Free or discount promotions should not alter your core valuable offer. Instead, they act as an attractive wrapper to make it more appealing. This is crucial for entering cold markets, as it gives people a compelling, low-risk reason to engage with your already-strong product or service.
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Instead of just a discount, companies like Magic Mind and AG1 boost conversions by bundling 'welcome gifts' like digital products or exclusive merch. This creates a unique, limited-time value that a simple percentage off cannot replicate, effectively sweetening the deal for customers.
Instead of offering direct discounts, which can devalue products, consider a double or triple loyalty point event. This strategy incentivizes customers to spend more to earn future rewards, effectively driving sales while encouraging repeat visits and fostering long-term loyalty. It costs little while giving customers a strong incentive.
Despite their power, premium offers are a poor starting point for new ventures without established credibility. Use free or discounted 'foot-in-the-door' offers to prove your value and build a reputation, then transition to a premium model. This approach de-risks customer acquisition when you're an unknown entity.
A 'free' or 'pay-what-you-want' offer creates enough goodwill to ask tough, confrontational questions upfront. This allows businesses to filter for genuinely committed long-term customers, turning a lead generation tool into a qualification test.
Constantly discounting your main product trains customers to wait for sales and devalues your brand. Instead, splinter off a small component of your core offer and discount that piece heavily. This acquires customers and builds trust without cannibalizing the perceived value of your full-priced core offer.
When entering a new market, working for free allows you to perfect your service without risk. It's the fastest way to gather social proof (testimonials) and build personal conviction, which are crucial for selling effectively later, giving you 'wiggle room' if the product is still rough.
Split tests reveal that leads from free offers convert at the same rate and ticket size as those from paid offers. The primary difference is that free offers dramatically lower lead acquisition costs (by 5x or more), making them more profitable. The "freebie seeker" stereotype is largely a myth.
Discounted offers make sales teams feel that prospects are "ready to spend," overcoming their limiting beliefs about selling. This increased conviction is a key mental benefit, even if upsell conversion rates are the same as with free leads. It makes the team more invested in the sales process.
The perceived value of a discount changes based on its presentation. Test framing it as a percentage off, an absolute amount off, a relative equivalent (e.g., "save a steak dinner"), or simply the final discounted price to see which one drives the most action from your target audience.
Justify "too good to be true" discounts by tying them to real-life events, both positive (birthdays, holidays) and negative (unexpected bills, damaged goods). This authenticity makes the offer more believable and compelling to customers, increasing conversion.
