Creating an irresistible offer that sells and brings in more clientsUncategorized, 02/02/18
You’re familiar with the word “offer”, yes?
Business coaches, marketing blogs, even us; we use the word “offers” all the time because it is one of the most important components of your business model.
However, some of you are struggling with it. You have what you think are the best offers in the world, yet you are:
- Not getting clients
- Losing money on each offer
- Not seeing any substantial ROI
You’re not alone – struggles and problems happen to the best of us. We started our RBT line of gyms having to sleep in it as we couldn’t pay the lease, Steve Jobs had a ton of failed product launches under his belt, Richard Branson has more failures than successes in his career!
For service businesses like you and me, the importance of having a great offer is much, much higher than a product-based business. There are so many competitors popping up every single day and the only thing that sets you apart is….
An offer that brings in money and clients.
In this guide, we’re going to help you overcome that struggle and come up with an offer that:
- Generates leads almost automatically
- Generates recurring revenue for your business
The importance of having a great offer for your service business
Put yourself in the perspective of your target customer (which is something that you should do all the time).
You have a choice of roughly 10-15 businesses in your niche who are offering the same services. What is your factor in making a choice?
Logically, you would choose to work with a business based on two factors:
- The reputation of the business
- The cost of working with them
However, most business owners don’t realise that the reputation or cost of their services don’t really matter if you have a good offer.
An example of a great offer is the picture below.
What do we mean by that?
If you give you target audience an offer that is almost criminal to turn down, they are more than willing to work with you. With this, you achieve two things:
- You reduce the risks and doubts of your target audience. When a lead engages with you, this means that he or she is comfortable enough to work along with you. Overcoming this obstacle is a major step towards getting more clients and irresistible offers allow you to do just that.
- You put yourself in an authoritative position. Instead of you going to the client, the client comes to you which puts you in a position of power. You now have the upper hand in negotiations but of course, you have to make sure that you are constantly delivering value throughout the engagement.
Good offers also allow you to identify good leads and bad leads which we’ll cover on later in this guide.
The #1 mistake that service business owners do that kills their ROI
Here are two examples of offers for service businesses:
A $2499 per month retainer for a business consulting coach
A $49 3 day trial that guides business owners with their marketing problems
Which one are you more likely to convert on?
Obviously, you’d go for the 2nd choice as it has more value for your money.
The keyword here is value.
Here’s an example of a valuable offer that is not a high-ticket product.
Yes, we preach that your business model should be competing on value not price, but unless you’re Apple or a super well-known business, high-ticket offers are going to lose you money.
No sane person is going to spend 4 figures on a business that they know nothing about and that’s the number 1 mistake that service businesses owner do because they don’t feel that you are offering enough value.
There’s also another side to this story.
Another major mistake that people do is to take it to the extreme and offer too much value.
We’ve seen some business owners offer 20-30 hours of consulting per week for free just to attract clients. It may be a great move morals and marketing wise, but you’re essentially losing money by offering so much value without anything in return.
You could potentially kill your business before it even has a chance to grow.
The 3 things you must do before you come up with an offer
Going in with an offer immediately may work out, but it’s best to lay the foundations first before going in the market.
The 3 basic things that you need to have are:
- A sustainable business model
- A unique value proposition (UVP)
- A unique selling proposition (USP)
A sustainable business model
This advice resonates strongly with the earlier advice of not giving too much value at the start.
You want your offers to align with your business model so that your business is sustainable.
A sustainable business model has four common characteristics:
- A growing recurring revenue
- A good profit margin
- Costs are kept down as low as possible
- Average lifetime value per customer is high
Since we are running service-based businesses, the bulk of our income will be generated through our clients. Many business owners think that to increase profits, they have to get more clients.
While that’s true at the beginning of your business, you are going to realise quickly that getting new clients are expensive and the ones who are making you money are your existing clients.
We reference this image all the time because it’s so important to understand the average lifetime value of a customer.
80% of your income will come from 20% of your existing clients, so the best way to increase profits is to increase the lifetime value of your current clients.
The best way to do that is through a sales funnel which is basically a logical series of offers to upsell to your current clients.
A unique value proposition (UVP)
Your UVP is your business’ vision. Think of your UVP as your business statement or strategy.
Your UVP should be the idea that defines your goals, your identity, and basically any decision that you will do in the future.
