Trial Offers vs. Discount Upfront?

by arrenv
7 replies
Hello,

I've just launched a new service and I'm trying to come to it with a fresh face to marketing. i.e. Trying new things out.

At the moment I'm trying to tweak the deal on a product that is delivered instantly, however provides services that last 12 months.

The original price of the product is $397 which people seem really happy to pay, as I said though I want to try some new things.

So my question:
Would you rather purchase a product straight up with say a 25% discount?

OR

Would you rather pay say $20 upfront as a trial for the first month, then get billed the remainder ($377) the next month if you are happy? If you are not happy though you get to keep part of product valued around $20, and will not get billed for rest.

I have done a little testing on these offers already, although not finding anything really conclusive yet.

Anyway, what is your opinion?
#discount #offers #trial #upfront
  • Profile picture of the author bgowing
    I would prefer the trial as I like to test drive before making the big purchase.
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  • Profile picture of the author Bill_Z
    Personally, if I had to choose one of those I would go with trial offer. Maybe you could add the discount code to your autoresponder series for people who didn't take the trial offer. That way you can hit them with both options.
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  • Profile picture of the author Daniel F. Lavoie
    I think you'll have a better conversion on the trial offer – but as always you should split-tests the two offers just to be sure but usually by removing the risk on the shoulder of your prospect usually result in a boost in conversion.

    Money is not just money - money is security. This is pretty hard to take your hard-earned money – or security - and give it to a stranger. This is why I tend to remove the risk on the shoulder of my prospect as much as I can because it becomes really easy to convince someone who’s on the fence with a killer offer.

    There are three types of prospect :

    1- Those who will buy no matter what.
    2- Those who are uncertain.
    3- Those who won’t buy

    Those in category 1 will buy no matter how your offer is structured (installment plan of 397$ or 397$ upfront)

    But by reducing the risk of your offer, you can get those who weren’t sure whether or not they should take your offer.

    You want to show your prospect that there is no risk buying your product because they can test it out for just a measly nominal fee. The lower the better.

    I would make it only 1$ for the first month instead of 20$. By asking less, you’ll increase the response rate and - even if it’s just a dollar – you now have a business-customer relationship with him.

    It will be easier to have him shell the 397$ by the end of the month if he has already given you money at some point.

    Hope this helps!

    Daniel F. Lavoie
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  • Profile picture of the author Diane S
    I would say that I like a trial offer on something in that price range. Can you not give a free trial of some section? Then when they are wow'd, they will want more? I have seen this arrangement several times with IM software, and I have ended up buying a few products that way.
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  • Profile picture of the author arrenv
    Thanks All,

    Slight swing to the trail offer here

    I like it and think it is a winner, will put together a campaign and keep you updated

    As for the initial offer, I would love to make it a $1, just has a nice ring to it. However there is a part of the product that is non-refundable in a B2B sense for me. So lowering it anymore and I would be running with a massive risk, that can easily be taken advantage of.

    I will do some number crunching and try get it down to $10 although not to sure how much of a difference $10 and $20 would make. Maybe another test for me

    Thanks again for your opinions.
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  • Profile picture of the author stevemarino
    If "people seem really happy to pay" $397 for something then personally I would be trying really hard to get people to pay $397 for my product instead of trying to convert a % of people signing up for a $10 trial.
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    • Profile picture of the author Daniel F. Lavoie
      Originally Posted by stevemarino View Post

      If "people seem really happy to pay" $397 for something then personally I would be trying really hard to get people to pay $397 for my product instead of trying to convert a % of people signing up for a $10 trial.
      People who would have bought - will still buy.
      People who were on the fence now have a gentle
      push toward becoming a customer.
      People who weren't interested - won't buy.

      >> Result = More money.

      Win-win situation for everyone.
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