A successful marketing campaign will be meticulously crafted from beginning through end to maximize conversions. The core foundation of creating a successful campaign begins with establishing an irresistible offer. Whether a lead magnet, tripwire or standard promotion is used, incentive’s will determine whether a prospect turns into a client. Understanding that not all promotions are created equal is paramount in crafting the perfect offer for your business.
The quid-pro-quo of marketing, a lead magnet requires the business provides a freebie in exchange for an opt-in or participation from the prospective customer. A few examples of irresistible lead magnets can include free product, a significant discount, product trial or giveaway.
- Tony’s Pizza gives a voucher for an absolutely free personal pizza to new residents in the city.
- AAA+ Automotive provides absolutely free basic diagnostic via an OBD Scanner to get people in his shop.
- Grandview Timeshares provides a $100 restaurant gift card in exchange for participating in a presentation.
- Sarah’s Insurance gives all prospects a $10.00 gas card for getting an insurance quote through her agency.
Creating a low barrier entry point for prospective clients is a great way to let consumers test a company’s products or services without having to commit to a large purchase. A tripwire aims to capture a greater amount of new customers by casting a wider net and luring them in with a low-cost offering. An example of this might be an HVAC business offering a cleaning and inspection for $49.00. This provides a service which may not be incredibly lucrative but allows the company to do business with the homeowner. As additional services are needed it becomes easier to sell the client higher priced items or services based on the established business relationship.
Examples of great tripwires include:
- Perfect Auto & Mechanic is offering a $30.00 oil change and multi-point inspection where they hope to identify additional repair needs.
- A’s Pizza & Brewery sells $2.00 slices during lunchtime to help increase familiarity with their dinner menu and ideally bring the whole family.
- West Park Valley Dealership is offering a $300.00 ‘Sell Your Car’ detailing package which gets your vehicle to a pristine state. Their emphasis is to get people to test drive and buy vehicles since they know the detailing customers are looking to sell their vehicle.
A promotion can simply be a discounted percentage or variable offer and still produce a high conversion rate. Although standard promotions are most commonly seen in marketing, they are often poorly implemented. One of the most important aspects of a standard promotion is to include an urgency factor such as a time constraint for redemption.
Examples of standard promotions include:
- Jeff’s Dog Grooming offers 15% off a bath and haircut service.
- Golden Hair Salon is marketing a promotion that gives $10.00 off a cut and color.
- Ray’s Tires is giving a 4th tire free when you purchase 3 at full price.
Not All Offers Are Created Equally
Keep in mind consumers are advertised constantly and in every aspect of life. Via cell phone apps, Facebook, Instagram, billboards, radio, TV, you name it. An offer has to really sizzle to make a consumer decide to purchase or opt-in. A great incentive will be the differentiating factor between you and your competition. If you own a lawn care business, you know that 95% of your customers will need to use you more than once, so it makes logical sense to offer a steeper initial discount in an effort to persuade the prospect to choose you over the competition. Here are offer incentives ranked from most to least effective.
FREE – Everyone loves free. When Iron Strength Karate is gearing up for summer and back to school promotions they offer a completely free karate uniform. Dave, the owner, understands the initial investment eliminates the entry barrier for most families and is able to maintain most students as customers for years. Due to the
Dollar Amount Off – Getting a set amount off a product or service is great. Consumers don’t have to guess or do the math to understand the savings and benefit. Customers will be more inclined to frequent your business versus competition and have increased loyalty if they feel you provide a good value.
Percent Off – We’ve all see discounts ranging from 5-75%+ off. Although consumers do redeem these offers, they’re often difficult to understand. Unless a buyer thoroughly knows your pricing beforehand, it’s tough to get an idea of true savings and often requires a calculation. This method makes it difficult for a consumer to understand the value. Additionally, many buyers feel that percentage discounts are played out and often feel prices are artificially inflated to give a false sense of savings.
Ultimately what you’re willing to spend or give in exchange to acquire a new customer will depend on what you are willing to invest to earn the client over your competition. It makes far more sense to invest in a new client upfront rather than having to win them over from the competition. The cost of a new customer with incentives factored in can actually have a higher customer value over customers acquired without incentives. Consumers see marketing promotions as a positive benefit and are much more likely to become loyal, repeat customers.
This article is part 1 of a 4 part series covering:
Branding or Marketing?
What Makes an Offer Irresistible?
Direct Mail Tracking Methods
Crafting a Successful Direct Mail Campaign