For us, our UVP is simple: help our clients to build successful businesses. Your UVP could be very different from us but remember, it has to be a vision that you are willing to hustle for.
For example, if you are running a gym business like RBT, your UVP could be to change your client’s life for the better through workouts. If you are running a motivational speaking business, your UVP could be to motivate your clients to push harder in their lives.
Your UVP is directly correlated to your business identity; if you want to be regarded as an authority in your niche, push offers that do just that- your offers must be aligned with your UVP.
A unique selling proposition (USP)
Your USP is what sets you apart from the hundreds of competitors in your niche.
What sets you apart from Bob who runs the same business consulting agency like yours? What sets you apart from Lisa who is running a yoga gym like yours? What makes you so unique that your clients want to come to you?
If you don’t have one developing a USP is simple: think of the most powerful benefit that you can give to your clients.
So, if you’re running a gym like RBT, your USP could be that you can guarantee fast and effective results to your clients; it’s that simple.
If you struggle to come up with a USP, no worries. Follow this step-by-step flow to identify a USP for your business.
- Research your target audience and identify their pain points that can be solved by your business.
- Identify the pain points and separate it into two categories: a) pain points that are not solved by your competitors (a gap in the market) and b) pain points that can be solved BETTER by you (a disruption in the market).
- Craft several USPs in different forms; it could be through words or visuals – make it memorable.
- Gather feedback from your clients or leads about your sample USPs. The USP that receives the most positive feedback and is aligned with your UVP is the one that you should go with.
The two pictures are a great example of effective USPs:
Even if you are not the best (yet) in your niche, a strong USP is always going to differentiate you from your competitors. This means that you have the ability to compete against the top dogs, so make good use of that.
Your USP should always be:
- A benefit to your target audience. Nobody cares about how great or how long are you in business, they just care about what your business can bring of value to them.
- Resonate and appeal to your target audience. If you are targeting middle-aged men, then your USP should make them feel like they are connected to your business emotionally. This way, you earn more brand loyalty and trust which is always a good thing for your business.
- Short and simple. Keep your USP short and easy to understand. If you are using words to convey your USP, don’t go longer than 1-2 sentences. If you are using visuals, your target audience should understand what your business is about in a few seconds.
Once you are done with that, you’re ready to craft fantastic offers.
How to craft offers that sell: A step-by-step flow
1) Identify your core offer
Your core offer is the main offer that your business revolves around. In most cases, your core offer is the one that brings in the most money to the business.
Why do you need to identify your core offer?
The core offer will be integral to your sales funnel (hence, the name core). You’re going to leverage parts of the core offer to:
- Bring in qualified leads
- Upsell your existing clients
- Increase profits (or whatever your KPI is) to the business
Characteristics of a core offer
It needs to have a high level of commitment from your clients.
For a core offer to work, you have to make sure that your client is going to put in 100% of their focus on your core offer; you need them to be able to expend their resources (time, money, etc.)
Many business owners struggle with this part as they like they’re robbing their clients of their money and time – it’s not! As a business owner, your clients spend money on you for you to improve aspects of their life; remember, you are changing their lives for the better, so do that and don’t worry it.
When you worry too much about taking too much away from your clients, you will come across two problems: a) you charge too little which hurts the sustainability of your business due to lower revenue and b) you lower your authority as a business owner.
At our RBT gyms, we’re not worried about charging higher rates because we value ourselves and we are confident that we can pass on even more value to our clients. Lowering your rates is going to pass a signal to your clients that you are not confident in yourself, which will cause serious client retention issues.
Below is an example of a core offer with different tiers:
It has to be valuable to your client
If you are running a service business, your core offer would probably cost your clients 4-figures a month – that’s a lot of money.
How do you retain clients for 6-12 months, even years, when they’re spending so much every month? By giving them something of value and making sure their money is well-spent.
The easiest way to do that is by actually spending time with your clients and making them feel that you care. We have personal training time for our RBT clients, Travis spends time to talk to business owners personally, many businesses have departments onlyfor customer service and success.
If you aren’t doing these things, do it in the next 30 days:
- Call your existing clients and have a quick 10-15 minute chat with them. Ask them how things are going and know their problems. Your goal is to genuinely build rapport and help them with their problems.
- E-mail your clients or better yet, send a handwritten note to your clients and thank them for their business. Let them know how much you appreciate working with them.
