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April
2000
USING FREE GIFTS &
OTHER PROMOTIONS WISELY
Sometimes a good list, sparkling creative, and a compelling
offer aren't enough, and prospects need an extra inducement
to get them to respond to your campaign. At times like
this, offering some type of special incentive -
a sweepstakes drawing or a free gift, perhaps -
can make a big difference.
Promotions need to be approached with caution, however.
Here are some tips to keep in mind:
- Always
test a segment of your campaign with no special offer.
By doing so, you'll establish a benchmark against
which to measure what effect the promotion had (if
any), and whether the increase in response outweighed
the cost of the promotion.
- Be
wary of making your promotion "open ended." In the
Internet era, even a promotion that's time-limited
("register by April 30 ...") means thousands,
if not millions of people could potentially respond.
If your promotion involves a free gift, no matter
how small the cost, place a limit on the total quantity
("be one of the first 500 to respond ...")
- Promotions
often increase response at the expense of lead quality.
As such, they're best implemented when your priority
is lead volume, not quality, and when you have structured
follow-up campaigns in place to maximize the value
of every response.
- You
can minimize the negative effect that promotions have
on lead quality by making the offer relevant to your
product or service. Offer a discount for first-time
buyers, or a free book that addresses the same issues
that your product solves (for example, a book on job
search strategies to promote an employment Web site.)
- On
the Web, it's sometimes best to only introduce the
special offer on the back end of the campaign, at
the splash page. In this way, you'll generate only
those responses attracted by your core message, and
the free gift will increase your conversion rate -
the percentage of people who actually fill out your
response form.
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