The friends and family sale has long been used by the retail
industry as a advertising tool to generate customers. However, I have very
rarely seen businesses outside of the retail industry use the strategy. Well,
why not find a way to make this sale a part of your advertising strategies.
After all, the chances are pretty good that your current customers know other
people who are similar to them that could use your product or service.
However, before you run out and try this strategy I must give you
a word of caution. See, over the years, I have noticed that if you run this
sale the wrong way, then the friends and
family sale will just be a huge flop. After much investigating and testing in
my own business, I have come to the conclusion that the large majority of time
when we promoted our friends and family sales, we mostly got prospects who
would have bought days or weeks earlier if we would have just given them the
discount earlier. This completely defeats the purpose of having the sale. In
fact, we were only risking losing the customer and delaying our profits because
we were discouraging the customer from buying today, so that they could get the
better sale price later.
So, here's the solution. Create ads that clearly state that the
prospect can only get the discount only if they bring friends and family
(prospects) with them to the sale. You can even tier the discount to handsomely
reward those prospects who bring more friends and family. For example, give a
five percent discount if they bring one person, ten percent discount if they
bring two, and a fifteen percent discount if they bring three and a whopping
twenty percent discount if they bring four people.
However, the key to the entire sale is that the friends and family
must fill out a simple little contact information form when they visit your
showroom. You can even create a drawing that they are being entered into a
contest to win prizes or cash. When you let them know why you're gathering the
information, they will not feel as awkward giving you their information. At the
very least, this allows you to build your marketing database, and you may even
get a sale or two from the friends and families at the sale, but the benefit is
that you get to grow your prospecting list.
Finally, make sure the terms of the friends and family sale are
well laid out on your website or on the advertisement itself. This will allow
your customers to really play the game to get a bargain for themselves while
bringing you plenty of potential prospects.
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Tuesday, February 17, 2015
How To Host A Very Profitable Friends And Family Sale
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