Deciding between soft and hard direct marketing offer

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January 2001
DECIDING BETWEEN A "SOFT" AND A "HARD" OFFER

Next to choosing the right list, creating an effective offer is the #1 factor driving the success of your next direct marketing campaign.

Offers that are most effective, however, are seldom "reasons to buy" but rather "reasons to respond." This might seem like an obvious distinction, yet companies routinely feature purchase offers (save twenty percent, free installation, etc.) prominently in print and online campaigns that are plainly designed for lead generation purposes. Assuredly, the marketers behind the campaigns have no realistic expectation that people will actually buy the product instantly, but yet, their offer would suggest otherwise.

By including a "hard" offer, one that rewards a prospect if and only if he/she purchases your product, you assume three things:

that the prospect has an immediate plan to purchase (and you've timed your campaign perfectly)
that the purchase of your product or service requires little or no further information
that price (or free installation or whatever your offer is) is a significant factor in someone deciding to do business with you.

With the exception of catalog marketers and some B2C Web sites, clearly these assumptions don't apply in most cases. Conversely, however, if you opt for a "soft" offer (one that rewards the prospect for simply responding to your program), you accomplish the following:

you'll generate many more leads, since you'll capture responses regardless of whether your recipient perceives an immediate need, or where he/she is in the sales cycle
you'll create more sales opportunities by establishing a dialogue with a larger number of prospects, and then letting your sales force (or channel or Web site) "close the deal"

The rationale for hard offers is often given as uncovering the proverbial "low-hanging fruit," the prospects who are ready to buy NOW. But in the process, a hard offer can often scare off the much larger group of prospects who may not be ready to buy, who may not even yet perceive a need, but nonetheless are experiencing the pain/challenges/issues that your product or service can help solve.

If you insist on including a hard offer, either put it in the hands of your sales force to use at their discretion to close deals, or deliver it along with the information that the prospect requested ("Thanks for requesting your free fact kit on Acme.com. Sign up for our service by June 15 and save 20 percent.")