- Meet 2-3 clients every month over a coffee break. You might think that this is a waste of time but remember the 20/80 principle; 20% of your clients makes up 80% of your profits – go and spend time to build your relationship with the 20%
This picture below is an example of the texts that TJ sends to his leads which really helps a lot with conversions:
You may have realised something; to have a long-term client, all you need to do is to be a friend and not just a business entity. Since people like you and me are running service businesses, we are dealing with real people with real emotions so building relationships is something that you must do every time.
Aside from building rapport, your core offer also has to make sense in terms of money spent. You have to give your clients these two things in your offer if you want to get more happy clients:
- An offer that can achieve a good ROI. The ROI will differ based on your business’ KPI but the client has to see something in return for their money spent. If you are running a consulting business, clients want to see an offer that can bring them results in the next 6-12 months. Gym business – clients want to see that they can lose 1.5 lbs per week. Your offer’s ROI does not have to be amazing, it only needs to justify the money that your clients are spending on you.
- High in value with perks and benefits. Your core offer needs to have perks and benefits. As we’ve mentioned earlier, we offer personal training services as well as personalised diet for in addition to their regular training program for our RBT clients, Spotify offers offline streaming and exclusive releases to new albums; things like these make your clients love you and they are going to come back month after month but remember, don’t stretch yourself too thin.
It has to be valuable to your business
Keeping your clients happy is great, but you also have to factor the impact of your core offers on your business.
For a core offer to work it has to:
- Bring in the most money to the business. You are going to make the most revenue out of your core offers; your most valuable clients will also engage with your core offers – keep in mind. If your main KPI is not money, then you can replace the KPI with a goal that is important to your business.
- Be in the “middle” of the funnel. What we mean by this is that your core offer should not be at the top of your sales funnel. The reasoning for this is that you can upsell your existing clients to bigger offers which increases the average lifetime value of your clients. Putting your core offer at the top of your funnel also plateaus your growth and you will have issues scaling your business past a certain point.
Step 2) Come up with several introductory offers
We endorse irresistible offers all the time because its effective and its much, much cheaper at generating leads for your business.
What do we mean by irresistible offers?
Literally, it is an offer that your clients cannot turn down because it’s that good; think of it as a bait that hooks your target audience to try out your services.
Here’s an example of an irresistible offer by Paddy Power.
Coming up with irresistible offers are a struggle for most business owners because they find out that:
- It’s not attractive enough which does not bring in a good amount of leads
- It’s too generous to the point where business owners are actually losing money for each new lead
- It’s too similar to the core offer which, again, leads to issues in sustaining the business
We’ve come up with a simple way to come up with an irresistible offer.
1) Break down your core offer into major parts or pieces
Think of this step as taking a small bite off a cookie. You want to offer your target audience a part of that cookie but not the whole cookie.
You can break down your core offer into major parts which makes crafting an irresistible offer easier. Let’s say that you are a business consultant and your core offer includes coaching businesses with digital marketing. You can break it down into major parts like:
- Lead generation training and strategies
- Social media management and marketing training
- Copywriting training and techniques
Simply put, break down your core offer into major components or areas of focus.
2) Break your components down even more
Next, you have to break down your major parts in smaller pieces. Going with the business consulting example earlier, you could have something like this going for you:
- Lead generation training and strategies – Online sales funnels, Facebook and Google ads, content marketing for lead gen
- Social media management and marketing training – Getting engagement from social media audiences, getting PR through social media, how to use social media for brand exposure
- Copywriting training and techniques – Writing copies for cold traffic and warm traffic, writing ad copies for Google and Facebook, writing powerful e-mails that convert
Breaking down your major components achieves two things:
- It allows you to have more irresistible offers to test the market with.
Not everything that you do with your business is going to be a hit and that includes your offers too. Having many small components allows you to really test the market with each offer to find the one that works best. At the same time, you’re also not limited to only one offer which can limit the scaling of your business.
- It allows you to target more people and get more leads
You may find out that your offers attract different audiences e.g a business owner who is struggling with social media and another one who needs help with copywriting are going to react differently to your offers. Having a variety of offers allow you to target your audience who may not be aware of your services. Of course, if a topic is way beyond your abilities, it is better to lose some leads than to under-perform.
3) Choose the offers that might work best for you and your target audience
If you’ve done market research, then this step should be a piece of cake. If not – no worries.
