Understand Your Buyer > How To Convert > The First Purchase Effect
What is it?
The First Purchase Effect looks at discounting the first purchase to help new potential clients to buy from you.
Why does it work?
It works because many potential buyers are skeptical about making a purchase and “risking” their time and money on your offering. By lowering the price of the first purchase you are making it “less risky” for clients to buy but without discounting their expectation of the value of your offering overall.
How can you use it?
Depending on your offering, by discounting the first session, first purchase or first XX amount of time using your offering you can create a simpler and “less risky” way for clients to sample your offering before transitioning to full price.
Example
HelloFresh offers new customers 50% off their first recipe box and additional discounts for the next few deliveries. This massive initial saving removes the financial hesitation of trying a new meal kit service and makes the first purchase feel like a low-risk decision.
Once customers have tried the service and experienced the convenience and quality, many continue at full price — proving that the First Purchase Effect works by lowering the barrier to entry without undermining the long-term value of the product.
10 alternative ways to discount your offering:
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- First purchase– Discount the first purchase a buyer makes with you.
- Follow up offer – Follow up those who didn’t buy with an incentive.
- Cashback – Don’t discount, but provide cash back to those who pay full price.
- Themed Sale – Create an event or reason to hold a sale.
- Price Match – Offer to match the genuine price of a competitor.
- Buy more – Incentivise buyers to spend more with ascending discounts.
- Free gift- Offer a free gift with purchase.
- Early bird – Offer a discount for those who buy/pay in advance.
- Flash Sale – Hold a flash sale
- Budget version -create a naturally cheaper version of your offering to appeal to lower spending buyers.
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