“Hey, just by walking into that store, they GAVE me one of these!”
When people get something for nothing (a premium—a free gift to entice the customer into the store), they love to brag about it. They tell everyone. And if they are offered a chance to get something for nothing just by being exposed to your merchandise, they’ll often jump at the chance.
And then, while they’re in your store, of course, while waiting to pick up the free gift, they often see something that they want to buy. Or maybe the gift is only given with a purchase.
Of course, stores are not the only place where premiums work. They work in just about any business. In addition to brick-and-mortar businesses, they work in direct mail; they work online; they work … just about anywhere when properly deployed.
But here’s the most important fact you need to understand about premiums: they typically increase response by “as much as” 30 percent, and in keeping with the OUTRAGEOUS message of this book … they are fun to use.
When thinking about using premiums, you always want to keep in mind that a good premium has a much higher perceived value than its actual cost.
When offering a premium, you want to purchase them in bulk at a reasonable cost but present them to your customers at the retail price.
For instance, at my menswear store, we would often purchase items for less than five dollars and then we would give them away with a retail price value of as much as $30.
Perceived value has real value, both to your customers and to you. By simply declaring that you are giving away a valuable gift, it brings more interest. Of course, you still have to give away something decent.
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OUTRAGEOUS resource Here are a couple of great places to find great quality premiums: Insert information for: * ASD/AMD: www.asdamd.com. * 3D Mailer: www.outrageous-advertising.com/3DMailings/. |
By now, you may have noticed that all of these advertising concepts fit together. And that’s especially true of premiums—it is an important component part of a bigger campaign.
For instance, at my menswear store, I gave premiums away, including a drip-free umbrella. But before I get to the premium, I’d like to quickly point out that it was sent in a very important-looking self-mailer … A WESTERN UNION MAILGRAM.
The reason I chose this format was to get my mailing into the A pile. After all, when you think about receiving something from Western Union, what do you think?
Most people are thinking that this has something to do with money. For years, Western Union telegrams were used to notify people that someone recently passed away and they were named in that person’s will. Western Union and money matters go hand in hand.
Western Union Mailgram. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
And so as you can see, this letter was sent by an actual Western Union Mailgram, and in it I am announcing a new four-day sale (a good deadline, see chapter 5) and offering two free gifts—free parking at the lot next door and an umbrella that I make sure is clear to see in a coupon highlighted by one word:
FREE
And then you read that you are getting a $20 umbrella. Plus, when you look deeper into the letter, you will see that I say, “This is arguably the best umbrella you will ever own.”
And it was a really wonderful umbrella, an actual high-end mini umbrella. But here’s a secret … I bought all these mini umbrellas for $2 apiece when the supplier decided to close them out. As you can imagine, if I said that, it wouldn’t generate nearly the perceived value that I was able to generate just by … well, adding a zero to what I paid for them.
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OUTRAGEOUS boost Never overstate the retail value of the premium because it can challenge the credibility of your offer. For example, in the case of the umbrellas above, they actually did retail for $20. I just happened to find a resource that wanted to get rid of them, so I bought out his entire stock at an unheard-of price. |
It’s really cool how one extra zero can change the perceived value of something. And it’s so simple to do.
And here’s the best part: it increased our response by 32 percent!
I offered a lot of different premiums in my menswear stores, and I did it in many different ways. But one thing I learned is that not everyone likes everything. So, as I’ve suggested in other areas of OUTRAGEOUS advertising, consider giving your customers a choice of premiums.
For instance, when representatives of two different menswear manufacturers were coming to my store in association with a special money-savings event, I sent out an oversized postcard.
Gage Menswear’s special event OVERSIZED POSTCARD. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
As you can see, this one-day event naming the manufacturers is part of the headline, but there is also a prominent offer for a premium—actually a “choice” of premiums.
FREE GIFT – YOUR CHOICE
And both are identified inside a big circle as a $25 value. The choice of a 35 mm camera or a traveling stationery set is an extra powerful way to use premiums. It appeals to different interests and customers, and yet anyone can recognize (because I pointed it out in a circle!) the value of either of these gifts.
