The most important element of your advertising campaign, the one that actually makes it impossible for people NOT to buy from you, is usually the one most marketers either gloss over, or completely ignore.
Before we get to that, think about the last time you bought something substantial. Go on, think about it. A car. A fridge. A mobile phone plan. Now think about why you bought it.
Was it the really cool photos in the ad?
Was it the advertising copy that made you believe you REALLY needed it? (This is not such a far stretch. Great copy is actually really important in creating that desire)
Maybe it was the laser targeting that got the ad in front of you at the right time?
Maybe. But I doubt it…
Don’t get me wrong, all these things are really important, and getting them right can genuinely help get you the returns you want, but none of them, NONE of them, can make up for a crap offer. In fact, getting all those other things right and having a crap offer will just make sure more people know exactly how crap your offer is.
“In fact, getting all those other things right and having a crap offer will just make sure more people know exactly how crap your offer is.”Simon – Orbit Marketing
Now think again about the last big thing you bought and think about what role the offer played in your decision-making process. If you’re like most of us, it played a BIG part.
It’s the one thing that can absolutely transform your campaign from being a mediocre campaign, to being the one that changes the game for your business. And no, I’m not overstating it or being overly dramatic.
Why then is it the one thing most business owners totally gloss over, or worse, ignore altogether? In our experience, it’s from a fear of discouting and a complete lack of understanding of consumer behavior, and the lifetime value of a customer. Let me explain…
Most business owners we speak to say something like ‘I can’t afford to discount my product, it only costs XX to start with so the ad campaign would actually cost me money’ or ‘discounting just devalues my product’
Both true, to an extent, and we’ll look at them one at a time in a moment, but first you need to consider this… its the job of your ad campaign to get you more customers. That’s it. Once you have them, it’s the job of you and your team to nurture them so they keep buying from you, and referring more people to you, and THAT’S where growth and real, game changing, revenue increases come from.
So what can you afford to offer to get a new client? To answer that you need to know how much a client is worth over their lifetime. Here’s the formula…
Average sale value X average number of purchases per month (or week, or year) X average number of months (weeks, years) a client stays with you. Lets take a hairdresser as an example. The average sale might be $100 ($150 one visit for a cut, colour and treatment and then only $50 the next visit for a touch up). On average one visit per month, and on average a customer might stay for 5 years. Lets be honest, its easier to change partners than hairdressers!
So based on that the average client is worth about $6000. So suddenly, offering a $150 cut, colour, treatmant for $47 looks like a smart move when you consider that a new customer could be worth up to $6000!
So what about devaluing the product. Again, a legitimate concern. Then don’t discount your core product. Find a stand alone, smaller product or service, and discount that instead.
Let’s say you’re a golf pro and your core product is a package of 10 x 1 hour lessons to help someone break 100 strokes for 18 holes. You might offer of a ‘Tee Off’ session where you offer to add at least 50 meters to their tee shots in a 45 minute session. It’s specific, it’s got value in it’s own right and it’s NOT your core product. Say you charge about $150/hr. You could say something like ‘Add 50 meters to your tee shot with our limited offer Tee Off session, worth $110, now only $17′. Have a limited number of them, or make them available for short period of time so there is some urgency. OK, so thats’ going to cost you money but if you can actually deliver what you said you would (add 50 meters to someones tee shot) the odds of that person buying your $1500 package to break 100 shots just went up 100x And imagine what they’ll tell their mates next time they all play. You’ll have more clients than you can handle!
So you can see the importance of a killer offer, and why you need to look at the bigger picture.
Now, work out your lifetime customer value, figure out how much you can afford to spend to get a new customer and come up with a killer offer of your own.
If you’re not sure how, reach out and ask. We’re offering a 45 minute ‘Build your own killer offer’ strategy session valued at $195 for only $17 (see how that works!) At the end of it you’ll have an irresistable offer you can take to market to totally transform your marketing campaign.
Message us HERE to take up our offer.