If you want new customers, you need to give them a reason to give you a try. The first sale is always the hardest; you’re asking people to change a habit and try someone new. Think beyond getting a single sale; think of getting a long-term customer.
Once you have a customer, you can sell to him over and over and over again. But sometimes you have the make that first offer irresistible to get them to try you out. Repetition is also critical when doing any type of marketing.
Here are some guidelines to help you come up with a discount or offer that will encourage a high response.
Creating an Irresistible Offer – An Example
Let’s say a Mexican restaurant is considering the following two offers:
- 15% off the entire check
- FREE Burrito (one per table)
The average check is $20, so fifteen percent off saves a customer $3.
The average burrito is $6, so that saves the consumer twice as much! (And if the restaurant owner’s food cost is 30%, that FREE burrito costs him under $1.80 in food cost.)
Even if the consumer has no idea what a typical burrito costs, the perceived value of a no-strings-attached FREE burrito is a LOT higher than a 15% discount.
So what’s going to happen?
Billy opens his mailbox and quickly spots the “FREE Burrito” headline on his Dynamite Deals mailer. He looks for the fine print. “What’s the catch?” he asks himself. There is no catch! He could go in and get a FREE burrito and a water.
But most people don’t eat alone. So Billy calls Suzy and says, “No Ramen for us tonight, we’re getting a FREE burrito!”
So they go over there, get two burritos, chips y salsa, and a couple of beers. The check is $20. That’s $14 ($20 minus the $6.00 free burrito) in revenue the restaurant would NOT have had otherwise. And guess what else? Billy and Suzy love the food and the service and the atmosphere and yes, even the Mexican lager. And they come back an average of once a month for the next three years.
All for $1.80 in food cost to get them in to try it out.
So what can YOU come up with that your prospective customer will see as “irresistible”?