Are you finding that your promotions, the specials that you use to boost sales or bookings, most often default to a discount? Discounts are great, however, when used too often they send a detrimental message to your customers and undermine the value of your business or service.
Many times, businesses think they need to discount rates or services in order to attract folks or incentivize customers.
I challenge you to turn this thinking around.
When we only offer discounts we are, in essence, undermining our pricing structure and devaluing our product or service. We’re communicating that our business/product/service is not quite as valuable as we price it, hence the discount.
You’re probably in the business providing great service/product for the price you charge. I dare say, you might even like to charge more because what you do/sell is a lot of work and worth it!
Customers that “fit” your business will understand and appreciate what you have to offer. They’ll gladly pay full rate and feel they’ve gotten a fantastic deal.
What wastes your time in the long run is attracting the customers that are always looking for a “deal”. These customers, more often than not, are not going to be a long term fit your business. They won’t be the loyal zealots that you want. They won’t likely be falling into your Top 20 customer list.
Discounts are fun. I’m not saying to throw the baby out with the bathwater. Simply do not do them all of the time.
My Groupon & Living Social Experiment
How appealing this sounded in the dead of winter! Here we were, in the first years of building up a clientele at our boutique historic hotel, and in came the dreaded “shoulder season”.
Looking to boost visibility and sales I connected with Groupon and Living Social.
- Deeply Discount Our Rooms
- Add on Gifts and Perks for Guests
- Use their Platforms and their Giant Marketing Budgets to Gain Visibility
Holy smokes! The initial run was incredible, and we were excited! We were getting calls to book rooms, ordered and preparing gifts, and scheduling staff to work. We had big expectations of a boon to business, a surge in the surf that would propel us forward with more momentum.
When the rubber met the road here was what happened. A mixed bag.
VERY little profit.
Introduced many people to our hotel.
Guests that were, for the most part, looking for the “deal” and not the experience we were offering.
The vast majority of people who were purchasing were hunting for the “deal”; they didn’t convert to top 20, 30, or even into the to 50 best customer list.
It ended up being a heck of a lot of work for a “one off”.
Rather than Offering Deep Discounts and Undervaluing Your Product or Service, Add Value Instead
To help you come up with ideas, answer these questions.
How can I:
- enhance my customer’s experience?
- solve my customer’s problem?
- introduce a new offering, product, or service?
Enhance a guest or customer’s experience by either partnering with a business that has a complimentary customer base, or adding one of your own products or services as a motivational bonus to book or buy.
Examples:
- Local Winery Concert Weekend. To boost bookings, the hotel gives complimentary tasting room tickets and a bottle of wine to guests who book for that weekend.
- Partner with a shuttle service to offer a room and transportation package to a concert venue.
- Promote your new cider business by offering a growler now and five on the wedding date for couples who book during the month of October.
- During a wine maker’s dinner (of course have the wine maker there) offer the first ten seat bookings to be entered into a drawing for a private tour of the vineyard and reserve room with the winemaker
- Run a “pie a month” promotion and the first five to sign up receive a “baker’s dozen” (thirteen).
Enhance guest or customer experience.
Give people a time sensitive reason to act, book, buy, or sign up.
Give people a reason to brag about your business to others. Make them feel special. Give them an excuse to reengage.
I’ve seen great examples of this, what’s your success story? I’d love to share it in our next newsletter and highlight your business.
First one to do so will receive a $10 coffee card, compliments of yours truly.
Shoot me an email! info@kaizen.zone
Is this post helpful to you? If yes, then GREAT! Please let me know, share this post with a friend, and sign up for the newsletter by clicking this link.
Kaizen.zone
Your place for continual improvement and inspiration for your business and life!