Promotions: offering bonuses vs. discounts
Running occasional "special offer" promotions is a great way to increase sales of your products and services.
Most businesses offer discounts to their customers during the period. However, a more successful approach may be to offer bonuses rather than discounts.
Advantages of bonuses over discounts
Offering bonuses over discounts has several advantages:
Selecting a bonus
Selecting which bonus to offer to customers is an important decision. The bonus you select will need to be relevant and have value for your target market. For example, offering PDF creation software as a bonus when you sell word processing applications aimed at corporate users may have value for customers, while offering a card game with the word processing application may not.
Bundled product discounts
If you want to conduct an ongoing promotion, a method which is often very successful is to give customers the option of purchasing additional products at a discount when they buy them at the same time. For example, if you sell games online for $20 each, you might offer customers the option of purchasing additional games for $10 each if they add them to the checkout at the time of ordering. With this method, customers may purchase additional products from you than they would have otherwise.
In summary, the best type of promotions are those that result in customers spending the same amount of money that they usually would, yet provide the customer with more value.
As a final note, some countries have laws governing how certain sales, bonuses and promotions are conducted. If you reside in a country where such laws apply, you should always seek expert legal advice prior to planning your promotion.
This article was published by Multimedia Australia (http://www.mmaus.com) for the Software Industry Professionals Group. Copyright © 2006 Multimedia Australia Pty. Ltd.
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