Now that you have a list of components to craft irresistible offers, it’s time to find out which one will work the best.
Obviously, we cannot be 100% sure that an offer will work great, but there are some things that you can do to boost your confidence.
- Get feedback from your existing clients or leads
If you have existing clients already, ask them what’s the best part about your services. You’ll get different answers but you can easily find out the common theme that keeps your clients happy.
You should also ask what are their biggest problems as you will be able to figure out the major concerns in your niche.
If you are running a gym business, for example, your existing clients may say that finding a gym that has bodyweight training equipment is hard – you’ve got your potential irresistible offer.
- Get insights from your target audience
Now, some of you may not have any clients or leads yet and that’s understandable. A great way to gather information without any clients is to hang out where your target audiences hang out.
Some examples of these include:
- Local Facebook groups (a very under-utilised resource)
- Online forums or discussion boards that are based on your niche
- Meet-ups and local networking events
- Online communities such as Reddit
Remember, if all things fail, Google is your best friend. Here are some search queries for you to Google for if you get stuck:
- how to (insert a popular topic in your niche)
- (a topic of your niche) problems
- need help with (a topic of your niche)
These search queries should you give some insights on what your target audience really needs which can give you some help on deciding which offer will work best.
4) Sort your list of irresistible offers
Once you’ve got a list of offers that you think are great, you’ll want to sort and separate them into different categories. We recommend separating it into these categories:
- Sort by type of audience: You’ll want to separate your offers based on the area that you targeting. If you are running a gym business for instance, you’ll want to separate offers that target people who need help with social media, people who need help with copywriting, and people who need help with PPC campaigns.
- Sort by value: You can also decide to sort your offers based on which one has the highest potential or ROI. If offer A can bring in a higher ROI, then you’ll want to give that offer more focus.
- Sort by expertise: Obviously, you’ll be experienced in every aspect of your business, but if you are very good in a certain area, you can give that offer more focus.
Just in case you want a visual look on how to craft irresistible offers, here’s an infographic by us to help you with the process:
Step 3) Craft your irresistible offers
When you’re done with your list of potential offers, we’ll move on to the exciting part: actually crafting the offers.
This section is broken down into 3 parts
- Channels to promote your offers
- The medium of your offers
- Creating irresistible offers
1) Channels to promote your offers
There are several channels for you to promote your offers on
- Online/digital marketing (Facebook, Google, etc.)
- Traditional media (TV, print ads, etc.)
- Direct marketing (meetups, sales letters, networking, etc.)
Most of you already know that digital marketing is the way to go in 2017 as it is cheaper and brings in more results than every other marketing channel.
Digital marketing is powerful that even giant brands (Adidas, Pepsi, etc.) are actually cutting down on traditional marketing to pump more money into online advertising.
For us, all of our advice and training are specifically for online marketing as it works very well for service businesses like yours. There are plenty of online platforms out there for you to choose such as:
- Google and Facebook (the two big ones)
A word of advice for business owners: don’t do the mistake of trying to advertise on every single online platform out there.
It’s best to focus on 1-2 at a time; you’re not missing out by skipping some social media platforms, it’s just a more efficient use of your time.
The key here is to find out where your target audience lurks around. The answer to that?
Google and Facebook.
Almost everyone is using Google and Facebook, so these two platforms should ALWAYS be the place to promote your offers. These two giants also offer a very advanced ad platform which means that you’ll able to target your offers easily with better efficiency, something that is not always present in other platforms.
Choosing the medium of your offers
This is where you can get creative; many business owners fall into the trap of just doing one thing that they are comfortable – don’t!
If you only used to text and image ads previously, do more video ads. If you’ve done video ads already, try podcasts.
For your reference, here are some types of mediums for you to market your offers:
- Text and image ads
- Video ads
- Podcasts or audio files
- Online contests and events
Step 4) Set up your landing pages and ad copies and promote it
We’ve covered this topic extensively in our previous blog posts (which you can check out on our website)
We’ll give you a brief run through of what to do in your landing pages and ad copies
Setting up landing pages for your offers
While you are to design your landing pages, the best one usually have:
- A clear description of what your offer is and how it benefits your target audience
- A clear description of who you are
- A clear description of how to take action on your offer
a) A clear description of what your offer is to your target audience and its benefits
Your landing page has to tell your target audience what you are trying to solve for them clearly.
