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I recall a case where a chili sauce company secured a prime outdoor billboard at a low price. The CEO first used the space for an ad: "Billboard for lease, rent one million yuan per month." After a month, he replaced it with his own chili sauce ad, and the product became an instant hit.
Is it illegal to rob and deceive? You don't understand promotions: Rob: make customers pay immediately. Deceive: make customers love you exclusively.
Every shot hits, one strike one kill:
Kill Move 1: Enchanting Promotion In an age of information overload, consumer attention is priceless. Promotional publicity exists to enchant.
- Theory
- Where to enchant? Self-media, paid media, and word-of-mouth media; Audiences, customers, fans.
- How to enchant? Let the BIG IDEA dance in chains.
Kill Move 2: Capturing Hearts at the Point of Sale Customers suffer from choice paralysis; use simplicity to capture hearts.
Information that Captures Simplify so customers understand at a glance. Don't let non-customers see promotional info; I wouldn't buy sanitary pads even if my life depended on it. Don't let customers see non-promotional info; I can't remember any case studies. Make promotional info clear: stories, graphics, data, experts can guide.
Introduction that Captures Simplify so customers understand at first hearing. Two paradigms: Benefit + Support + Promotion Safeguard effectively kills bacteria because it uses Dipu protective antibacterial formula; today's offer is... Feature + Benefit + Promotion Haier water heater with anti-electric wall makes your home safer; today's offer is...
Rules that Capture Simplify so customers understand at first thought. For example, "All items X yuan" or "Zone X yuan" so customers don't agonize over which is expensive. For example, "Member Day on the 10th of every month" or "every Wednesday" so customers don't agonize over when to come. Don't let promotional rules exceed 3 sentences; customers have trouble counting.
If Not Necessary, Don't Add How to simplify at the point of sale to capture customers' hearts?
Kill Move 3: Brainwashing with Discounts Customers may not love real bargains; they love feeling they're getting a deal: Discount = perceived value = product value + price value + gift value + psychological value If all four lights are on, customers will take anything. How many lights do you have on?
Product Value See "Introduction that Captures" above.
Price Value Make customers feel the price is low.
Fake Low Prices Canned Coca-Cola 330ml—you probably don't remember it used to be 355ml. Southwest Airlines tickets for just $99? You probably didn't add baggage fees, meal fees, booking fees, toilet fees, pillow fees... Big Texan Steak Ranch: 72-ounce free steak—you probably don't want to get on the stage, can't finish it in an hour, don't know the 72-ounce anchor makes diners eat more, and don't intend to share with friends...
Odd-Even Pricing Prices ending in 9 boost sales by 24%. Reason: 9.9 yuan feels cheaper than 10 yuan not by 1 yuan but by a whole order of magnitude; 9.9 yuan looks more like a discount than 10 yuan. Case: Taco Bell once suggested 50 Cent change his name to 49 Cent for a new menu promotion; he sued, causing a stir... and Taco Bell's promotion succeeded.
Coupons The so-called birdcage effect: once you have a cage, you feel compelled to fill it; plus the participation effect—coupons earned from a previous purchase or interaction are hard to discard. Thus, coupons valid for 3 weeks are quite effective, with about 31% redemption.
Tiered Pricing Shifts customers from "buy or not" to "how much to buy." Formula: Entry tier: Spend N yuan/items, get X gift or X yuan off; Main tier: Spend N+M yuan/items, get Y gift or Y yuan off (Y≥4X); Anchor tier: Spend N+P yuan/items, get Z gift or Z yuan off (Z≥2Y).
Postscript You can first send coupons to lower the purchase threshold. N: slightly above average order value/average items purchased. Y≥4X: Based on diminishing marginal returns, 1 yuan of pleasure can be doubled with 4 yuan. Z≥2Y: A perfunctory doubling of pleasure to highlight the main tier.
Low price doesn't mean cheap: if you dare to discount, you'll get your legs broken. Discounts are three-tenths low; discounting is easy, but brand is hard—cherish it.
If you must discount: Replace 9.9% off with a lottery ticket, Replace 10% off with 10% free, Replace 25% off with second item half price, Replace 50% off with buy one get one free, Replace 60% off with buy three get eight.
If you still must discount: 15% off is the bottom line. (The human perception threshold is 15%. Discount quietly; don't get your legs broken.)
Gift Value Make customers feel they're getting more. Quantity over quality. "Buy 1 get 5" is better than "Buy 1 get 1"; even if the 1 is the real product and the 5 are samples. Multiple times over one time. Subscription gift packs are better than one-off packs, as they remind customers monthly. Relevant over irrelevant. "Buy razor, get shaving cream and blades" is better than "Buy razor, get toothbrush"; bundling as a set makes you unknowingly spend more on unnecessary items. Equipment over consumables. Give away a printer cheap/free, then sell ink at a high price. Cluster over single. Launch a series; how many of the 108 Water Margin cards from Little Raccoon do you have? Free over purchase. The former involves one purchase decision; the latter two. Branding over blank. Make the logo prominent; gifts have mixed fates; playing with Happy Meal toys reminds you of Ronald McDonald. Experience over physical goods. "5000 yuan travel fund" is better than "5000 yuan product"; no one regrets experiences, and no one compares them.
Psychological Value Make customers' emotions convince their rationality. These can work: Freshness A strawberry that tastes like gin and tonic, then BBQ sauce, then strawberry—how much more would you pay? If it's the original price, how fast would you pay?
Scarcity This promotion is as rare as a diamond; miss it, wait till next year. This limited-time discount, limited-quantity gift is as endangered as a diamond; miss it, wait till when? This limited edition is as precious as a diamond; miss it, never to return. You know diamonds and carbon are allotropes, but do you pay?
Restraint This co-branded product is supervised by your favorite star, with autographs and merchandise. Do you like it? Do you want it?
Social For example, buy with friends and share the discount. At this point, rationality is swayed by peer pressure, making it easier to please and pay.
Anchoring First recommend the best value product, then the most expensive, then the main product. Do you like it? Do you want it? For more emotional tactics, see how to profit through CRM (Customer Relationship Management).
How to make discounts feel valuable and brainwash customers?
Kill Move 4: Promotion Cycle Promotion doesn't end; it begins again: Repeat purchase begins: proactive membership cards, discount cards, free shipping cards; passive member emails, SMS, WeChat... Word-of-mouth begins: e-commerce reviews, social media shares. Participation begins: Haven't you seen Harley clubs, Xiaomi community, Apple fanatics? Data begins: sales volume, sales amount, traffic, average order value, conversion rate, customer feedback, churn rate, price elasticity... Insights begin: Do customers like it? Do they want it? Why? How to make them like and want it more? Promotion begins: clear theme, grand scale, fruitful results... The promotion cycle ends where it begins.
Kill Move N: No Move, No Form Where does promotion dance to enchant customers' souls? How to simplify at the point of sale to capture hearts? How to make discounts valuable and brainwash customers? The promotion cycle ends where it begins. Promotion is nothing but robbing and deceiving. One shot one kill, Holster your gun.
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