This may be controversial, but we’re going to say it anyway, we are not doing a Black Friday discount. And our question is, should you?
What is the real value in giving a discount? Yes, you get more business with clients who buy your product or service, but at a lower price. Assuming that the discount erodes your gross margins, you need to sell more from that offer to reduce your cost of sales to compensate. In our experience, customers who buy based on price alone, have very little loyalty and will switch to a new provider as soon as a better price comes along. So it would be interesting to compare your customer lifetime vales based on the price that they first purchased from you. Which clients are you more likely to retain long term?
Does a price reduction under value your services or products? We all want long term customers. Loyalty is built on relationships, customer service, providing an excellent solution and adding value. Its rarely based solely on price, although this is normally a contributing factor. Customers who are looking for price based deals, will often hold off purchasing again, expecting another offer or sale to be coming along.
What can you offer as a value add to your product or service to ensure your client base isn’t just built on discounted price? Can you include a free trial for another solution, an upgrade to the next tier?
To practice what we preach, talk to us about using telemarketing in your marketing strategy and until end of November we’ll include a free marketing strategy consultation.