A rule of thumb that we have here is that if a visitor does not know what your offer is after 5 seconds, then you’ll have to rework your landing page.
Your landing needs to have a compelling and benefits-driven headline. It has to:
- Tell your visitors how your offer solves their problems
- Engage your visitors emotionally with a headline that relates to their problems
Here’s a good example by Unbounce.
Next, your landing page needs to explain what your offer does in terms of benefits to your visitors.
It has to:
- Explicitly state the problems that your offer will solve for your target audience e.g get more leads in less the time, lose more weight without a diet that is too restrictive, etc.
- Explain why your solution is better than your competitors
- Explain why your solution is unique and different than everyone else in the industry
Remember, it doesn’t have to be all-words; you should also include images and videos if you can – make your landing page visually appealing.
b) A clear description of who you are
Your visitors also has to know who are you are; they need to know how credible you are and if they can really trust your offer.
An easy way to do this is to include a section in your landing page that basically is a short summary of your business. Think of it as an “About us” section.
You can also add testimonials from previous clients or media mentions to further prove your credibility.
c) A clear description of how to take action on your offer
The most important part of your landing page is the section where your visitors take action.
Two tips to remember:
- Your call-to-action button or section should be very visible; make it contrasting in colour or larger in size
- Your call-to-action has to be easy to take action on. Do not lead your visitors through a complicated process – all you need is an e-mail, name, and contact number.
A good thing to do is to summarise your offer at the CTA section to remind your visitors of your offer’s benefits.
Crafting ad copies for your offers
There can be types of mediums for your offers but we’ll focus on Facebook ads for now as it is the easiest and most effective form of advertising for service businesses.
a) Make an effective Facebook ad copy
Crafting ad copies for Facebook is no different than one for a landing page, you just have to keep it shorter.
The basics of copywriting applies to Facebook ads:
- Make it compelling and attractive to your target audience
- Give them a solution to their problems
- Give them an incentive to take action
We like to use the AIDA principle as the basis for our Facebook copies;
The principle behind it is simple.
Attention – You want to call out your audience or get them to notice you; the easiest way to do that is by literally calling them out in your ads e.g “Victoria small business owners”.
Interest – Once you’ve got their attention, you need to drum up their interest in your offers. How do you cause interest? By including your target audience’s pain points in your ads. Everyone wants to know how to solve their pain points which is why it causes so much interest in your ads.
Desire – You have to drive up the desire to take action in your target audience. The best way to do this is by offering a promise or solution to their pain points. For example, if you’re running a marketing business, you can drive up interest by including phrases like “Do you want get 2x more clients in half the time?”
Action – Finally you’d want to include a call-to-action for your target audience. It can be as simple as a “Click here to learn more” prompt; just make sure that there is something for your readers to take action on be it a video, link, or sign-up form.
Here are some examples of actual ads that we run on Facebook which got us a good number of leads:
b) Promoting your offers on Facebook
The basics of promoting your offers on social media is simple; but getting it right is the real challenges.
We assume that you already have knowledge on how to utilise Facebook ads to promote your offers but we’ll leave a summary for you as reference (these tips also work for other ad platforms):
- Make sure that your targeting is correct. You have to make sure that you are targeting the right local audience for your ads; having the right audience targeting reduces your cost per leads as well as increasing the likelihood of them converting on your offers.
- Make sure that you start on a small budget first. Don’t go and spend up all of your ad spend in one day – keep it low and increase it slowly. A rule of thumb in increasing your ad spend is to increase it by 20-30% each time, no more than that.
- Split test your ads – Remember the part about having multiple irresistible offers earlier? You should also multiple ads to test which one works best. You should never stick to one ad for a long time as the effectiveness of it goes down over time.
- Set up retargeting ads – The average conversion rate of a landing page is at 15-20%. That means 1 out 5 page visitors leave without taking action; you’ll need to re-engage their interest by using retargeting ads. Acquisio has a great guide on setting up retargeting ads over here.
Now that you’ve got a kickass way to generate irresistible offers for your business, it’s time for you to go out there and try it out on your own.
Remember, make your offers:
- Valuable to your business and your clients
- Easy to take action
- Align with your USP and UVP
For more guides like this, head over to our blog where we cover the things that you need to know to grow your business effectively.
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