Discount Vs Value-Based: What’s More Important For Your Business?
For decades, businesses have tried different ways to encourage their customers to take action. They have included various call-to-action messages, such as Fill the form, Attend the seminar/ webinar, Visit a website, Buy now, Take a test drive, Take a quick tour, and more.
The most popular options to motivate targeted customers to TAKE ACTION is reducing the prices or providing valuable extra benefits. In this article, BusinessTRAK will help you find out which option is suitable for your business to grow your customer-based as well as build long-term relationship with them.
Various businesses have applied discounted money offers as a motivator to encourage their customers take action depending on their needs.
While this helped increase the number of initial sales and subsequent short-term revenue, this strategy was counterproductive to long-term revenue growth. Initially, discounting can be seemed as a competitive advantage. However, it became apparent over time that the discount customers were hard to retain due to the overwhelming majority of them continuing to search for the lowest price. Today, most consumers can be motivated with your company with a small 10% savings. More than likely, they will look for other competitors who are offering the same products or services for less.
Another problem of discount offers is that it is not suitable for all, such as non-profits organizations, insurance companies, schools, or religious organizations. It might degrade your brand reputation through your customers’ eyes.
In contrast, value-based promotion can help your businesses resolve the problems above. Webster’s Dictionary defines value as, “a fair return or equivalent in money, goods, or services for something exchanged”. Value means getting the most for your money. Giving customers value is key to your business’ success. Especially in today’s economy, value is playing an increasingly important role in consumers’ purchasing decisions.
When thinking about value-based promotion to stimulate your audience, there are 3 things you must consider:
- It must be HIGH-VALUE: Most consumers will not TAKE ACTION to get a free baseball cap, tee-shirts, calendar,… The gift value needs to be substantially more than a cash discount.
- It must be LOW-COST: In order to INCREASE PROFITS, the giveaway must cost less than the amount of dollar offered using a discount
- It must appeal to a wide audience: An incentive which is suitable for everyone will help the business attract a wider potential audience and raise more revenue.
We bring you a game-changing solution
We have tried to think a promotion that can match all three criteria’s by asking ourself a question “What’s the one thing most adults love to do?”
Well, the answer is quite simple. Everyone loves traveling, isn’t it?
BusinessTRAK has one of the few HIGH-VALUE, LOW-COST promotion available today. We have partnered with Travel Planet Network (TPN) (www.TravelPlanetNetwork.com) that provides businesses a way to getting their audience to take action and generate revenue for their organizations. Now, consumers have the ability to access up to $500 Travel Savings at 1 million worldwide hotels and resorts – for $50 or less.
Discovering our High-Value, Low-Cost Promotion on our website TODAY!