How to Craft the Perfect Offer or Benefit

  • 20 Mar, 2023
Creating an offer that resonates with your target audience while also protecting your brand can be a tricky balance to strike. For businesses providing offers on reward and loyalty platforms, it's important to ensure that the offer is compelling enough to encourage customers to take action, but not so discounted that it damages your brand's value proposition. In this article, we'll explore a few tips to help businesses craft the right offer that drives sales and foot traffic without sacrificing brand value.
  1. Bundle products or services: Bundle products or services together to create a compelling offer that can increase sales and revenue. According to a study by McKinsey, bundling products can increase revenue by 5-15%. For example, a hospitality business could create a ‘Buy 2, Get 1 Free’. Similar to a ‘Buy 1, Get 1 Free’, this offer encourages more people to be part of the offer, more people experiencing the business and provides a higher spend per head. However, it’s important not to include many restrictions such as 'only available for lunch' or 'not available on public holidays'.
  2. Offer a limited-time promotion: Offering a time-limited promotion can create a sense of urgency and drive sales. Increasing the percentage off or increasing the deal for a limited time, helps generate increased sales. If you combine a limited-time offer make sure it’s timely and useful for the audience. An example for a Florist would be to increase the percentage discount for flowers the week leading up to Mother’s Day or Valentine’s Day – it may encourage people to purchase flowers not only from your business but also prior to the occasion decreasing pressure on staff on the actual occasion date.
  3. Use social proof: Incorporate social proof such as customer reviews, testimonials, and ratings to increase the perceived value of the offer. According to a study by BrightLocal, 82% of consumers read online reviews for local businesses, and 91% of consumers trust online reviews as much as personal recommendations.
  4. Create a personalised offer: Personalise the offer based on the customer's preferences, purchase history, and behaviour. According to a study by Epsilon, personalised emails have an open rate 29% higher than non-personalised ones.
  5. Offer a free trial or sample: Offering a free trial or sample can increase the likelihood of customers making a purchase. In fact, a study by Nielsen found that 60% of consumers will try a new product if they receive a sample, and 71% of those who try the sample will buy the product. For example, an offer or reward might be an extra product when purchasing a main product. For instance, a business in the beauty industry may provide 5% off all skincare products and a bonus small hand cream when they use a coupon code. The customer can try the hand cream, fall in love with it and purchase it next time for 5% off, increasing both cart value and customer loyalty.
  6. Offer a referral bonus: Encourage customers to refer their friends and family by offering a referral bonus. According to a study by Nielsen, 92% of consumers trust recommendations from people they know, and 77% of consumers are more likely to buy a new product when learning about it from friends or family.
  7. Use price anchoring: Use price anchoring by showing a higher price point first to make the offer seem like a better value. According to a study by ConversionXL, when comparing two products, customers are more likely to choose the cheaper option when it is presented after a higher-priced option. When crafting your offer or benefit, be sure to include the recommended retail price next to the offer, so customers can instantly see the value gained.
In conclusion, crafting the right offer is key to driving business growth and ensuring a positive ROI from loyalty and rewards programs. By following these tips and keeping a customer-centric mindset, businesses can create offers that not only attract customers but also align with their brand values and maintain the perceived value of their products or services. Remember, the goal is not just to increase sales but to build long-term relationships with customers, which can ultimately lead to repeat business and brand loyalty. So take the time to understand your customers, analyse your market data, and test different offers to find the ones that work best for your business and your customers.