Premium Caveats—Two to Know
Premiums are great way to incentivize your offer, no doubt about it. But while many mailers have used these response boosters to great effect, adding a premium requires a bit more thought than simply what to include and how to promote it, warn Dean Rieck, president of Westerville, Ohio-based copy and design firm Direct Creative, and Alan Sharpe, president of Sharpe Copy, a direct mail copywriting agency in London, Ontario. Here, they offer two things to heed when adding a premium to your campaign.
1) Keep your eye on your ROI. “Run the numbers,” Rieck says. Increasing net profit, not just response, is the point of the endeavor. Even if you’re turning more prospects into customers than ever before, if you’re not offsetting your costs, adding a premium is costing you more in the end.
2) Make sure it can be accepted. Check to make sure your target audience can accept premiums—particularly if you’re mailing a b-to-b offer, Sharpe maintains. “Some industries—defense, for example—forbid employees from accepting gifts or premiums from vendors.” No matter how great your offer is, it’s not a good response motivator if the prospect can’t keep it.