When software companies launch new products, they often undergo the painful task of offering discounts in order to generate consumer interest—which risks the chance of instant brand degradation. But a few years ago, when I handled e-commerce sales for a small software company, I offered a purchase incentive that allowed several top software companies to avoid implementing discounts in their product launches—and built a name for my brand in the process.
I let these large companies offer my product—a $19.95 value—for free with the purchase of their software, as long as they paid my company $1 for each sale. This bold move allowed name-brand companies to sell their product at full price while still giving customers a great deal. The perceived value of this incentive to the customer ($20) was far greater than the actual cost for the company ($1). And getting a $20 product for free exceeded any internal purchase incentive that the company could have offered, such as giving a 20% discount that could cost the company $10+.
Prior to implementing this marketing strategy, my company’s monthly online sales average was akin to what major software companies earn in a few days. But offering my product as a purchase incentive helped raise my company’s monthly online sales by an astonishing 430%. I boosted my brand by association with some of the best-known companies in the industry and exposed my brand to a significant volume of high-quality traffic that would take years to accrue organically. Plus I acquired tens of thousands of valuable names for my mailing list and added hundreds of thousands of new users to my base with renewal potential in years to come. Original Equipment Manufacturer (OEM) deals and large volume sales pay out at a similar rate to purchase incentives, so this strategy learned by my small software company would benefit software companies of any size.
However, the benefit of purchase incentive partnerships extends beyond software and certainly isn’t limited to complementary products (bundling software purchase incentives to software products). For example, at a time when many consumers are planning holiday travel, a $50-off coupon to an online travel site such as Travelocity or Priceline would encourage customers to complete just about any online sale, from software titles to newspaper subscriptions, from movie tickets to restaurant gift cards. And this arrangement would surely benefit the travel site that gives away the $50-off coupon, knowing that the cost of a flight or hotel stay is significantly higher than the $50 discount.
TrialPay maintains a network of purchase incentives just like these to connect thousands of companies across many industries, creating unlimited opportunities to leverage another company’s brand recognition or seasonal promotions to incrementally boost sales. Stay tuned for even more information on how purchase incentives can help optimize your e-commerce sales cycle. Have questions? E-mail us: email@example.com
– Lisa Contoyannis
Director of Marketing and PR