The Daily Stat from Harvard Business Review

June 23, 2015 Sometimes a Small Gift of Appreciation Is a Bad Idea Companies often thank their loyal customers with small discounts or gifts, but if the amount is so small that it fails to meet consumers’ expectations it can backfire, says a team led by Peggy J. Liu, a doctoral student at Duke University. Managers shouldn’t underestimate the value of a simple verbal acknowledgment of appreciation. As an example of a small gift, the researchers point out that Microsoft sent loyal Xbox customers birthday e-cards with gifts of 20 Microsoft points – worth 25 cents. SOURCE: Should Firms Use Small Financial Benefits to Express Appreciation to Consumers? Understanding and Avoiding Trivialization Effects

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