How To Unwrap Birthday Deals

Deal of the Day: Shoppers may receive more birthday offers as retailers expand tracking.

Shoppers may soon get more birthday presents from retailers than their relatives.

Free gifts and birthday discounts are one of the oldest reward program benefits, and many companies offer them, says Kelly Hlavinka, a managing partner at research firm Colloquy, which tracks loyalty programs. But experts say deals have expanded in recent months to incorporate more high-end stores -- Cole Haan now sends a 25% off coupon for use during the recipient's birthday month -- as well as non-retail businesses. In February, Discover started offering select cardholders 2% cash back on up to $500 in purchases during their birthday month, double its year-round standard 1% reward. Crested Butte Mountain Resort in Colorado will also let travelers ski free on their birthday during this ski season.

The growing interest in wishing consumers a happy birthday is part of a broader attempt to make the idea of tracking shopping behavior more palatable, says Miro Copic, a marketing professor at San Diego State University and principal at BottomLine Marketing consulting firm. People who might otherwise be reluctant to sign up for an email list, "like" a retailer on Facebook or interact with them on Twitter are often more willing to hand over that personal information for a birthday gift. "A birthday is a great way to say something and deliver a message that's a little more personal," he says. "It adds a little humanity to the marketing."

Birthday offers are often better than a store's typical promotion, and can be quite valuable, Copic says. Aveda, for example, offers a choice of several store items, worth as much as $25. Better yet, many are stackable with other coupons and deals -- a real boon for November and December celebrants who could use a little extra savings on their holiday shopping list. That 25% off Cole Haan deal works on some sale and clearance items, too.

But these offers aren't without their downsides. "Signing up means you'll get promotional emails all the time," says Ryan Eubanks, founder of deal site HeyItsFree.net. They are a marketing tool, after all. Experts recommend signing up with a separate email address, or resisting the impulse for that free ice cream cone or extra discount if the store or business isn't one you want to hear from on a regular basis. Receiving regular emailed promotions reinforces one's desire to shop at that business, Copic says.

Offers are also subject to change at any time. One year's deal may be completely different than what's on hand the following year. Restaurants have started shifting away from free meals, to offer less-expensive appetizers or desserts, Eubanks says. A Discover spokeswoman says the issuer's 2011 birthday offer is just one of several it has tested in recent years, and different cardmembers may see other offers in 2012.

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