I don’t know about you but I do love a bargain. Somehow that meal always tastes so much sweeter when it comes with a free bottle of wine or was on a two for one deal. But, offers are so much more than that. In the marketing world, offers are a way to encourage potential new clients to give you a go, to increase existing customer loyalty or to increase footfall at times when traditionally business is slow.
I have no doubt, a few of you out there are thinking ‘Why would I slash my prices to sell more? Surely that’s a false economy?’ Well yes, and no…
Offers can be one of the fastest routes to a new customer, when used correctly. And that’s where business owners go wrong. If you’re a restaurant and traditionally Mondays are dead, this is the perfect time for an offer. You’re open and paying for your staff; surely it’s better to have people paying for meals, if at a reduced rate, than it is to be empty all night. The costs to you are the same but the nights takings are dramatically different.
A company in the States sold high value, custom built guitars. The trouble was, they weren’t selling enough of them and their target market was virtually invisible. They were struggling to find new customers.
They then hit on a great idea. Guitarists constantly buy plectrums….
They decided to become the cheapest supplier of plectrums across America, attracting guitarists, rich and poor, throughout the States. Every person that purchased plectrums were shown examples of their beautiful custom built guitars (and the prices) and given a chance to register to receive more information about them.
Now the company had loads of new potential customers to market to who they already had a relationship with! The price of a plectrum, about 50 cents. The price of a custom built guitars, $1000s.
The trick with offers is to find something that is low cost to you but high value to your customers, that way you’re not breaking the bank. You also need to understand what you’re trying to achieve with the offer before crafting it.
Are you trying to increase your average sale value? Then making an offer just before payment is ideal.
Are you trying to get clients to trial a new product? Look at your customer list, find the clients that would have a need for that product and send them a loyalty offer.
Or, can you do what the guitar company did? Find a product that compliments the product you want to push and make that offer irresistible!
Crafting the perfect offer takes a little time but get it right and it can make a big difference to your business.
Have a great day!
PS If you’re still struggling with the ideas of offers when it comes to your business, maybe our free marketing critique (usually reserved for thebestof members) is the answer to your problems.