OUTRAGEOUS boost The best way to present a premium is to include three things: (1) a photo of it (2) a description of it including features and benefits (3) the retail value |
Let me give you another example of how you can (and should) give people a choice of which premium they want. Several years ago, I did some consulting for a bank that was looking to increase their market share in one of their branches.
When I interviewed them, they reported to me that once they got one of their customer service representatives “face-to-face” with a prospect it usually resulted in acquiring some business for the bank.
So, I developed a multi-step campaign using FREE premiums as the key marketing strategy. The first mailing was sent out in a bank deposit bag since I wanted to make sure that their mail got opened. After all, what better use of a bank deposit bag as an envelope than using it to actually promote a bank?
Farmers & Merchants’ bank deposit bag. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
Of course a bank deposit bag will get opened in the BIG pile of mail because you’ve got to think that there’s money inside of it!!!
Then I developed a three-page sales letter using the OUTRAGEOUSLY effective techniques taught in this book.
Farmers & Merchants’ three-page new customer sales letter. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
And towards the bottom of page two and then continuing onto page three, you’ll see I gave the prospects a choice of six different premiums. Since the customer value was so high at the bank, I was able to offer someone the choice of any one of the following:
1. electronic digital voice recorder
2. three-piece pen, pencil, and letter opener in a wood and glass case
3. Kassel wall clock
4. Chefmaster eighteen-piece all stainless-steel barbecue set
6. Yorkcraft 15-piece highway emergency kit
As you can see, these aren’t the typical cheap toasters that a bank offers to new customers, but we were able to buy these in small quantities from a supplier, so they only cost a fraction of the retail value.
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OUTRAGEOUS boost Giving a choice of premiums instead of just one is a very powerful marketing technique, which is called “INVOLVEMENT.” In the case of the choice of premiums, you “involve” the prospect in thinking about which premium he wants versus whether he wants the premium at all. Typically involving the prospect will increase response even more. |
Consistency is important in all aspects of OUTRAGEOUS advertising, and that includes the use of premiums.
Giving something away is great. Giving something away that somehow connects with the message you are relaying is important so that the recipient doesn’t experience a disconnect. Let me give you an example of what I mean with the brown bag mailer.
Whenever I speak at a seminar on OUTRAGEOUS advertising, I always ask the audience how many of them have ever carried their lunch to school in a brown paper bag or have seen someone carry his or her lunch in a brown bag.
Of course, every hand in the room goes up.
So, everyone has seen a brown paper bag before, and they’re familiar with its use. Of course, few have ever seen a brown paper bag in their mailbox, and it will solicit a similar response as the diner placemat mailing (as seen in chapter 4), which is, “What’s this doing in my pile of mail?”
Of course this once again has to wind up in the recipient’s A pile, which is exactly what you want!
FRONT AND BACK of Gage Menswear’s BROWN BAG mailing. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
And as you can see on the outside of the brown bag mailing, I intentionally draw attention to the absurdity of sending a brown bag in the mail by writing right on the envelope(er, outside of the bag):
“They laughed when I said you’d need a great big bag to put all your new Menswear in.”
And so right away, you see it is a bag and I am making reference to a bag, plus I also not-so-subtly slip in the words “all your new Menswear.”
But then, as you see, is the inside of the bag with writing all over it. It’s a sea of information and precisely because it is written on a brown bag, you need to read more.
Gage Menswear’s sales letter printed inside the BROWN BAG mailing. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
On here you find all sorts of information personalizing it (preferred client), giving a deadline (4-day only), and making an offer (73 percent off!!!). Plus there are many details about specific merchandise and the deadline is repeated, but then, at the bottom, is a hand-drawn coupon for a FREE BONUS of a zippered garment bag with a little sketch of the bag next to it.
So, this brown paper bag I sent in the mail to get attention includes a coupon for a garment bag that I am using to get attention. Synchronicity squared!
You’ve got to give a reason why you are doing anything. That’s how OUTRAGEOUS becomes OUTRAGEOUSLY believable.
So I came up with this great idea for sending out a pretend envelope for film processing and then explaining why I did it.
