The Power of First Time Offers in Making Sales: Insights from Craig Andrews
We learn from Craig Andrews, founder of marketing agency allies4me, how to make a first-time sales offer that your customers simply can’t refuse.
Sales can be challenging, especially for Small Businesses, startups, and consultants. But what if there was a way to create an environment where customers want to buy from you? Enter the power of first time offers (FTOs). In this blog post, we’ll explore the insights shared by Craig Andrews, founder of marketing agency allies4me, on how to create FTOs that your customers can’t refuse.
What is a First Time Offer?
According to Andrews, FTOs are offers specifically designed for first-time buyers. They are often used for high-ticket items that require a high level of trust to purchase. FTOs can be simple or complex, and their goal is to bring customers in and move them closer to making a core purchase. For example, Columbia House Records used to offer 13 albums for a penny to bring customers into their record club.
Creating an Effective First Time Offer
Andrews recommends that FTOs deliver a disproportionate amount of value to price, targeting a 10x value to price ratio. The offer should solve a problem for the customer, but also leave some problems unsolved to encourage them to move towards the core purchase. Additionally, FTOs should naturally lead towards the core offer, which is where the business makes its Money.
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The Pricing Game
When creating an FTO, pricing is critical. The offer should be priced at an impulse purchase level, meaning it should be affordable and within reach of the customer’s budget. For B2B offers, Andrews suggests staying below $500, while for B2C offers, it should be below $100. The purpose of the FTO is not to make a profit, but to build trust and move the customer towards the core purchase.
FTOs vs. Discounts
It’s essential to note that FTOs are not discounts. Discounts are typically used for core purchases, but FTOs are designed to encourage customers to make their first purchase. Offering a discount on a core purchase can devalue the product or service and create a perception that the business is always willing to negotiate on price.
Conclusion
First time offers can be a powerful tool in driving sales for businesses. By creating an offer that delivers exceptional value, solves a problem, and moves customers towards a core purchase, businesses can build trust and create an environment where customers want to buy. Remember to price the offer at an impulse purchase level and avoid discounts on core purchases. With these insights from Craig Andrews, businesses can create FTOs that their customers can’t refuse.
Originally published at https://khudania.substack.com.
