Consider incentives to boost response rates
If you really want to boost your sales and increase return on advertising investment why not use an incentive?. Despite the extra cost and fulfilment involved they almost always pay for themselves .
Why do incentives pay?
You get more response as typically you engage the same response rates – plus loads more, expect to additionally attract between 10% and 30% who were sitting on the fence. Allso the additional inquiries should behave and convert at similar rates.
Direct marketing specialists the Reader’s Digest feature their incentive, a prize draw, often to the exclusion of the product. Why? Because Victor Ross, Chairman of Reader’s Digest once said “I have never seen a relevant incentive fail to pay for itself.”
Test an incentive today, consider these three reasons why you should:
1. They defeat inertia – of being sold something.
2. They defeat buyer’s remorse.
3. They provide an additional reason to consider the product or service.
For all these three reasons they should be part of your marketing mix
Always major on your incentive, describe it in detail, describe what it’s value. If it costs nothing, then describe the benefits. The more valuable it seems, the more business you will receive. The more value it has, the more engaging it will be.
Incentives can be different and varied. For example; you can have one for replying, one for replying within 14 days, one for multiple purchases, one for upgrading, trying another product or service or introducing another customer.
An incentive doesn’t have to be something you give, it could be something you remove, a reverse incentive. In some instances this has no cost involved and may work even better. In fact the experience of many marketing professionals suggest it does. For example:
* They have to buy by a certain date, or on a certain daya purchase deadline.
* There are only so many left.
* It’s a limited edition.
* It’s only for special customers.
The general public are vary and thoughtful, so be honest about your reasons for the stimulus. You will always be rewarded for your honesty. So tell them if it is:
. 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?
Always ensure that your inducement adds value, rather than cheapening the product or service. That’s why discounts rarely make good incentives. In fact studies have shown that increasing prices is often more profitable. Keep your marketing powder dry keep your incentives effective and fresh use them economically.
Jim Brackin is a Director of ESPConsultancy.co.uk the marketing research specialists. After a successful career in advertising and marketing Jim qualified as a Hypnotherapist, and is a Master Practitioner of Neuro-linguistics. A free report is available on how response led marketing can dramatically improve ROI.
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