FRONT AND BACK of Gage Menswear’s FILM DEVELOPING mailing. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
As you can see, I hint that I came up with the idea I am about to present as I was taking my film to get developed. I put this on the front of the film development envelope in handwriting. And that’s the hint.
But there’s one more thing on this envelope that you notice. It’s an extra. It’s a premium. It’s a circled note up on the right-hand side that says:
“FREE 35 mm CAMERA inside”
So, unlike other regular mail, this OUTRAGEOUS piece demands that you look inside.
And inside, you find this.
Gage Menswear’s sales letter printed inside the FILM DEVELOPING mailing. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
I give an explanation of how I discovered a two-prints-for-one deal and thought that it would work for suits or for sport coats. And this offer of a premium has a different incentive-laden twist in that it is given WITH A PURCHASE!!!
On the coupon, “FREE” is in big letters and “with suit or sport coat purchase” is in smaller letters. That was for the customer’s sake. In my mind, and in yours when you run such a sale fueled by a premium, the words “with a purchase” will be in bold.
When in doubt, pile it on.
That’s the rule in so much of OUTRAGEOUS advertising, and it works as well with premiums as it does with everything else. OUTRAGEOUS advertising really does produce OUTRAGEOUS results.
And what’s more OUTRAGEOUS than piling a premium on top of a discount for merchandise on top of a discount on gift certificates? I believe in the saying “the better the offer, the better the response.” And I also believe that the better you tease, the more they read.
FRONT AND BACK of Gage Menswear’s HOLIDAY POSTCARD mailing. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
By putting a silly image of myself on the card, I attracted attention, not to mention with a headline like:
Discover three MORE reasons why our competition hates us MORE THAN EVER this holiday!
That is a classic marketing headline that is sure to stir curiosity. Combined with my silly image, you are compelled to look inside. And just in case you are not, on the back is a circled reminder that a free gift offer is inside.
And inside is a repeat of the headline written on the postcard (headlines come in many different forms, see chapter 5) of three more reasons why our competition hates us.
Gage Menswear’s off er printed inside the HOLIDAY MAILING postcard. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
And the payoff is that those three reasons are coupons!
Look again at the offer and you can see that it is compelling because there is so much to it. You may not even know my store and you may have never been in Baltimore, but because of how I present this, I bet you wish you could have profited from this offer!
And as the retailer, I certainly profited from this offer. In fact, once I learned about the “power of the premium,” I used them as many times as I could.
Premiums can be used in more than just direct mail. They can and should be used in every media.
For example, several years ago I consulted with a client who was a dentist. He asked me for some advice in order to stimulate more referrals to his office.
After a bit of thought, I realized that perhaps the best time to stimulate referrals from his existing patients was when they were in the midst of having a dental procedure.
Think about it. When you’re sitting in a dental chair and your dentist or his hygienist has his or her hands in your mouth, you can’t move.
So in each operatory, I strategically placed a large sign on the wall where patients would have to stare at it the entire time they’re in the chair. The sign would encourage them to refer their friends and family members to the dentist’s office.
Dr. Ed Shaivitz’s REFERRAL SIGN in his operatories. You can see this in full color when you claim your FREE CD of all of the exhibits in this book by using the form on page 312.
Beneath the sign, I had a shelf installed with three gifts displayed on it. Patients could choose from:
1. a vibrating toothbrush ($97 value);
2. an exam, x-rays, and cleaning ($150 value);
3. a $50 gift certificate to a local Italian restaurant.
You shouldn’t be surprised to hear that more people requested the certificate to the Italian restaurant than the other two premiums combined even though each of the other gifts had a much higher value.
You also shouldn’t be surprised to hear that these signs tripled the referrals that patients sent to his office (and continue to do so today).
Sizzling Outrageous Summation
1) Premiums increase response by as much as 30 percent.
2) Perceived value of premiums is important, so make sure you tell prospects the value and show a photo with a description.
3) Giving people a choice of premiums typically will increase response.
4) Connecting premiums to your campaign strengthens your message.
5) Use premiums in your OUTRAGEOUS advertising every chance you get.
