Commerce, whether online or on the High Street, is a competitive business. While you might have a unique angle to your business, there are likely a million others competing for your customers’ attention. Getting noticed, standing out amongst this crowd is challenging, and it is tempting to go down the route of the sales perk. With an eye-catching initial offer, you lure the customer – much like the kitten drawn to the bright, pretty light. As a third of all 18 – 24-year-old consumers in Britain expect a perk from a brand, it might be worth considering if this is something you should be doing.
Here we explore some of these sales perks that brands have used to win the sale. Yet, we also explore whether this quick win is the right route for your business. Should your focus be on the substance of your business and the garnering of loyalty?
Perk 1: Free months of subscription
The big-name subscription services, such as Netflix and Apple TV, offer the perk of free subscription months when you first sign up. Apple TV offered Apple existing customers a year of free television, as long as you agreed to a rolling billing after this time. The strategy is clear: you sign up to the freebie subscription, upload your payment details at this time, and the hope is that you will enjoy the service so much you won’t cancel. Alternatively, you will not notice the monthly subscription leaving your account for a time.
Perk 2: Competitions
On the other hand, offering a long period of free subscriptions to all customers is expensive.
A more affordable approach could be to offer 1000 customers the chance to “win” the free subscription by offering an email address. While you do not get the payment details, you generate many leads with a smaller cash injection.
Perk 3: Discounts
Reducing the price is another obvious sales perk. You offer the chance to buy at a discount and experience the product or service before committing to the full price. The problem with deep discounts is that it also devalues your product and the esteem it is viewed in. It also reveals something of your mark-up to the customer.
However, discounts do create a buzz, especially online. Therefore, any amount you lose in discount will be made up in customers.
Perk 4: Freebies
People love getting something for nothing. For a while, Honda cars gave away a free umbrella to new car customers and a tin of sweets. The sense of getting something for nothing gives the impression the customer is valued. It doesn’t have to be a massive gesture. For instance, you might offer free keychains or a fridge magnet or money off the next purchase. The idea here is to make a deal with the customer, helping them feel they are getting value without costing your business too much in the process.
Perk 5: Cashback
Another way to entice customers is to offer cashback when they spend a threshold amount. The idea here is to prompt the customer to spend more while believing they are getting a better deal. You can also connect with credit cards and high street banks, offering money back into their bank account when they shop with you.
Perk 6: Take the pain out of switching
When you win a customer or client, it is likely at the expense of another business. Take mobile phone contracts as an example. If your new customer moves to your tariffs, they may need to pay an early termination fee. T-Mobile took the pain out of making this move to their brand by paying this termination fee for the customer. While this will make the initial winning of the client a potential loss to T-Mobile, they have a new customer on a long-term contract.
If you are a business that offers quotations to potential new customers, you could enjoy a similar result by offering to match cheaper offers but with your higher level of service. Be aware that offering to match the offer will only be good value to the customer if they see they are getting more for their money by choosing you.
The difference between a sale and a customer
While getting that sale is relatively simple, and sales perks are useful, winning a customer is different. A customer is a person that comes back time and again, and that loyalty is unlikely to be because of free delivery or a discount.
While a new customer is a bonus find, they are expensive to acquire. It can cost between 5 and 10 times more to gain a new buyer over an existing customer. Think of all the money you are pouring into marketing, advertising and these perks that incentivise the sale.
Take Nespresso as an example. The coffee brand may offer a deep discount on your machine and your first order, which gets the sale. However, the quality of the coffee experience means the customer will then sign up for the subscription service, where the real value lies. The machine – well, that is a purchase every few years. The coffee pods subscription is money in the bank every month. Offer disappointing quality, and the lifetime value of the customer diminishes massively.
When you have a loyal customer in your corner, they are likely to become your ambassador, your advocate. When asked for a recommendation, they will offer your name and drive others to your business. You will also find it easier to up-sell and cross-sell to these loyal customers, using their past purchase history to inform your offers.
In short, the six sales perks suggested can win you an initial sale. However, without the quality service or product in place, your efforts will be in vain. Ultimately, these perks only work if the core of your business is geared towards retaining the loyalty of the customer who has bought in.
Laura McLoughlin is a Digital PR based in Armagh, Northern Ireland. She has previous experience as a website editor and journalist, and currently works with Chorus Commerce.
Sales stock photo by fizkes/Shutterstock
