Your business thrives on the strength of your offers. Crafting a powerful arsenal of power offers is essential for attracting, engaging, and retaining customers. I am going to give you the four types of power offers that we use in our business strategy – Free, Entry, Core, and Premium – and uncover how they can drive success for businesses of all sizes.
1. Free: The Gateway to Engagement and Trust
The Free Offer is the cornerstone of any successful business strategy. It serves as the entry point for potential customers, enticing them to take the first step into your brand ecosystem. But why is offering something for free so important?
- Lead Generation: Incredibly effective for lead generation. In fact, according to HubSpot, companies that offer free content see 45% more traffic to their websites.
- Building Trust: By providing value upfront without asking for anything in return, businesses can build trust with their audience. Trustpilot reports that 73% of consumers say they trust a business more after reading positive reviews.
- Showcasing Expertise: Provide an opportunity to showcase your expertise and establish yourself as a thought leader in your industry. This can help you stand out from the competition and attract more customers.
- Show, Don’t Tell: Ever heard the phrase “seeing is believing”? With video, you can demonstrate your value in action, making it irresistible to your audience.
- Connection is Key: Video adds a personal touch, helping you connect with your audience on a deeper level. It’s like having a friendly chat with your potential customers!
Scenario
A digital marketing agency offers a free webinar on “10 Proven Strategies to Skyrocket Your Online Sales.” By sharing valuable insights and actionable tips, the agency positions itself as a trusted resource for businesses looking to boost their online presence.
2. Entry: Converting Prospects into Customers
Once you’ve captured the attention of potential customers with your Free Offer, it’s time to convert them into paying customers with an Entry Offer. This should be low-cost but high-value, enticing prospects to take the next step in their customer journey. But what makes a good Entry Offer?
- Reducing Friction: Help reduce the friction associated with making a purchase. A study by ConversionXL found that offering a discount can increase conversions by up to 50%.
- Upsell Opportunities: Can also serve as a gateway to upselling higher-priced products or services in the future. According to Marketing Metrics, the probability of selling to an existing customer is 60-70%. While the probability of selling to a new prospect is only 5-20%.
- Gathering Insights: Analyzing the response to Entry Offers can provide valuable insights into customer preferences and buying behavior. This helping you refine your marketing strategy.
- Happy Customers, Happy Life: Share video testimonials or success stories to build trust and credibility. When people see others loving your product/service, they’ll want to get in on the action too!
- Lights, Camera, Action!: Create a sense of urgency and excitement with video. Use it to announce special promotions or limited-time offers, and watch as sales roll in!
Scenario
A subscription-based meal kit service offers a 50% discount on the first box for new customers. This low-risk offer encourages prospects to try out the service, with the potential for upselling to larger meal plans in the future.
3. Core Power Offer: Delivering Value and Fostering Loyalty
At the heart of every business is its Core Offer – the flagship product or service that forms the foundation of its value proposition. The Core Offer should provide tangible benefits that address the core needs and desires of your target market. What sets a Core Offer apart?
- Distinctive Value Proposition: Your Core Offer should differentiate you from competitors and deliver unique value to your customers. According to Bain & Company, increasing customer retention rates by just 5% can increase profits by 25-95%.
- Customer Satisfaction: Ensuring the quality and reliability of your Core Offer is essential for fostering customer satisfaction and loyalty. A study by American Express found that 67% of customers are willing to spend more with a company they believe provides excellent customer service.
- Brand Identity: Your Core Offer often embodies the essence of your brand and plays a pivotal role in shaping your identity and perception in the marketplace. This can help you attract more customers and retain them over the long term.
- Share Your Story: Use video to share your brand story and values in a way that’s authentic and engaging. When customers connect with your story, they’ll be more likely to stick around for the long haul.
- How-to Heaven: Create video tutorials or guides to help customers get the most out of your core offer. It’s like having a helpful friend on standby whenever they need assistance!
Scenario
A software company offers a subscription-based project management tool with advanced features tailored for teams and enterprises. The reliability, scalability, and ease of use of the software make it indispensable for businesses seeking to streamline their project workflows. Create a series of bite-sized video tutorials to help users master all the awesome features!
4. Premium Power Offer: Elevating Value and Maximizing Revenue
While your Core Offer forms the foundation of your business, a Premium Offer allows you to cater to high-end customers and maximize revenue. Premium offers go above and beyond your Core Offer, providing additional features, benefits, or exclusivity at a premium price point. But why should you offer a Premium Offer?
- Enhanced Value Proposition: Premium offers should deliver exceptional value that justifies the higher price tag and caters to the unique preferences of premium customers. According to Nielsen, 46% of global consumers are willing to pay extra for products and services from companies committed to positive social and environmental impact.
- Exclusivity and Prestige: Positioning your Premium Offer as exclusive or limited-edition can enhance its perceived value and appeal to affluent customers. A study by McKinsey found that 50% of consumers would switch brands for a product that offers environmental benefits.
- Revenue Optimization: Premium offers contribute significantly to revenue optimization by capturing additional value from high-spending customers and driving profitability. In fact, according to Adobe, repeat customers generate 40% of a company’s revenue, despite making up only 8% of its customer base.
- Dream Big: Use video to create aspirational content that showcases the luxury and exclusivity of your premium offer. It’s like giving customers a taste of the high life!
- Behind the Scenes: Share behind-the-scenes glimpses or insider secrets to make your premium offer feel even more exclusive. Customers will feel like part of an exclusive club!
- Personal Touch: Wow your premium customers with personalized video messages or special offers. It’s like rolling out the red carpet every time they interact with your brand!
Scenario
An airline company offers a premium membership program that provides exclusive benefits such as access to VIP lounges, priority boarding, complimentary upgrades, and personalized concierge services. Frequent flyers and business travelers are willing to pay a premium for these perks, enhancing their travel experience and loyalty to the airline. Can you guess how they announce, promote and highlight these features….you guessed it, with VIDEO.
Conclusion
And there you have it – the power of video marketing across every offer in your business arsenal! Whether you’re grabbing attention with a free offer or elevating the experience with a premium offer, video is your secret weapon for winning hearts, minds, and wallets. So grab your camera, get creative, and get ready to watch your business soar to new heights of success!
