An offer isn’t simply a promotion or discount code. An offer is a strategic structuring of your products or services where the value-to-cost ratio is value-heavy. In other words, an offer is the actual gain that your customers look for when they make a purchase with you. It is the ‘why’ behind their buying decisions and actions.
When most people first think of building an irresistible offer they automatically jump to dramatically discounting the price of their product or service.
That’s because discounts are the promotions we are most frequently exposed to. The reality for both customers and ecommerce brands is that we are constantly flooded with distractions, competition, and procrastination.
When crafting an offer, your mission is to break through this noise and turn visitors into customers in a consistent, and sustainable way.
There are three fundamental elements that go into forging a mouth-watering offer your ideal customer simply cannot refuse: Price Point, Risk Removal & Urgency.
Without further adieu, let’s break down the first component…
The number one influence in determining where people shop is price. A study by Sleeknote revealed that 87% of Americans say that price holds the most influence over their decision to buy and over 70% of people shopping online compare prices to find the best deal.
As counterintuitive as it may sound, the actual price of your product or service doesn’t matter. People are not after the cheapest product, but rather the highest perceived value at the lowest value-to-cost ratio.
That means you must create and clearly communicate extreme value – so much value that your prospective customers start to think: “I can’t believe I can get all of this for this price.”
Before we talk about sales and promotions, you need to establish your price point. To do so, you must first figure out your product margins so that you’re not creating your discount in vain.
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