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We’re winding down our segment on the power of using premiums in your marketing. For a review ff where we’ve been, see my last blog post here.
The first thing you need to do it you haven’t already is find out the lifetime value (LTV) of your average client. You need this vital information about your business. Going into a marketing campaign without knowing your LTV, is like entering an archery contest and not knowing
where the target is located! How do you know where to shoot? How hard? How high? How low? Pretty tough.
For example, Let’s say, my average sale from a first time client is $100.00. I know that they’ll be worth $200 each year for 5 more years, the average length of a professional relationship in my business. That client is worth $1,100 to me. I now have a basis of where I can start my marketing
campaign.
It is also vital to know your average sale. $5, $50, $5,000? How much of that are you willing to give away for a purchase? Or an appointment? Do you close well? If so, you just need to get more appointments and premium may be just what you need to give you that bump. You simply need to find the premium to match your budget. If your LTV is smaller, use an appropriate smaller premium. If you have a large transaction size, a more lavish or expensive premium may be in order.
Here are some questions to ask yourself when adding premiums to your offer.
- Do(es) the bonus(es) have a high perceived value?
- Can you make bonuses by breaking out parts of your product?
- Are you going to use non-linked bonuses?
- Are the bonuses set up to be more desired than the product?
- Are you using bonuses to enhance purchase of upgrade (deluxe) product choice?
- Are you creating or buying multiple bonuses, instead of just one?
- Can you link bonuses to fast response? (time, limited quantity, first time buyers, etc)
- Are you offering unannounced bonuses either at purchase or after?
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