What is a compelling offer?
A compelling offer is a valuable package deal that brings the customer a bigger benefit than just a simple product or service. A compelling offer is one that is so appealing that when customers hear it, they can’t say “NO”. By creating an irresistible offer, you will boost your sales with 30-50%! Not only will you boost your sales, but it also will help you position yourself above your competition, and build a strong name in the industry.
What is a NOT a compelling offer?
Simply discounting your services is NOT a compelling offer. A discount is just one way to add appeal to an offer. There are other ways to create a compelling offer, and you don’t even have to lower your prices. Customers will still run to buy your product, and they won’t think about to buy or not to buy. So let’s talk about how to create a compelling offer that your competitors haven’t even thought of:
1. Offer a bonus
One way to increase brand awareness and sales of your products is to offer your customers some type of bonus. It seems simple enough, but many marketers neglect this simple and easy opportunity. Providing customers with some form of bonus is incredibly important to brands that don’t believe in discounting. Do you know why most business owners complain that they customers care about the price only? Because they don’t do anything else, just lower the prices and offer discounts. If you create a brand that discounts too often, then your brand will soon be known as the cheap brand, or people will come to always expect the discount. At that point, you’re not offering a discount, you’re just cheap – and customers will start to push for discounts off that price. Ever walk into a business and when you start talking price, the first thing you say is “I know you can do better than that?” These are businesses that have discounted so often that customers expect a discount automatically. So instead of discounting your services, attach something extra to your offer, something that customers can use. This can also be a key differentiator between you and your competitors. Look around: if everybody would care about price only, we would drive only cheap cars, eat only in cheap restaurants, sleep on cheap mattresses, and live in cheap neighborhoods. This approach works much better than simply cutting your prices, and is something that your competition rarely does, if ever, giving you something that sets you apart in the marketplace. It also allows you to offer a benefit that is much more useful and fresher, with a higher perceived value, than a simple sale. What if you give 20% discount for a bed what worth $1500? What if you give a free night stand set with the bed in $300 value? Which sounds more interesting? The net dollar amount is the same, but the perceived value to the customer is so much more! Sometimes bonus is the main catch of the day There are situations where the only reason people buy the main product is because of the bonus – the bonus offer itself is more important to them than the actual product being sold. This is why infomercials are infamous for offering bonuses. They know that you may not be interested in the main product that’s being sold, even if they are doing a two for the price of one special. But sometimes they will throw in a product or accessory that is just enough to tip you over the edge into making the purchase. It’s that added bonus product that gets you to open your wallet. Start to use the words:
- Free gift
Stop using the words:
- Low cost
- A free product
The product should be relevant for the service, and provide the client with added value. Think of the difference between a “Rain coat” and a “Rain coat with a free umbrella”? Not the nicest, but effective (they just forgot to set the limit ie. how many they have, or what is the deadline):
- A free service
Think of a bonus service that would tie in well with your primary service. One example could be “Buy a used car and you will get free monthly carwash for the first year”. And if you work to develop strong cross-marketing relationships with other businesses, you may be able to offer better bonus services at a lower cost to you.
- An experience
Promote special customers-only events for your best customers. Give them a SPA weekend, or an exclusive massage or a a short vacation. Like in this promotion. They don’t offer miles as a bonus, they offer the experience Promote special customers-only events for your best customers. Give them a SPA weekend, or an exclusive massage or a a short vacation. Like in this promotion. They don’t offer miles as a bonus, they offer the experience of traveling:
- Think “big”
Offer a big package of gear they can use. For example, if are a personal trainer, offer a home gym kit as a bonus. With some careful shopping, a stability ball, jump-rope, some resistance bands, ab-wheel, and a pair of ankle- and wrist weights can cost under $30, but sounds like a lot. If you sell interior, offer a starter home kit with some design pillows and small accessories for their new home. See the pattern? The bonus ties in with your product, so people can use them immediately, and are happy to have the added product or service. It works as a great motivator, and it makes your offer stand out from your competition.
Marketing capital offence: If your offer is boring, dull, and very similar to the competitors’.
A bonus not only make your product more interesting, but make it difficult to compare with your competitors.
2. Shift their focus from the price
How to make a customer purchase instead of thinking? I give you an example: Parent1: Come on, and eat! Parent2: Come on and eat, you can get a dessert after dinner! (see the “bonus” pattern in the marketing?) Parent3: What do you want to eat? Burgers or mac & cheese? This is an old trick. The customer instead of thinking to buy or not to buy, thinks about which product to buy. And this is what we want! Let’s see an example from the car business:
|Product 1.||Product 2.|
|A Mercedes Benz||A Mercedes Benz|
|3 year service guarantee||3 year service guarantee|
|Extended guarantee for 5 years|
|Free oil change for the first service|
See? The customer doesn’t think of buying the car or not. They think about which offer to buy. There is that 15-20% of your customers who don’t care about the price. They are the one who want the newest car will full extras, they buy first class ticket instead of economy, they go to top restaurants instead of fast food. Give them a choice to buy your “full extra” product for extra price!
Pricing tip: Offer the “extra” product for only 10-15% more than the regular product. This way the customers would say “YES” for the more expensive offer, because the difference is not that big.
Read more: How to Implement ERP Software Successfully?
3. Give them a guarantee
People will be skeptical. It’s in our nature, especially when we hear claims everyday in advertising that sound too good to be true. Some of the questions I hear most from customers include:
- Will it work?
- Have others tried this before me, and did it work for them?
- What if it doesn’t work for me?
- What if I can’t use it?
- What if it breaks?
These are questions that can keep your customers from buying your product, even if you have offered compelling bonuses. How do you overcome this skepticism? Offer your clients a money-back guarantee! One of the biggest reasons people don’t buy from you is the perceived risk they believe they are taking in purchasing your product or service. These risks can include:
- Making the wrong decision
- Losing money
- Losing time
- Not receiving what they paid for
- Not being satisfied
Do you eliminate these fears with your guarantee? If not, you lose valuable customers who might buy your product if they can try it risk free.
One strategy to overcome these risks is to offer a rock-solid guarantee that will make their purchase risk-free, or at least decrease the risk as much as possible. Guarantee suggest this: “You can try me out for free, don’t worry”. People are nervous about spending their money. There are too many scammers and low-quality products out there that make big claims but don’t deliver results. People worry that they’ll end up wasting their hard-earned cash when it comes to buy many products. If people fear that they’re going to lose their money and not get the results they are looking for, they are unlikely to purchase your goods. But, if you can remove these doubts, people have an incentive to give your product or service a try. Offering a risk-free guarantee offsets these doubts, and lets customers know that you won’t leave them hanging. Knowing there is no risk and that they don’t have anything to lose by purchasing your product is a powerful purchasing motivator. This “reverses” the risk and places some of it on the seller. This is called “risk reversal.” If potential customers know that they can get their money back if they aren’t satisfied, they’ll be less concerned about wasting their money and will be more likely to give it a try. Plus, a lot of people instantly feel better about a product if the seller is willing to stand behind it. It shows that your product is worthwhile and that you aren’t afraid to back it up with a risk-free guarantee.