It’s All About the Offer: But Wait, There’s More
Depending on your program goals, you might want to consider deferred billing. Perlstein points out that while you experience more returns with this type of offer, you also get to build a database of customers/inquirers for future contact.
3. Soft Sells
For products on the more expensive side or that have a complex value proposition, the soft-sell offer is becoming more prominent.
This approach delivers product detail but no price, says Hawthorne, to generate leads that skilled telesales representatives will attempt to close. The basic call to action asks prospects to call for more information.
Soft-sell offers get a lower conversion rate than other DRTV pitches—about 20 percent. Generally, you want to secure a 50-percent to 85-percent conversion rate on DRTV offers, says Hawthorne. But soft sells can be made to work when the price point is considerably higher than the average DRTV product that falls in the $19.95 to $39.95 range.
4. Free Shipping
Born largely out of the e-commerce arena, free shipping has become a hot button for consumers. This offer can be used successfully to drive fast response, says Perlstein. Since the viewer knows she can go online and find free shipping offers and still not pay sales tax, this approach helps put DRTV offers on a level playing field with promotions in other channels.
The most dramatic challenge facing the DRTV industry is the rocketing costs of media. Both Hawthorne and Perlstein point to media costs as the reason one-step offers have become nearly extinct in DRTV. When a consumer calls in to order a product from a DRTV spot, she is likely to be solicited to purchase a host of add-on products or upgrade to continuous service.
Hawthorne adds that the need for strong back-end sales puts pressure on marketers to develop DRTV spots that present good deals to allow room for upsells on the phone order.