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Little known answers to any marketing problem

Little known answers to any marketing problem

May 29, 2009

How can I increase the size of a purchase or get people to come back and buy more frequently? How can I generate more leads? Or how can I get more business from current customers?

These are some of the most popular questions I get all the time and for the first time I've put the answers together for you that can be used to solve just about any marketing problem.

How can I increase the size of a purchase?

Offer a free gift with a purchase. Research has shown that while one gift with a purchase increases response, an offer for two free gifts is even more effective in motivating a prospect to choose the more expensive option. The purpose of the free gifts is not to just get a prospect to take action, but to help nudge the fence-sitters to a higher-priced offer.

WARNING: Don't make the gift so attractive that people will act just to get the gift because you'll end up with a high return rate. Rather, give the gift as an incentive to buy now.

How can I get more of my sales to 'stick' and reduce returns?

Give an unexpected surprise for free with delivery of your product. Develop a 'stick' campaign, which is a series of mailers AFTER the sale that will make the customer feel good about the purchase and build an ingratiation (guilt) factor. Face it, some customers may not use your product to its full extent and some may never use it at all (it's sad, but true). So you need to make them feel as if they made the right decision.

Send them 2 or 3 mailers thanking them for doing business and reassuring them of their smart purchase decision. Include a small gift too. Some of my favorites are candy inside a bank or a candy jar, a CD of classical music (about $5.00), a mousepad, T-shirt or a coffee cup and/or a pouch of coffee with your brand logo imprinted on it (a cup is $2-$6 and the coffee is about $1.50).

How can I drive more traffic to my business?

Nothing draws traffic better than an event, especially one in which you're giving away prizes. One of the best promotions I've seen is the treasure chest give-away. Car dealers do this (or they used to in the good-old days of car sales). They sent a key in the mail to thousands of homes, but only one was the real key to a new car they were giving away. It's not uncommon for dealers to double sales with the promotion because so many people came to the store to try their luck.

It's the same idea with the treasure chest giveaway but any business can do it and instead sending out keys, a combination is mailed out to prospects with an invitation to come into the store and see if their combination is the winning one. This one is perfect to draw traffic to your store, your website or even your trade show booth.

But what's the problem with this offer?

No one thinks they'll win! So that's why I like to make sure everyone is a winner by giving a consolation prize to everyone who comes in. Let your prospects know even if they don't win, you'll have a prize for them too. (A coffee cup or flashlight key chain are good consolation prizes.)

How can I get my current customers to come back again and again?

Try a frequent buyer program. Consider this: it costs nearly 10 times more to bring in a new customer than it does to keep an existing customer coming back. Most business owners only think about bringing in customers and never think about how to market to their current customers.

The key to selling to your current customers is to invest in a relationship with them. Give them a good reason to come back to you ...

' Offer 'members only' discounts or services. Make your customers feel like they are part of an exclusive groups with special privileges such as members-only access or special discounts.

' Offer a Frequent Buyer Punch Card Key Tag. Every time a customer comes in to make a purchase, punch their card/key tag. After 5 or 10 purchases, they're entitled to a free gift. I like this better than the traditional wallet-size cards that can get easily lost or forgotten.

' Send out scratch-off postcards. This is one of my favorites. It's simple, but it always delivers big results. Send out an oversized postcard with 3 or 4 scratch off areas. When customers bring in the card and scratch off the areas, they will see their free gift or discount. Again, make sure everyone is a winner of something. Warn them that it can only be scratched off in the store and is invalid if done before they come in. (See p. 13 for a sample.)

' Send a Balloon-a-Gram. Mail a postcard with a flat balloon and a secret message on the balloon.

Here's how it works: the prospect receives the mailer and is told to blow up the balloon to reveal a secret message that's enlarged as the balloon is inflated. Why have them blow up the balloon?

Busy fingers improve response! The more someone interacts with your promotion, the higher your response rate.

For more details about any of the promotions mentioned here, go to www.LumpyMail.com or call us at 800-805-1220. As a Business GPS Gold Member you're entitled to exclusive discounts off the regular price!