#8 of 27 Awesome Growth Hacks
Step By Step Cheat Sheets That’ll Increase Your Businesses Bottom Line.
Creating offers that your customers can't resist
Chances are, you’re not the only one fighting for your customers’ business. Your competitors will be too, so you’ve always got to go one better, and make doing business with YOU look so much more appealing than doing business with THEM.
Using a compelling offer can be a key differentiator and the good news is that most businesses have absolutely no idea what constitutes a truly compelling offer
You can use offers to bring new customers into your business, to push existing customers to other product or services, or to upsell and to drive up your customer spends.
Here are the four commonalities that most irresistible offers share:
- It must stand out and grab attention - A ho-hum offer, like 10% off, will barely register
- It must be dead simple - If it isn’t immediately obvious, it won’t work
- It must prove that your product or service works
- A truly irresistible offer will appeal to your prospect’s hearts and their heads - It needs to work emotionally and logically
What Can You Afford to Offer?
I am constantly surprised by how few business owners have a good understanding of what the lifetime value of their customer is.
This is critical to work out what you can afford to spend on client acquisition, and is something you should nail down before you start thinking about what offer is going to work best for your business.
For example, a cost of a lead is £1 means that if 1 in every 10 leads buys, that means that the cost of acquiring that customer is £10. If only 1 in 50 become paying customers, the cost of acquisition is £50.
If on average your customers spend £1000 with a 10% margin over their lifetime then that’s £100 profit.
So paying £50 for a customer that gives you £100 in profit over their lifetime is a no brainer.
If you don’t know what the lifetime value of your average customer is, then you need to sit down and work it out before you can develop the perfect offer for your business.
Want to dramatically grow your business and profitability? Then you need to think aggressively about capturing more customers.
Let’s run through this 5-point checklist.
- 1. It must grab attention
There are loads of offers that you could use in your business, but only by thinking creatively about how your target market will react to your offer will you find something that stands out from the crowd and demands attention.
10% off is the least exciting, most instantly forgettable offer that you could possibly choose.
Yet it’s the default offer for so many businesses
Don’t Do It. Please!!
- 2. Keep it dead simple
Don’t make your offers any more complicated than they have to be.
Remember, people walk around with £10 notes and £20 notes in their pockets –
Percentages always have to be translated by the customer, that takes time, and it can cost you sales.
- 3. Prove that it Works
There are three main reasons to run an offer:
1. to attract new customers into your business
2. to encourage existing customers to try different products or services.
3. to sell ‘more of the same’ to your existing customers
As far as 1 and 2 are concerned, the sole aim of your offer must be to get your product or service into the hands of your prospects.
The danger with number 3 is that running the offer could cost you money, because you’re increasing revenues but slashing your profit.
If that’s the reason you’re running an offer, pay close attention to the advice in point 5.
- 4. Use a Deadline
Once you’ve worked out what your irresistible offer is, you need to select the most appropriate deadline.
Never run an offer without a deadline. Ever.
- 5. It must make you money, not cost you money
Truth is, there’s a big danger that the wrong offer is going to COST you money.
10% off is often the innocent-looking profit- killer around. The silent, secret assassin of unimaginative, ignorant business owners. It’s not a big enough offer to attract droves of new customers, but it’s going to knock 10% straight off your top line
Rather than stick an advert in the local paper advertising 20% Off, why not read the Direct Mail blueprint, and send 40% Off coupons to 100 prospects who you’d love to turn into customers.
The Secret To A Great Offer
When you’re crafting your perfect offer, ask yourself this:
“Will this offer compel everyone who reads it to take advantage of it?”
If the answer’s ‘no’, keep thinking.
Your offer needs to be so generous and so compelling that your prospect feels like they’re not just getting the better end of the deal, they’re actually ripping you off.