How Premiums Work Better Than Coupons and Discounts
31 May 2013 Leave a Comment
in Discounts, specials Tags: coupons, discounts, free, offers
What is a Premium?
A premium is anything of value that you offer a prospect or client in exchange for taking an action that you direct them to. This could include an incentive or a gift.
The right premium could encourage someone who might otherwise set aside the mail to act now instead of later (or not at all). This works especially well when there is a limited quantity available or you state a deadline for responding. An example of this would be offering a Starbucks coffee gift card in exchange for filling out a survey or submitting an honest testimonial.
how to decide on what offer to offer!
Premiums can also be used to generate demand for your products and services, to reward fast response, or to boost the size of an order.
Why Does a Premium Work?
Everyone wants something for free, but they also want to reward those who rewarded them.
Premiums work because of the “rule of reciprocation” made famous by Robert Cialdini, a psychologist and author of Influence: The Psychology of Persuasion. According to Cialdini, “We are obligated to give back to others the forms of behavior that they have given to us. Essentially, thou shalt not take without giving in return.”
How Premiums Improve Direct Mail Response?
Any direct mail campaign includes the following components:
- The Mailing List
- The Design
- The Copy
- The Offer
- The Print & Packaging
- Timing & Delivery
How do premiums fit into this? They are part of the offer.
Most premiums have low costs but a high perceived value. Although premiums add to the cost of a mailing, the gain in response and the attention they provide outweigh the additional expenses.
Premiums can be delivered in several ways, depending on the goals of the campaign. The premium can be delivered as a front-end offer, when you want your mailing to stand out. It can also be delivered as a bonus or incentive, if the recipient responds to your call to action. In this case, a photo or graphic image of the premium would work well.
Examples of premiums can be found in daily life outside of direct mailers. The McDonald’s Happy Meal is often purchased because of the toy premium inside rather than the food. Many cereal boxes are sold because of the trinkets inside as well. Premiums are often used at sporting events when the ticket attendant hands out a calendar or a bobble head to the first 1,000 attendees. Premiums are also found in many non-profit mailers, where a free set of mailing labels with your return address printed on them are included, along with the request for a donation. Our society at large is conditioned to appreciate premiums.
Premiums can also be used to encourage your existing clients to give you referrals and testimonials. They can be used as great reminders to motivate your best clients to help you get more customers.
But will premiums work for you?
Remember that your premium is only one part of the direct mail package. You must still follow best practices and essential principles of direct mail. Although a premium can improve results, premiums alone do not guarantee success.
Just because premiums work for many companies does not guarantee that they will work for you. Test different premium offers, and keep careful records of your costs and sales (or leads) generated.
Although the recipients are not obligated to respond, history, case studies, and human psychology indicate that offering premiums can significantly boost your response rates. Direct mail + a premium can be a winning combination to boost business for your company.
Flash Sale Marketing Tips
25 Dec 2012 Leave a Comment
in offers Tags: flash mob, offers, Sales
Flash sales have become one of the marketing industry’s hottest new ways to not only grab attention but also boost web traffic and create front-of-mind awareness. While email is typically the key driver of flash sale campaigns, social media is a close follower. Here are a few tips to help you get the most out of your next flash sale marketing campaign:
- Create urgency with a short time window for your sales. These can range from a few hours to a day or two maximum. The longer customers put off buying, the less likely they are to make a purchase. Studies show that flash sales with a three-hour window have the best transaction-to-click rates. Most purchases are made within the first hour.
- Be sure your inventory is adequate for a flash sale, and alert customers if supplies are limited.
- Consider a flash sale with an open-ended coupon promo to increase foot traffic. For example, you might offer a $150 salon coupon for only $75 from 11am-1pm.
- Use multiple avenues to spread the word quickly. These may include email, texting, mobile coupons, Twitter, Facebook, LinkedIn, and other social sites.
- Encourage recipients to share or forward your message to their friends.
- Create an attention-grabbing subject line or header, and follow through with a concise message that communicates the necessary details of your sale.
- Consider sending a reminder. Light a fire under the feet of customers who are interested but dragging their heels, and remind them that your offer expires soon.
- Remember that timing is everything, so determine the best times to blast your recipients. The most common times for a flash sale revolve around lunch or evenings, making the sale accessible to buyers who work during the day.
- Monitor your social accounts closely during a flash sale, since customers will want immediate answers to any potential questions or concerns before the sale expires.
- Consider mailing postcards for big weekend flash sale events to grab attention and give customers a little extra time to prepare for your sale. For example, grab attention with an oversized postcard that says “Save 40% off everything in our store for four hours only on Saturday!”
- Consider offering a live online counter to show how many “deals” have been purchased. Popularity sells, so if XX other people thought it was a good deal, many others will think they need to buy one, too.
- Suggest that shoppers follow you on Facebook or Twitter to ensure they don’t miss out on your next exciting sale!
After Sale Marketing
07 Dec 2012 Leave a Comment
in creative offers, Marketing TIPS, Social Media Tags: offers, Sales Calls, thank you cards
Follow up with your customers after the sale is done.
Following up after a sale provides an opportunity to offer a heart-felt thank you and ensure customer satisfaction. It also lets you discuss additional services and improve a customer’s probable return to your business. Here are a few follow-up tips for after-sale marketing:
- Show your gratitude with a free offer that complements the original purchase. For example, a hair stylist could show thanks by offering a voucher for a free hair styling product. Include specifics, such as a $15 maximum value redeemable within 60 days of postmark.
- Boost sales by providing a coupon for free shipping or 25% off their next order. Encourage customers to pass it on if they don’t need to use the offer themselves.
- Suggest complementary products or services that will enhance the initial purchase and increase the customer’s satisfaction and loyalty. Consider creating an affiliate program with non-competing businesses to expand your offerings.
- Reward customers for providing referrals. Offer an exclusive discount to both your existing customer and a new referral to increase the number of referrals you receive.
- Highlight your contact information on an item your customers will keep, such as a business card, calendar, customized notepad, magnet, or pen.
- Become a resource to your customers by encouraging customers to sign up for an informational newsletter with industry tips and tricks. You might also consider providing valuable tutorials and training classes.
- Consider using the 10-10-10 follow-up pattern (or even a less-aggressive 30-30-30). Send an initial thank you within 10 days after the purchase. Contact them again after 10 days, then a third time after another 10 days. Vary your method of communication, such as a hand-written note, email, and phone call. Include an offer in all communications, and build on the urgency in each contact.
- Ask for feedback about the customer’s recent purchase or send a survey with an incentive to respond. Many customers will be eager to discuss their experience or may even have questions.
- A new idea might be to consider thanking them on Facebook or other social media.
If you need creative print ideas to stay in touch your customers, give us a call today. Our creative team is full of ideas to ensure your customers come back for more, and bring new customers with them!
