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Most brands offer some form of sign-up offer with the aim of enticing customers in. 10% off your first order, free delivery when you sign up to our newsletter, money back if you’re not satisfied with our product and so on. But have brands lost sight of why sign up offers exist? And are most brands simply ticking a box because it’s something that their competitors do? The best offers stop consumers in their tracks. They’re memorable, and they spread like wildfire. So in this article, we’re going to discuss what makes a great sign up offer and why brands should stop viewing them as a box ticking exercise.
Stop Thinking Short Term
A common mistake is when brands think of a sign up offer as a short-term thing. Even from the very top of a company, there is often an obsession with numbers and the success of a sign-up offer is measured by many in terms of how many new customers came through the door during a particular month. But what about the potential value of these customers? And what about the revenue from a customer who signed up two years ago? These are the types of questions businesses should be asking.
In terms of long-term customer value, the B2B space is the best place to look. SaaS brands almost always offer a free trial period with their products and even offer dedicated support during the onboarding process. That’s because they’re thinking long term. The value of a SaaS customer could be thousands of pounds each month and their lifetime value could be eye watering compared to the two week revenue a brand misses out on when offering their product for free.
Great offers create distribution
In today’s world, the best content gets shared far and wide, and businesses need to factor this into their thinking when putting together an introductory offer. Yes, a 20% off your first order might be the push that some consumers need, but it’s nothing we haven’t seen before.
Instead, try to offer something that sounds too good to be true. The type of offer that people screenshot and put straight in the group chat or the type of offer that becomes talk of the office. Take Snapfish for example, one of the world’s most popular photo printing brands. They offer their new customers 50 free photo prints every month for a year. It sounds absurd, but that’s why millions of people know about it.
And that’s the point: people who have never even redeemed the offer are aware of it. As a result, they’re aware of the Snapfish brand too and should they ever need a photo print or personalised gift, the chances of them becoming a Snapfish customer are considerably higher than if the offer didn’t exist.
Unknown brands need stronger offers
Offers certainly aren’t one-size-fits-all, and in truth, some brands are so powerful that they don’t need to offer any further incentive. The popularity of the iPhone means Apple doesn’t need to discount their product to get consumers to buy. A new, unheard-of startup trying to disrupt the smartphone market absolutely would on the other hand.
Despite this, we still see many startups going with the safe option. But safe isn’t good enough when you are a startup trying to disrupt. Brands must be bold, memorable and daring. Take a leaf out of Snapfish’s book and offer something that will have customers questioning if it is even legit.
Finally, never forget that an offer is only as good as its product. For new brands especially, there’s no point getting customers through the door if your product is going to let you down in the long run.
