Who does not like getting something for free! The principle of getting something for free is extremely motivating. There are reasons why BOGO deals are offered on all sorts of products from granola bars to shoes. We like getting value, or at least feeling, like we got a good deal or more value than the original price promised. Getting a freebie or a discount could easily be the reason a visitor becomes a customer.
How can giving away something help your conversion rate?
Customers are more likely to sign up for your mailing list.
When polled, consumers have reported promised savings being the primary reason for opting into email marketing. If upon confirming subscription, the visitor is instantly rewarded with 15% off a product or service, the visitor could easily become a customer. If they are signing up for the email list, they are already expressing interest in potentially becoming a customer so offering a reward can be the push needed to make a purchase.
Giving a discount communicates confidence.
When you choose to offer a product or service at a discount, it is not because your product or service is not valuable, but rather because you know that once the visitor experiences it firsthand, there will be a return on that investment. If the client hires your air conditioning company to perform routine maintenance at a 10% discount, the payout will be lower for that visit, but can be worthwhile in the long run. Once the customer is pleased, then in the future when air conditioning needs arise, they will choose your company even when not offered a discount. A discount is not communicating that your product or service is not worth the full price, but rather that you are confident that a slight profit loss on a first service will lead to many more purchases and a long-term loyal customer.
Don’t give away too much.
Obviously, offering something free or discounted is a loss for your company at least initially. The important factor is to giveaway something which will lead to profit for your business. Since email marketing is known to have a ROI of $44 for every dollar spent, offering a discount to clench email subscribers can be certainly worthwhile. Giving incentives appropriately takes strategy. Offering a discount on every email may be too much and be costing your company too much. If you give away a free air conditioning system, you will certainly have customers take advantage of the promotion, but since air conditioning systems on average last 15 years, the customer will not need another one for far too long. Offering a discount on the system or on routine maintenance after purchase could be a reasonable option which does not drain your company’s finances while helping build a longer term relationship with your customer.
At Harbin Designs, our mission is to help your company make a strong first impression which turns visitors into faithful long-term customers. When your company is looking for strategic help on promotions or on visitor to customer conversion altogether, schedule a consultation with our team!