Four Steps To An Irresistible Offer

By: Dan Kennedy on: May 28th, 2010 11 Comments

In my last post, I gave you two examples from two different industries of how you should not create the offer until you have found out as much as possible about the people who will be receiving the offer.

I also mentioned that I would reveal to you today some additional tips to help you create successful offers.

Here are four:

  1. The offer must be clear. People must be able to understand it instantly. Confused people do not respond. For example, half off is better than 50% off and a lot better than 35% or even 60% off. People have difficulty understanding percentages. Two for one is usually better than half off.
  2. The offer must be a good value. It has to be understood as a good value. That’s why percentage off coupons doesn’t usually work well. People get suspicious. They think as soon as they see I have coupons they’ll just raise the price to recover the discount. Percentage off coupons work well where there are known published prices.
  3. The offer should involve either a discount or a premium or preferably both. Sometimes premiums work much better than discounts. A premium is something you give away as a free gift to someone who comes in or who makes a purchase. For many years, Bill Glazer, President of Glazer-Kennedy Insider’s Circle operated two of the most successful menswear stores in the country. He meticulously tracked results of all his offers and found that by adding a premium, he averaged a 30% increase in response.
  4. There should be a logical reason for the offer. If you discount or give something away without an explanation you create skepticism and suspicion. People have been told all their lives there’s no such thing as a free lunch. You have to explain. We’re doing this to introduce ourselves to the neighborhood as an introductory offer in celebration of opening our new store, as an anniversary sale, a clearance sale, customer appreciation week. Just about any explanation will do but there needs to be an explanation.
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    ABOUT THE AUTHOR:

    Dan Kennedy is internationally recognized as the 'Millionaire Maker,' helping people in just about every category of business turn their ideas into fortunes. Dan's "No B.S." approach is refreshing amidst a world of small business marketing hype and enriches those who act on his advice. For more money-making marketing tips, tactics and strategies, go to www.GKIC.com

    11 Responses

    1. Charles Ra says:

      1. The offer must be clear.
      2. The offer must be a good value.
      3. The offer should involve either a discount or a premium or preferably both
      4. There should be a logical reason for the offer.
      repetition is the mother of skill. thank you Dan

    2. Great point: If you give an offer without a reason, both you and the offer lose some credibility.

    3. Rob Anspach says:

      I made more money giving away FREE than I ever did with a percentage off or some odd discount.

      Free is a tough sell but if you can answer the “whats in it for the customer to call” question – and create value you got a customer for life.

    4. Off to add a reason for an offer…

    5. Interesting insight Dan regarding 50% off and half off, and then half off and two for one.

      Having a reason for a promotion/sale/premium etc is also an interesting principal, so something like “Closing Down Sale” or “Spring Stock Clearance Sale” would work better than just “Sale” then?

    6. Charles Ra says:

      Rob, “whats in it for the customer to call”
      it takes time and deep thought to discover this.
      time for reading survery and surveys will certainly work.

    7. eric barton says:

      Absolutely…The Reason Why and What’s In It For The Client/Customer Is Very Important and Often Missed By Other Business Owners and Entrepreneurs.

    8. Mike says:

      Thanks for the reminder, Dan. I leaned this from you a couple years back. I used it recently on a promotion and it worked brilliantly. The only thing I added to your formula was an extended guarantee. I made it 365 days instead of the usual 30 days we’d offered in the past. By positioning the 365 day guarantee as a “free look” for a full year, response spiked. Again, many thanks for your insights and wisdom Dan.

    9. Joel Helfer says:

      It appears that so many people are busy running their businesses, that they just copycat what their peers are offering, without taking them time to come up with their own offers. Just last week I saw two adds in a magazine that were next to each offer, and were practically identical except for the name of the business. How crazy is that?

    10. Joan Stewart says:

      Make sure people understand what you are offering, don’t use cloak and dagger tactics. Keep a customer happy and they will return.

    11. I would of thought mos people new what 50% off would mean, does this mean that when marketing we have to take into account what we mean and should make things chidproof? Interesting.

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