Everyone likes a deal. The Power of Deals in Marketing
May 26, 2010 -- Blog post. Recently we asked "Do you use coupons or special offers in your marketing?" The resounding answer was yes: 88% of survey respondents said they do. The interpretation was that maybe the economic times called for a way to bring in more people and keep cash flowing. So this week we will talk about the power of offering deals, and how they can be used as a powerful marketing tool for your business in good times and bad.
Everyone likes a deal, even the mega-rich. There are two deal types that consumers respect and respond well to: work & reward and one-time/blow-out. Work & reward involves a reward for consumers doing some work where consumers feel that what they are gaining is more valuable than what they are giving up; if there is no give and take, there is no perceived deal. A blow-out or one-time deal is something that is drastically reduced in price with the perception that the reduction is a once in a lifetime offer.
Examples of "real deals"
· - A "buy one get one free" requires the consumer to buy something in order to get the deal
· - Save $100 off the normal price of a $500 item because we need to reduce inventory or we made a great buy at a drastically lower cost. Only 10 are available at this price.
As the saying goes "If it sounds too good to be true...it probably is." Consumers are skeptical, so when you want to create a "real deal" follow this simple rule - Consumers know you are trying to lure them in, so be straight forward about it and either give them a reward for their efforts or a price/discount that they can't pass up. As obvious as this may sound, it is not practiced often. When it comes to deals, quality is much better than quantity. One well advertised "real deal" will produce more new sales and customers than many so-so discounts that just dilute your regular offer.