The Value of Offering A Free Bonus…When Done Right.

Offering a free gift/bonus with a purchase is not new.

But it amazes me how few business owners get it “right”.

The majority of business owners always offer “low perceived value” bonuses.
…and what’s really funny is, they think customers are swayed somehow, by a free bonus that no one cares about.
Just imagine: If You Offered Your Best Customers A FREE Vacation Worth $300, How Would It Change Your Business?
family beach

Case Study: I have a client, we’ll call him “John”.
John owns a service business.  He provides valuable services to car owners. The problem?
His customers are very price-sensitive and always call around to get the best “deal”.  Which really means, they call around for the cheapest price and choose whoever promises them the lowest price.  Sound familiar?
Together with John, we figured out which customers he loves most AND what service he wants to sell the most of.
Yes, it’s true: when some one gives you money for what you’re selling, it’s a good day – BUT there are some customers who are better than others.
So, with John’s Ideal Client Profile (I.C.P) in hand, we set about offering a FREE bonus just those customers who want to buy that specific service.  The free bonus?
It was an amazing, FREE vacation worth $300.  His customers got to choose from a dozen different destinations, coast to coast, all at resorts that were “3 star” and above.  Let me tell you, each vacation package was so incredible, I would have been proud to take my family to any of those great locations.
Now, before you get too far ahead of me, I worked a deal for John, so he didn’t pay anything close to $300 for these free vacation packages.
Since he’s giving them away (even with a purchase), we had to make sure it worked for his business model and that the numbers made sense.
Then, in an extremely brilliant move, John made an offer to his most “Ideal Clients”.
The offer looked something like this:
If you purchased one of John’s highest end services (that we picked ahead of time), with a cost of right around $300, then you would receive a FREE vacation package worth about $300.
So to John’s customers, the free bonus made his service offer almost free.
family-vacation-sm

If you’re wondering how this free bonus was received, let me tell you, I was there: His customers and prospects were absolutely BLOWN AWAY.
I sat there and watched his client’s eyes get as wide as dinner plates – some were speechless.
Lesson #1  John and I both knew, he instantly won a customer for life right then and there…a great retention strategy.
Lesson #2  The added bonus for John was: His customers went home to tell their friends and family about this vacation they were just given…a great word of mouth strategy. Talk about killing two birds with one stone!
Just a little bit of thought as to how to position this free bonus radically changed his business…and you can do the same thing!
Just keep in mind one thing, it doesn’t really matter what the free bonus is. As long as the perceived value is there, clients and prospects will gladly line up to purchase from you.