When to offer them and how to make them work for you.
It’s that time of year. Sales teams are in the home stretch for hitting our goals, both, for the quarter and the year. It’s practically a no holds barred scenario this time of year, which lends itself to creative tactics.
This time of year, business leaders in service industries lean in to the tried and true sales tactics to help close the deal on anything that is on the edge. Pushing sales to close before the new year helps inform your capacity for the first quarter and gives your sales team more room to focus in January.
A few of the most common scenarios are detailed below. These tactics work best with a short and specific timeframe and a strategic pricing strategy.
The New Customer Discount
Offering a one-time discount to a new customer can help show your appreciation, build trust, and create a competitive advantage. Everyone likes to feel like they are getting a deal, and that mental boost can be just what you need to put your prospective buyer in the right mindset.
Try this: We’re offering 15% off on new customer services booked this month.
This approached is typically used to:
- Get new clients to commit to booking capacity for next quarter or year.
- Encourage a deal to close that is taking a long time to decide.
Customer Appreciation Deals
Depending on the needs of your customer-base, it may make sense to create deals by client type, or offer a specific deal to your biggest client. Make sure the time constraints you apply to the offer incentivize your customer towards your short term goals without getting in the way of your long-term business goals.
Try this: We are now offering long-term customer discounts on maintenance plans as a way to
These discounts are commonly used to:
- Thank customers for a referral, repeat business, or a good year overall.
- Boost inside sales.
- Provide a tool for account managers to engage with long-term accounts.
Your existing customers are your greatest asset. Treat them well, and make it easy for them to turn their work wishlist into your revenue stream. If it’s the right opportunity, it should be an easy sell.
Offers on Fixed Cost Goods & Materials
Whether you’re thinking about how to move through your existing inventory or whether it makes sense to pass on the discounts you are getting from your suppliers this holiday season, these deals can have a big impact.
Try this: For a limited time, all of our [insert name] systems are $250 off. This offer is only good while supplies last. Contact us for an installation quote.
This type of deals can help:
- Move through existing inventory.
- Drive new sales through discounts on fixed costs.
- Build public awareness to brand association.
These deals can make for great advertising opportunities. Additionally, you can promote them on social media and your company’s website to help with search engine relevance and brand recognition.
Finding the Right Price
It’s important to set a short and specific timeframe for your discounts in order to make sure your business gets the intended benefits. It’s also important to make sure that the discount is still a good deal for your business.
Ultimately, your prices should always serve your company’s financial goals. If you are using a pricing strategy based on a markup or gross margin, your team’s finance expert should be able to tell you how low you can afford to make it.
Calculating the Financial Impact
Take the time to factor in your discounted pricing and look at the numbers. In Ascend, you can do this by overriding the “Total Customer Cost” field and looking to see how it will impact your target margin. Make sure it’s not going to put your business into a compromising situation, and create limitations that protect you.
If you intend to roll out a large-scale campaign, public or otherwise, it’s a good idea to run financial scenarios to see how that discount will scale. This will allow you to set appropriate expectations in terms of offer limitations and your ability to pull the deal at-will.