Questions

Would offering discounts or free service incentives be enough to get potential customers to switch from my competitors and try my services instead?

I offer competitive pricing, but I try to differentiate myself from my competitors on other factors, so my services aren’t just treated like a “commodity." I know new customers would be happy and prefer the service I offer but I need to get them to actually try my service first.

3answers

Discounts or free service incentives are just part of the equation. You first need to capture your prospects attention with a value driven initiative. Ideally you want to build a level of trust and authority with that prospect through multiple touch points. By focusing on adding value first, you increase the likelihood that your prospect will care at all about your free discount or free service incentive.

I'm not sure what type of business you are in (B2B, B2C, Online, Offline etc.) but this determines the types of mediums that would fair best in delivering that value.

If you want to dig into the details and share some more insight about your business feel free to schedule a call.


Answered 3 years ago

The answer varies depending on the customer profiles, the product, the extent of competition and what the customers are really looking for. We can chat about this and come up with a tailored strategy.

But to answer your question in a generic way...

Your question mainly is about lowering switching costs. In short, if pricing is the barrier, giving it for free might or might not let customers try you out. And once they try you, it is really important for you to retain them with your value, or else someone else will offer the same service for free and the customers will shift.

Why would any customer want to use your services? They will, only if they know about you (see point 1), and if they see any value in your services (see point 2).

1. You need to make sure people know about you. Blogs, content, ads, be something your customers look up to. The next time someone knows who can solve the problem they have, they need to remember you.

2. Customers usually see if the product is valuable in terms of
functioning: (does it solve the problem?),
affordability: (does it solve the problem in an affordable manner?),
psychology: (does it give me a good feeling to use this? Like using dung vs mosquito repellants to get rid of mosquitoes)

Depending on the product, a few other factors come in.


Answered 3 years ago

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