Zeroing in on audience value

Once you’ve identified your target audiences, it’s time to look at what they value. Your value proposition (which we looked at in Week 1) is an articulation of what your audience values, and looks at your product or service through that.

But what of other audience value? What are your options?

Discounts

A great trigger of customer behaviour is saving some money, and the most obvious one here is the good, old-fashioned discount. Who doesn’t like it when something is on sale?

And discounts are better than reducing your pricing in the first instance. Reducing your pricing gives you nowhere else to go, and you lose the positive side of announcing something being cheaper than it usually is. 

There are a few options for you here:

• Percentage discounts: This is a type of discount where the business offers a percentage off the regular price of a product or service. For example, a business might offer a 10% discount on all purchases made during a certain period.
• Dollar amount discounts: This is a type of discount where the business offers a fixed dollar amount off the regular price of a product or service. For example, a business might offer a $20 discount on all purchases over $100.
• Seasonal discounts: This is a type of discount that is offered during a specific season or holiday. For example, a business might offer a discount on Halloween costumes during the month of October.
• Volume discounts: This is a type of discount that is offered when a customer purchases a large quantity of a product or service. For example, a business might offer a discount on bulk purchases of office supplies.
• Loyalty discounts: This is a type of discount that is offered to repeat customers as a reward for their loyalty. For example, a business might offer a discount to customers who have made a certain number of purchases over a period of time.
• Bundle discounts: This is a type of discount that is offered when a customer purchases a bundle of products or services together. For example, a business might offer a discount on a package deal that includes a hotel room, meals, and activities.

Upgrades

There are several upgrade strategies that you can use in your marketing efforts to encourage customers to purchase higher-priced products or services. As with discounts, they carry a sense of getting extra value through:

• Bundling: Bundling involves offering two or more related products or services together at a discounted price. By bundling products or services, businesses can encourage customers to purchase more than they initially intended, increasing the average order value.
• Up-selling: Up-selling involves offering a higher-priced version of a product or service to a customer who is already interested in purchasing. For example, a customer looking to purchase a basic laptop might be offered an upgrade to a more advanced model with additional features.
• Cross-selling: Cross-selling involves offering complementary products or services to a customer who has already made a purchase. For example, a customer who has purchased a camera might be offered additional lenses or accessories to enhance their photography experience.
• Loyalty programs: Loyalty programs offer customers rewards or discounts for making repeat purchases. These programs encourage customers to continue doing business with a particular company and can incentivize them to upgrade to higher-priced products or services to earn more rewards.
• Limited-time offers: Limited-time offers create a sense of urgency and can encourage customers to make a purchase before a deal expires. Businesses can offer discounts on higher-priced products or services for a limited time to encourage customers to upgrade.
• Free delivery: if your business can absorb delivery costs, this can be a very strong incentive to bring in new customers. This one is also not just about money – free delivery also saves the customer a significant amount of time.

Loyalty programs

The concept of belonging to something that provides you with exclusive value is another strategy you could consider.  A loyalty program is a marketing strategy that rewards customers for their repeat business and loyalty to your business.

The key to making it attractive lies in the word ‘value’. Your customers have to see the value in being loyal – they won’t just be loyal because it’s best for you. So your loyalty program could offer:

• Discounts and Rewards: Many loyalty programs offer discounts, rewards, or other perks to customers who make repeat purchases. These can include things like free products, coupons, or cashback on purchases. If you frequently purchase from a particular company, these rewards can add up quickly and provide significant savings over time.
• Exclusive Offers: Some loyalty programs offer exclusive offers or early access to new products or services. This can be a great way to get access to products or deals that are not available to the general public.
• Convenience: By signing up for a loyalty program, you may be able to store your payment and shipping information for faster checkout, making it easier to make purchases from that company in the future.
• Personalisation: you could consider using data and analytics to provide personalised recommendations and offers based on your customer’s past purchases and preferences. This can help you discover new products that you may be interested in and get better value from your purchases.