Let’s talk about products versus offers. Ever wondered why big firms remain in business through the ages?
I would give you a little secret.
The reason is simple, offers. Not just offers, but juicy offers made with the intent of attracting the customer’s attention to a particular goods or service and keeping that interest long enough that the customer feels like they are missing out on something good. This often ends with a customer making repeat purchases.S
Summary is, big firms keep making offers that get more customers into their doors and bringing repeat business.
What is an Offer?
Offers can be viewed from different perspectives, first as an amount a client is ready and willing to pay for a good or service and secondly as a conditional service or good between two parties that is provided when one of the parties agrees to fulfill the conditions. This is just the textbook definition. The business definition is much broader.
Creating offers is another way of increasing customers and also increasing traffic – channeling demand to your business.
Take for instance, a small page with about a thousand followers and few engagements, hosting a give away on the condition that followers stay tuned at a particular time and also invite others. It always works like magic, within the period the company runs the giveaway, the page will surely have increased followers and had more engagements.
In a lay man’s term, it is giving out a few to gain more – think baiting. Offers can never go out of fashion as businesses, big and small, create and seek avenues to create new offers to draw customers to their products.
Creating offers should not be limited to big firms only, you too can increase your customer or client size, improve your reviews and reach your business goals by adequately and regularly implementing the use of offers in your business structure.
That said, in this post, we would be sharing five reasons why you need to make an offer in your business and how it benefits you.
Offers Increase and Expand your Customer Base:
Every year, as an entrepreneur you lose about 10 – 25℅ of your customer base to competitors with better offers and newer products or oftentimes just better customer service. Making offers help you retain and increase your customers by attracting them from the competition, channeling the demand towards your products and help you replace the customers who have left for whatsoever reason.
Since offers are baits to get customers – old and new – to see your products and make a purchase, frequently coming up with new offers makes your products look exciting and grows your brand. In short companies who take the time to promote new offers tends to get 3X more engagement that companies who repeat same old products. People love new things.
Use Offers to get More Referrals:
Creating juicy offers is a way of getting referrals from clients. Let’s look at this scenario. Client one purchases an eye – bulging offer and informs friend A about his amazing purchase, friend A jumps on the offer and talks about his mindblowing purchase with friend B. Now friend B is intrigued and wants the same offer and so on. Therefore the list increases.
Offers sometimes give your customers the feeling that you care about them. Think of a spend-less-and-get-more offer, this offer makes the customer feels like you want the best for them consequently making them buy more. A classic example is the Black Friday sale.
Offers Help You Get Reviews
You want a review of your business, create an offer: When you have created offers, you have automatically won your customers’ heart, you have subtly bought them over and at this point, they are loyal and expectant to get more goods and service from you.
At this point, it is easier for you to request a review, and also interact with them to see how well they like your service or product and also get their opinion on how to improve.
Use Offers To Launch/ Test New products
When most big firms want to beat the competition, you get to see new products sold at cheaper prices or coming with bonuses or special free features / free trials.
International business empires such as Coca-Cola, Apple, Samsung, Toyota and the likes tend to use offers a lot when bringing out new products. Some offers when lunched become trends, a classic example, Coca-Cola sold millions of bottles when they printed names of people on their bottles. It was a crazy offer. Nothing changed, except that you were now aware that one of those bottles in the vending machine had your name on it.
The same goes for your business, when launching a new product, you can make use of amazing offers to attract new customers.
Offers Stimulate Repeat Purchases:
Whilst the profit margin can sometimes be slightly smaller, offers stimulate repeat purchases from existing customers and attract a new set of loyal customers, which in the long run is highly beneficial.
Offers can be created for both new customers – to get them through the door – and old customers to make them keep buying for you. For example a club can create an offer that says “20% off your first 5 drinks” for new customers and create another that says ” VIP lounge for old time customers at 25% off”.
While one offer helps bring in new customers, the other helps to endear old customers to the club even more as they feel valued and appreciated.
Some Examples of Offers
Free Delivery:
This offer never goes out of style as customers always seize such opportunities to obtain their favorite products. This offer has become popular with many e-commerce sellers. The rational behind why this offer works so well is that the customer feels he’s saving money on delivery.
Usually the delivery fee is hidden within the price, however business is all about perception and positioning. If properly done, the price should be positioned as helping the customer to save more. A classic offer type and best used for products based businesses. It’s usually used in E-commerce businesses.
Competitions:
Competitions are an offer type used for brand growth. This strategy is usually used by organisations that are already grown to some extent but want to increase their customer base. It is also not very common because it is capital intensive.
Most small businesses use this to generate traffic and increase sales and get clients to your landing page. Generally it revolves around hosting a competition, getting new followers and expectant customers who hope to win in the competition. The buzz around the cash makes more people want to know more and probably check out your social media handles.
It’s an intelligent way to increase your brand reach.
Guaranty or Warranty:
I am not the only one who gets excited when a product i buy has an issue and it is still within its guaranty period. Customers love guaranty!!! When you create guaranties or warranties you build more loyal customer fan base, who believe in your products and service.
Discounts:
This has become the most popular offer trend. In this strategy, a business agrees to sale it’s products at a reduced price calculated by percentage. This works perfectly especially where the customers know the existing price tag of the goods. Jumia’s Black Friday is very popular as goods are sold at very low prices that can’t be found anywhere.
Buy A and Get B free:
This is one of the most common types of offers and in my opinion the most effective. It’s best used when both products are complementary.
This is typically used in E-commerce businesses as well as food restaurants. Here two or more products are given off for the price of one where one product is the main product with the higher price and the second product is a complementary product with a lower price but still of immense value.
An example is when you buy a plate of food at a restaurant and get a free bottle of Coke.
Others include
- Giveaways, which are similar to cash prize competition.
- Free Trials which are usually used for new products by big companies usually to a few number of people and more commonly used by SaaS developers. The idea is to give a full or limited feature trial for a number of days with the option to get the full subscription or cancel. This is one of the most powerful offers in the software business.
- Gift vouchers. This are bonuses usually given to customers who take action and make a purchase. These gift cards are usually used in-house.
- Free Training : Free trainings are usually used as a lead magnet. A lead magnet is an item of value that is given for “free” in exchange for the contact information of a potential customer. The lead magnet can be used to demonstrate that the products which the creator wants the potential customer to buy is of the required value. It’s also used to build trust and authority between buyer and seller.
- First XXX number to Register get free YYY : this type of offers are used to support potential customers into taking action and making a commitment. It is also used to enhance FOMO – Fear of Missing Out. It’s forces the potential customers into taking instant action or missing out on a potentially very good deal.
Creating offers is no bluff, it has been proven to work from time immemorial to increase your client base. Also, Do not forget, Offers help to promote your business.
Other benefits of Utilising Offers in your business
Offers help to make your product a household name, increase visibility for your products and expand your business.
You might have created an offer once and it worked wonders for you, don’t stop there, keep creating more. Making offers should be regular and continuous.
To learn more about how you can use offers to scale your e-commerce business click here