Create Offers to Add More Value & to Encourage Quicker Responses
Dick Potter is an American consultant.
By doing a lot of “split run” tests, Dick discovered that an offer could increase the response to an advertisement or marketing campaign by as much as 300%. That’s three times!!!!
Consider that carefully. One way (coincidentally, the correct way) of interpreting that is to observe this crucial point:
If offers increase response by 300 %, never run an advertisement without an offer.
So, what is an offer?
Well, it’s ANYTHING that a prospective client/customer gets by responding to a proposition that they would otherwise not get.
When you consider the definition, another factor emerges. Offers must be time-limited. That is to say that a good offer would say directly something like: “When you invest in this service before June 30th, you’ll receive a ….. (whatever the offer is)”.
Offers and how they are articulated can make a huge difference to response rates.
Consider these variations of offers:
§ 50% off
§ Half price sale
§ Buy one, get one free
Which one works best? Well, you ought to know the answer - you would measure and test to find out. (As a general rule, by the way, the third one works best.)
There is another way of considering offers. Our friend Wally knew that way.
As a way of adding value, he created a pre-recorded endless tape of him saying, “Hello, Cocky.” He then added to that by creating an instruction manual to go with it.
The manual told you to put the tape in your tape recorder, then play it for three hours (that’s how long it took the average cockatoo to get it right). Someone once observed that a smart bird would welcome you home by saying, “Turn it off!!!”
The tape is valued at $19.75, but only costs about $2.00. Wally would add it in when the client bought an upgraded “Cocky pack” (a cockatoo, a cage, and some bird seed) as his special bonus gift. The bonus makes it easier for the customer to move to the higher profit item.
It’s a matter of developing high perceived value items — items that actually have low cost, though — and adding them in to the sale to encourage more people to buy.
Great examples are special reports, special books, or even things like a Hot Line service for premium clients. There’s an infinite number of both tangible and intangible bonuses you can “package” into a sales proposition. It requires some thought, yes.
Clearly, how you articulate the offer is critically important. For instance, if you saw an advertisement from a car dealer offering $1,000 off a car, you may or may not be interested. Equally, if you got a letter from the car dealer making the same offer, you may or may not be interested.
But, if you received a letter with a $1,000 check attached (made out to the car dealer), it would be a little harder for you to resist the offer, wouldn’t it?
Again, bonuses can make a profound contribution to sales, and when you finesse bonuses with back-ending ideas, the potential is enormous.