Try An Incentive

Do you like eating and drinking? I do.

When I had a big corporate job I once wrote an article called "I eat for England".

Do you like saving money? Me too. I'm so cheap sometimes I feel almost embarrassed.

Are you curious? Of course, or you wouldn't be reading this.

So last Saturday I went with a fair companion to The Admiralty Restaurant in Somerset House overlooking the Thames, where they had a deal - half price on the food.

The meal was excellent; and the place was full. So, being curious, I asked the lady on the door how many people had come because of the offer.

About half, she said.

They surely didn't lose money on us at nearly £70. You would have spent more, right?

Meanwhile, a girl I know works at a very good hamburger restaurant in Islington. Every day between 4.30 and 6.30 it's almost empty; so she spends her time rolling paper napkins round knives and forks.

The manageress, whom I also know, keeps saying they should run promotions - but they seem scared to.

It still astounds me how so few people realize two things:

1. Incentives pay, if used wisely.
2.If you use them all the time you cheapen your brand.

Why do they pay? Because generally you get all the people you would have got - plus a few you wouldn't have. I guess about 15% - 25%. And the extra ones convert into customers at much the same rate as the others.

Perhaps the wisest, and certainly the wittiest client I ever had was Victor Ross, Chairman of Reader's Digest.

He said: "I have never seen a relevant incentive fail to pay for itself."

If you're not trying incentives, do.

If you are, test alternatives (it may make a huge difference).

I will now cheat by taking extracts from one of the talks I have bored people with in 41 countries over the last 30 years.

The first question is obvious but often ignored: why do incentives work? There are three reasons.

They overcome fear - of being sold something the prospect doesn't need or can't afford.

They overcome laziness.

They give an excuse for trying you.

For all these reasons they should be prominent.

Always describe your incentive, and say what it's worth. If it costs nothing, it's worth nothing. The more desirable it sounds, the more replies you'll get. The more it's worth, the more people want it.

If it's a book (paper is so cheap!) on fitness, maybe - give it a title, say how many pages it has. If possible, sell it - thus setting a price.

Try more than one incentive. You can have one for replying, one for replying wthin 14 days, one for buying two or buying the luxury version, trying another product or service or recommending a friend.

Try a few things people might lose - a threat, if you like. It may work even better. In fact studies suggest it does.

* They have to buy by a certain date, or on a certain day.
* There are only so many left.
* It's a limited edition.
* It's restricted to certain privileged customers.

People are cynical. They think the cost comes out of the product Always say why you're being so nice.

* As a reward for doing something.
* To encourage them to try.
* Because "we find it's the cheapest way to get new customers".
* Because it's our centenary.

What makes a good incentive?

* The Golden Rule: add value, rather than cheapening the brand.
* A free Financial Planning booklet adds value; repeated discounts cheapen your brand.
* Discounts are better for acquiring customers, or rewarding them.
* Use them sparingly.

I hope you found this interesting and helpful. Let me know anything that interests you - or you disagree with.

Best,
Drayton

P.S.  This is number 8 of Drayton Bird’s 101 free helpful marketing ideas.  You can sign up on the link below for the rest.

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Website: www.draytonbirdcommonsense.com / www.eadim.com

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