And until closing time today, H&R Block is giving away their services for free. They’ll prepare and file tax returns at no cost. The excitement here might come from the prospect of claiming a tax refund, or perhaps it’s from getting a burden off the shoulders.
If you’re tempted to follow the Liquid Planet and H&R Block examples, keep in mind that free works in funny ways. Here are shopper psychology tips on using these types of free offers to your profitable advantage:
- Free offers are a fine way to have resistant purchasers try your core services. H&R Block views the promotion as a way to draw in footsteps. But be sure to set strict enough conditions on your free offer. The H&R Block promotion covers only the filing of the federal 1040EZ. The company estimates that many of the people coming in for the free offer will learn that they need to file forms for which there is a fee. For those who don’t, H&R Block estimates 55% will be in that situation within two years.
- Make all conditions abundantly clear, especially with online offers and especially when it comes to shipping and handling fees. Ecommerce shoppers are so accustomed to getting things of value at no cost that they feel betrayed when they expect it to happen and then are told they’ll have to pay.
- As Liquid Planet has done, be sure to state the usual price of whatever it is you’re giving away. Better yet, if what you’re thinking of giving away is part of your core business, considering charging a token fee instead. Researchers at Monash University in Australia find that consumers have an easier time recognizing the value of a big discount when charged a token price than when getting it for free.
Free Up Shopper Resistances to Trial
Hesitate Giving Away the Store
No comments:
Post a Comment