By Kumar Saurav
If there is one fact that marketers and business owners agree on, it is that customers have this inexplicable love for discounts. Offering discounts is a sure-shot way to get hold of your target audience’s attention and boost sales. Indeed, the growing importance of discounts offline can be attributed to the rampant use of discounts by shopping portals. Discounts can help in customer acquisition, but if executed badly, they can also lead to big losses and taint a brand’s reputation.
Early bird discounts refer to discounts that are restricted to only the first few customers of the latest product or service. The strategy is effective on account of the fact that they are tied to a time limit and that quick action is needed. It is this sense of urgency that in a way translates into purchase.
Early bird discounts are effective when launching new products or services. Many online stores have promotional offers like pre-order discounts to drive traffic to the store offering these new products/services. That said, offering a huge discount on a product prior to its launch can reduce its value in the consumer’s mind. Ensuring the discount is only a tiny percentage of the price of the product is crucial to amp up curiosity.
The “few items left” type strategy rests on simple psychology. Jack Brehm, in his book, Theory of Psychological Reactance, states that consumers often lose freedom of choice when they have limited opportunities. Consequently, when the choices are limited, the urge to keep that freedom intact increases the desire for that particular product. Plus the “early bird pricing” offer makes people feel empowered and they believe they have landed a good deal.
So how do you make your “early bird pricing” work?
First, communicate value to your target group. Leverage your online channels to create a unique connection with your visitors via storytelling. List FAQs on your site. Use a dedicated landing page. Create an early bird pricing page . Introduce deadlines and declare that limited users will avail of the offer.
One of the easiest ways to keep your product/service on the top of the consumer’s mind is through email. Describe in your email promotion how your early bird pricing enables customers to purchase an incredible product for less. You can also introduce some amount of fear and set a deadline for the pricing period. When stating the expiry date for your offer, be specific and adhere to the deadline.
Needless to say, you have to track the result of this exercise. Tracking sales, customer acquisition, repeat customers, revenue, etc will help in formulating the next step. Offering early bird discounts bring three big benefits in their wake. They aid in data collection, ensures audience engagement early on and the sense of urgency makes consumers the product’s advocates as they spread the word, amplifying your reach.
The author is business head, Global Mobile, AdCounty Media
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