Skip to main content

How Premiums Work Better Than Coupons and Discounts

What is a Premium?

A premium is anything of value that you offer a prospect or client in exchange for taking an action that you direct them to. This could include an incentive or a gift.

The right premium could encourage someone who might otherwise set aside the mail to act now instead of later (or not at all). This works especially well when there is a limited quantity available or you state a deadline for responding. An example of this would be offering a Starbucks coffee gift card in exchange for filling out a survey or submitting an honest testimonial.

Premiums can also be used to generate demand for your products and services, to reward fast response, or to boost the size of an order.

Why Does a Premium Work?

Everyone wants something for free, but they also want to reward those who rewarded them.

Premiums work because of the "rule of reciprocation" made famous by Robert Cialdini, a psychologist and author of Influence: The Psychology of Persuasion. According to Cialdini, "We are obligated to give back to others the forms of behavior that they have given to us. Essentially, thou shalt not take without giving in return."

How Premiums Improve Direct Mail Response?

Any direct mail campaign includes the following components:

  1. The Mailing List

  2. The Design

  3. The Copy

  4. The Offer

  5. The Print & Packaging

  6. Timing & Delivery


How do premiums fit into this? They are part of the offer.

Most premiums have low costs but a high perceived value. Although premiums add to the cost of a mailing, the gain in response and the attention they provide outweigh the additional expenses.

Premiums can be delivered in several ways, depending on the goals of the campaign. The premium can be delivered as a front-end offer, when you want your mailing to stand out. It can also be delivered as a bonus or incentive, if the recipient responds to your call to action. In this case, a photo or graphic image of the premium would work well.

Examples of premiums can be found in daily life outside of direct mailers. The McDonald's Happy Meal is often purchased because of the toy premium inside rather than the food. Many cereal boxes are sold because of the trinkets inside as well. Premiums are often used at sporting events when the ticket attendant hands out a calendar or a bobble head to the first 1,000 attendees. Premiums are also found in many non-profit mailers, where a free set of mailing labels with your return address printed on them are included, along with the request for a donation. Our society at large is conditioned to appreciate premiums.

Premiums can also be used to encourage your existing clients to give you referrals and testimonials. They can be used as great reminders to motivate your best clients to help you get more customers.

But will premiums work for you?

Remember that your premium is only one part of the direct mail package. You must still follow best practices and essential principles of direct mail. Although a premium can improve results, premiums alone do not guarantee success.

Just because premiums work for many companies does not guarantee that they will work for you. Test different premium offers, and keep careful records of your costs and sales (or leads) generated.

Although the recipients are not obligated to respond, history, case studies, and human psychology indicate that offering premiums can significantly boost your response rates. Direct mail + a premium can be a winning combination to boost business for your company.

Comments

Post a Comment

Popular posts from this blog

5 Print Marketing Pieces that will Woo Your Corporate Clients

Some of the most effective ways of communicating value don’t require looking up a website or downloading a mobile device teaser program. In fact, non-digital marketing activities win over corporate clients regularly without ever needing to be plugged in. Here are five of them. 1. Business Cards Yes, those traditional business cards are still winners. Business cards provide critical contact information and enough detail on how to connect with an organization quickly. Whether by email, text, phone, or mail, the info on a business card is powerful. People love business cards because they are easy to transfer, pack, save, and reference. In the corporate world, business cards still resonate. 2. Letterheads and Stationary In a day and age when so much communication happens by email and texting, the traditional letter stands out, even in a mail pile full of folders and generic material. Best used when conveying a personal connection, professional letterhead is loved by co...
3 comments
Read more

Share Your Brand Story to Create Distinct, Authentic Connections

In a noisy marketplace, businesses must work smarter to grab prospects and lock in loyalty. But the desire for relationship is mutual. According to Cheetah Mobile marketing director Josh Ong, customers don’t just want to buy, they want to buy into something: “Millennials are more likely than any other demographic to be brand loyal. But millennials don’t choose which brand to be loyal to at random, instead, they are highly attuned to the story that a brand tells, as well as the values that brand exhibits.” No one can resist a good story! Need proof? Here’s a fun brand story from eyewear retailer Warby Parker : Warby was founded as a rebellious upstart to tackle the problem of expensive eyewear because of a frustrating personal experience. During a backpacking trip, one of Warby’s founders lost his glasses. Since he was a broke grad student, he couldn’t afford to replace them, and he spent the rest of the semester squinting. By circumven...
Post a Comment
Read more

How to Prepare Large-Format Projects for Print

When you want to flaunt your finest, large-format printing can make an oversized impact! Large-format printing includes products printed at a length of 18-100 inches with a minimum width of 60 inches. Some of the most popular items include posters, window graphics, yard signs, vehicle wraps, vinyl banners, media backdrops, and more. While large-scale graphics are stunning, these projects require special preparation, so these images remain vibrant and sharp when stretched to larger-than-life proportions. If you plan to go BIG, here are some factors to consider. Communicate from the Start When diving in on a large-scale printing, create a detailed brief and use this to speak to your printer as early as possible. Try to include everything from the size, design, materials, and deadlines. Your printer will work with you to be sure your ideas are achievable, and the timeline is realistic. Set Appropriate Image Specifications As you connect with a printer, be sure your images ...
Post a Comment
Read more