sold annual coupon booklets, where you can avail several free movie tickets a month but it had to be used during regular days (so weekends and holidays are out) and is not applicable for last full shows. Mom used to buy them but she stopped after realizing that the tickets/coupons were wasted because everyone was too busy with school and work during the weekdays.
My wife keep signing my sun to classes just to get these great coupons
They have a great gimmick going, and people feed into it, so they are definitely doing something right. Rewards cards are a huge draw these days. People seem to think they are getting a deal of sorts, little do they really realize, they are spending more than intended to get it.
At the start of story it sounded cool and I was going to start a petition in the UK to bring Gymbucks to the UK.
The small print can be a stinger and it sounds like they have a fantastic marketing tool. I do wonder how long this can be kept up, though.
I’d appreciate it if you could up date this if your suspicions are correct.
If our wife is like mine anything that ends with a sale shes buying it,
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You definitely know what youre talking about, why waste your intelligence on just posting videos to your weblog when you could be giving us something informative to read?
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