You’ve finished writing out your sales letter or just finished the design on your latest postcard. Everything’s looking good but you realized you haven’t decided on what the right offer is going to be. You have a couple ideas but you need to finalize what you want to do. It’s time to set the hook to reel in the big fish with your mail piece. But first, what type of offer should you use?
Well, let’s explore a couple different types of offers that you could try out.
- Percentage and dollar off discounts
- Low or no risk experiences
Percentage And Dollar Off Discounts
As they say, “there’s nothing new under the sun,” and that definitely includes discount offers. But why are they so effective? We all know and understand that receiving 10% off or $5 off your first purchase might not save you that much. But it got you into the store, didn’t it? And you ended up buying more than expected didn’t you?
There’s something about a good sale or discount that makes it near impossible for our minds to reject. So when going about setting the right offer, how do you land on one that is effective for the customer, but also for you? If you’re going with the route of a monetary discount, always rely on this principle, “whichever one sounds like more.”
You want your offer to be irresistible so you need to choose the one that gives the highest perceived value. Consumers want to feel like they are getting the best deal and a large part of that is based on their initial impression of the offers. So, if your dollar amount is $50 off compared to a 15% discount, there’s a good chance that the $50 dollars off would outperform the percentage. Because a lot of people aren’t going to be doing that calculation of 15% in their head. The $50 off just sounds like a better deal. Studies have shown that even though two different offers give the same discount, whichever sounds like a better deal will outperform the other. And in some cases, as illogical as it sounds, a discount offering less, can still perform better because of the perceived value.
So how do you pick which one? The answer is to test them. Send out an A/B split on your next mailing. Make Offer A percentage off and Offer B dollars off. Compare how they perform and make adjustments with each mailing. The best way to find out which offer you should use is by testing.
Low Or No Risk Experience
But what if offering a monetary discount isn’t the best option for your business? Then, consider giving them a low or no risk experience. This could look like a “30 Day Free Trial” or a “60 Day Money Back Guarantee.” You have the greatest chance of making a sale when the consumer feels like it is a very low risk or no risk purchase. Ease their mind and concerns, by giving them the chance to try out your product without risking anything. And if your product and services perform as they should, you already have the sale made. You give them the opportunity to take it for a test drive. At that point, the odds are in your favor that they’ll convert into a sale.
Above all though, keep in mind who your target recipient is and what you’re trying to sell. If they're spending several thousand dollars, they’re going to have more concerns thus needing less risk. Go with the free trial for them. But, if you’re selling a service that normally costs $75, use a monetary discount to get them in. Keeping these factors in mind will help you decide on the right offer.