Offer Testing Proves an Essential Strategy for Retailers

By Carol Worthington-levy

10 Great Offers … And 10 Not So Great Ones

A lot depends on what YOUR business is, but here are examples of offers that work. In fact, often these cost less than a discount, but the perceived value is higher. These offers will work even better if they have your company name and/or logo screened on in some way, with your URL.

• A “hot” inexpensive toy that your market covets.

• A gift card or credit for a national chain like Starbucks or an online store such  as Amazon.

• Something collectible or a set, so that if you continue promoting gifts in your offers, consumers will want the latest one to “complete their collection.”

• A handy tool for the garden or to keep in the car; make sure it’s good enough quality to be dependable.

• Something consumable, as long as it doesn’t spoil en route. For example, a box of candy for the customer who’s just ordered candy as holiday gifts for friends. It’s a way to treat the customer to a little bit of what they’re sending as a gift.

• Personalized goods, like yellow sticky notes with the customer’s name on them.

• Apparel, such as a “this offer only” T-shirt. The more original the design, and the more focused it is for your marketplace, the more likely it will work.

• A nice “extra” that creates comfort, such as a small microwaveable pillow for aches and pains.

• A small slide chart with easily accessible information, such as a food-and-wine matching chart, or a sliding health guide for supplements or exercise routines.

• Something consumers can use all the time, such as a nice looking corkscrew, a bottle opener, a computer cleaning kit, a twisty flashlight, a small cooler, or even a nice picture frame.

At the same time offers lure consumers into relationships with your business, they should make you look good, too. Consumers aren’t dumb; they know what they like, and they won’t be impressed if you make them an offer like the following:

• Something that used to be cool or hip, but now it’s not — at all!

• Old trade show toys like spongy balls or magnets that people see as junk even at the trade show.

• Big stuff. It costs you too much to send, and people don’t like getting something they must make room for — e.g., ugly logo blankets.

• A gift where the recipient must actually pay more to use it, such as a $5 gift credit for a site where you can’t buy anything for under $30.

• Something that you weren’t able to sell.

• A poorly made tool, such as Leatherman knockoffs that don’t work, flashlights that take 10 very expensive tiny batteries, knives that don’t hold an edge for more than one cut, a Zip drive that starts falling apart when you use it, and so on.

• A gift that will attract bad leads because of its high value. There are consumers who will go to a lot of trouble if the gift is too enticing, even if they have to sit through a salesman’s pitch.

• A two-year-old whitepaper that everyone’s already seen. And by the way, there has to be a more appealing phrase than whitepaper! “Groundbreaking report on,” “Incisive study about.” Well, you get the idea.

• A gift that may be dead or broken when the customer gets it. I’ve gotten dead plants and broken toys from companies who should know better.

• Any offer for which the customer needs to do math! If you must discount, give them some dollars off — $10 off a purchase of a specific item worth $80, $20 off of a purchase of $100 or more, among others. Low-level discounts like 5 percent to 10 percent off won’t impress most consumers. — Carol Worthington-Levy

Regardless of the channels in which you sell, testing is invaluable to your business. And offer testing, in particular, is misunderstood in both practice and power. Yet testing seems complicated and time consuming. Is it worth it? The answer: You can't afford NOT to test.

Each program you're running has many elements that could be doing their job well — or failing. The ONLY way you'll ever know what works best to help you win customers is to test as many of these elements as possible in a disciplined environment.

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Creative & Copywriting: Test How Offers Can Grow Your Brand