Offer first-time customer discounts to encourage trial
First-time customer discounts are amazing for bringing in newbies to try your product or service. They’re super attractive but can also eat into your margins if not managed well.
Tools
| Name | Description | Pricing | Ease of Use |
|---|---|---|---|
| Drip | Drip is a sophisticated marketing automation platform designed to enh… |
Paid Only
from $39.00/mo
|
Moderate
|
| Emma | Emma is a sophisticated email marketing platform designed to enhance … |
Paid Only
|
Moderate
|
| HubSpot Email Marketing | HubSpot Email Marketing enables marketing professionals to design, au… |
Paid Only
|
Moderate
|
| Keap | Keap is a dynamic marketing automation platform designed to streamlin… |
Paid Only
|
Moderate
|
| Klaviyo | Klaviyo is a robust marketing automation platform designed to enhance… |
Paid Only
|
Moderate
|
Objectives
| Name | Description |
|---|---|
| Customer Acquisition | Customer Acquisition is the process of attracting and converting new … |
| Sales | The marketing objective 'Sales' focuses on increasing revenue through… |
| Traffic | Increasing website traffic is a fundamental marketing objective focus… |
Demographics
| Name | Description |
|---|---|
| Entrepreneurs | Entrepreneurs are typically characterized by their innovation, risk-t… |
| Gen Z | Generation Z, born between 1997 and 2012, is a cohort characterized b… |
| Low-Income Earners | **Professional Description for 'Low-Income Earners'** Low-income ear… |
| Millennials | Millennials, or Generation Y, are individuals born between 1981 and 1… |
| Newlyweds | Newlyweds are a dynamic demographic, typically between their mid-20s … |
Promotes
| Name | Description |
|---|---|
| App | The 'App' is a cutting-edge digital platform crafted to enhance user … |
| Digital Product | A Digital Product refers to an intangible asset distributed in digita… |
| Mobile App | The mobile app is a dynamic digital tool that marketers utilize to ef… |
| Physical Product | The Physical Product represents a tangible good that marketers have t… |
| SaaS | Software as a Service (SaaS) is a cloud-based service where instead o… |
Sectors
| Name | Description |
|---|---|
| Arts and Entertainment | The Arts and Entertainment sector is a dynamic industry encompassing … |
| Education | The Education sector encompasses institutions such as schools, colleg… |
| Financial Services | The Financial Services sector is a vital part of the global economy, … |
| Food and Beverage | The Food and Beverage sector is a vital part of the global economy, e… |
| Healthcare | The Healthcare sector is a critical pillar of the global economy, enc… |
Strategy
| Name | Description |
|---|---|
| Customer Acquisition Strategies | Attracting new customers involves various tactics like ads, social me… |
| Loyalty and Rewards Strategies | Encouraging repeat business through loyalty programs and rewards can … |
| Pricing Strategies | Setting the right price involves balancing profitability and customer… |
Sub-strategy
| Name | Description |
|---|---|
| Referral Marketing Strategy | Encouraging existing customers to refer new ones by offering incentiv… |
| Customer Loyalty Strategy | Encouraging repeat business through rewards, excellent service, and p… |
| Points-Based Loyalty Strategy | Rewarding customers with points for purchases and engagement, which c… |
| Tiered Loyalty Strategy | Rewarding customers based on different levels of loyalty, with higher… |
| Market Penetration Strategy | Increasing market share for existing products through tactics like co… |
Technologies
| Name | Description |
|---|---|
| Email Marketing & CRM |
Channel
| Name | Description |
|---|---|
| Email marketing is a versatile tool for reaching both businesses and … |
Sub-channel
| Name | Description |
|---|---|
| Newsletters | Newsletters are an effective way to keep your audience informed and e… |
| Promotional Emails | Promotional emails are a direct way to reach customers with targeted … |
| Transactional Emails | Transactional emails are a reliable way to engage with customers thro… |
Quick Facts
Channel
Advertising Type
Difficulty Level
Intermediate
Estimated Cost
Medium
Time to Impact
Short (Weeks)
Tags
B2C
Paid
Pros
- Encourages Trials: Offering discounts lowers the barrier for first-time customers, making it easier for them to try your product or service.
- Boosts Sales: Discounts incentivize purchases, often boosting immediate sales and driving short-term revenue growth.
- Customer Acquisition: It’s an effective way to acquire new customers and grow your customer base.
- Competitive Advantage: Discounts can give you an edge over competitors who may not be offering similar incentives.
- Customer Data Collection: This tactic helps gather valuable customer information like email addresses and buying preferences for future marketing efforts.
- Brand Awareness: Special offers can create buzz and increase awareness about your brand among potential customers.
- Cross-Selling Opportunities: Once a customer makes an initial purchase, it’s easier to recommend additional products or services.
Cons
- Margin Erosion: Regular discounts can erode profit margins if used too frequently or without proper planning.
- Customer Perception: Customers might only buy when discounts are offered, potentially making it harder to sell products at full price.
- Short-Term Strategy: This tactic often focuses on short-term gains rather than long-term customer loyalty.
- Customer Expectations: Discounts can raise customer expectations for lower prices, making it difficult to increase prices later on.
- Potential Abuse: Discounts may attract deal-seekers who are not loyal customers and are looking to exploit offers.
- Brand Devaluation: Frequent discounts can reduce the perceived value of your brand or product.
- Operational Complexity: Managing discount campaigns can add operational complexity, requiring additional time, effort, and resources.