It’s tough growing a business at any time, especially in this economic climate. However, just a small increase in any one of the following areas can make big difference to your bottom line:
- The amount a customer spends with you each time they buy
- How many times a customer buys from you each year
- The number of years a customer buys from you
Here’s an example of how small changes make a big impact:
Suppose an average customer spends $50 a month with you. They remain a customer for 3 years. Their value to you is therefore $1800 (50 X 12 X 3). Watch what only an additional $2.50 added to each purchase, made every 28 days, for three years and three months does: their value increases to $2218 (52.5 X 13 X 3.25). For a business with 100 customers, this means a revenue growth of $41800!
Now, taking this example further, here’s an audacious out-of-the-box thought for you to consider: Give away the entire value of your first sale ($50) as an Outrageous Offer in order to acquire this average customer!
If you care for your customers – provide them with good service, quality products, prompt delivery, and good value for money – they will continue to buy from you for as long as they need what you offer. So, the small amount you invest upfront with your Outrageous Offer is minimal compared to the loyalty (and revenue) you’ll receive in return.
Since time immemorial, referrals and word of mouth have been the best way to attract business. Therefore, you’ll want any Outrageous Offer to be remarkable. That’s why small percentage discounts are not exciting enough to start the chatter that lures business your way. What’s better is to make an Outrageous Offer people can’t refuse – an offer with huge perceived value up front to them (and a large back-end to you) – that entices crowds to your door!
Here are three ideas for Outrageous Offers you can adapt:
Buy one, get one free:
- Hoteliers: Stay two nights, get the third night free
- Theaters: Buy one ticket, get a free ticket for a friend
- Gift store: Buy a Christmas card, get a birthday card free
- Tire store: Buy a new set of tires, get the tires repaired free
- Hairdressers: Get a free haircut with every hair color
Have your customers buy an item that is slower moving and use as a “give-away” a popular item that has a higher perceived value to your customer, but is lower in cost to you.
Give away something for free (or at a low cost) that needs to be purchased with something else:
- Grocers: Give spaghetti (what’s spaghetti without the sauce and the hamburger?)
- Hardware store: Give a gallon of paint (which needs a paint brush, drop cloth – and the other 4 gallons of paint!)
- Bar Owners: Give potato chips (need I say more?)
- Real Estate agents: Give a free housewarming set of pots and pans to first time homebuyers.
Let customers buy more up-front at a discount:
- Auto repair shop: Sell a 10 oil-change card for the price of 8 oil changes
- Photographers: Sell a “Family Package” – a professional photo of their kids taken every year for five years – for the price of 4 photo sessions.
- Computer repair: Buy 10 hours of service up front for the price of 9 hours.
And, in the spirit of this post, here’s my Outrageous Offer for you!
Basic Website + Blog + 1 year hosting for $400
What are your ideas for an outrageous offer? Did you try it? How did it work for you? Write your comments here!
Dare to be outrageous – your customers (and business) will thank you!
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