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.
10 alternative ways to discount your offering:
- 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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