Most people think their premium needs to be something they sell. This is a myth that needs to be addressed and debunked right now. In almost all instances, a premium unrelated to your product will outperform a premium that IS related to your business.
Here are a couple examples. For years in one of our businesses we have sent out a free Big Key Calculator to responders to our direct mail. I sell to independent retailers and I don’t sell calculators! Yes, they could use it in their store (or home, or wherever), but it is in no way related to what I want to offer them.
For years, Sports Illustrated gave away sneaker phones. This is in no way related to what Sports Illustrated offers, a weekly sports-news magazine. They simply matched the premium with their target demographic. They didn’t offer two month’s free of the magazine, or a free report about sports. IT’S A CHEAP, BARELY SERVICEABLE PHONE! It’s not a product they sell!
Have you ever received an offer from Omaha Steaks? They almost always offer a premium with a purchase, and it’s an unrelated product. I don’t know about you, but I sure don’t want a free report on how a cow goes from the pasture to my plate. However, a free meat thermometer might be just the ticket to make sure my steak is nice and rare!
You should know enough about your target niche to offer an appropriate premium. Some will obviously work better than others. If you’re selling a high end, high priced luxury car, a $25.00 gift card to Wal-Mart probably isn’t the right premium. However, a leather briefcase with a perceived value of $125.00 (your actually cost is probably less than the $25.00 you’d spend at Wal-Mart) could probably do the trick!
Selling the second interest can be included in many sales processes, but it extremely applicable with premiums. How may Cracker Jack boxes did you buy as a kid (or for your kids) just to get that cheap little toy inside, or how about McDonald’s Happy Meals just for the prepackaged toy?
Premiums can Boost Your Referrals
As marketers, you know (or should know), that you will almost always get a better ROI from your current clients. Knowing this, you can ask your current clients to refer their friends, family and business associates to you! You can offer a FREE gift for each new client they refer. The best place to start to get new business is to ask your current happy and satisfied clients! Offer them something of high perceived value, and they’ll refer their friends to you!