Every now and then, when we launch a promo we sign off asking you to “make the most” of the pricing offered. What exactly we mean by that is not always clear – so I thought I would put together a short article on doing just that.
Pricing
Setting the right price is the first and the most important step when it comes to Promotions. You have to factor in various aspects like the short term growth in terms of profits, the lifetime value of a Customer and the competition in your market.
You can choose any one of the three strategies:
- Lower Margins for Higher Volumes: This works well for price sensitive markets and also for those who are trying to capture a competitor’s market share. However, with this strategy you run the risk of lower profits if the promo doesn’t increase volumes.
- Maintain the same Margin: This protects you from the risk of lower volumes as you will maintain your profits as long as you maintain your regular Domain numbers. Obviously, this strategy will not work in highly competitive markets.
- Higher Margin for Higher Profits: This allows you to make greater profits off every Domain sold as long as you can still be competitive. This strategy can work for you if you have competitors that are more expensive or if you cater to a market that is not highly price sensitive.
Awareness
Once you have set your Promo Price, the next step is to make sure that everyone knows about it. Mailers & announcements are the most efficient and cost effective ways of reaching your existing Customers. Another way of spreading awareness is having banner ads and other marketing collaterals on your website. So delegating time and resources for the same is crucial to the success of any promotion!
- Mailers & Announcements: You can get in touch with all your existing Customers in a few steps using the Reseller Control Panel. Using the ‘Send Mail’ option you can mail your existing clients. Announcements are messages that are shown to your existing clients when they login to their Control Panels to manage their Products and Services. It is shown as the first screen on a successful login and hence ensures that your clients read the message about the Promotion.
Customer/Sub-Resellers >> Send Mail
Customers/Sub-Resellers >> Announcements
- Website Banners and Banner Ads: Another great way of promoting your offers is by placing banners on your website so that every visitor knows what’s on offer. You can also choose to display banner ads on other relevant industry websites. For both these modes you can use the ResellerClub Resource Center for readymade collaterals and banners.
- Some other online modes that you can employ are Press Releases to relevant news portals, Search Engine Marketing (SEM) and Social Media Marketing. All three of them require a certain amount of expertise but you can definitely speak to your Account Manager and get a little help.
- However, all said and done the activities that will probably give you the best ROI is local marketing. No big registrar or outside competitor can ever compete with you on your turf so make sure that everyone in your town/city/state/country knows of the discounts offered.
Some Quick Tips:
Opt-in for the Promotion: Lower prices will always boost your volumes and profits so make sure that you opt-in for promos and then pass on the discounts offered to your Customers and Resellers. They also help spread awareness about your brand which may lead to long term benefits.
Contact Existing Clients: They are your biggest assets so make sure they know of the latest offers. They have already purchased from you once and more likely to buy again.
Promote the Promo: We usually give you at least two weeks notice for all big promotions so use that time to create some hype around the promotion, this in turn allows your Customers and Resellers to plan for their purchases.
Send Reminders: Once the promo kicks off, contact your leads and existing clients and make sure that they are informed. Sending Reminders and follow ups can also go a long way in increasing your Promo numbers.
I hope this was good read and helps you increase your profits with every Promo 🙂 In fact, with Mega Bargains Month beginning tomorrow, you can start right away!
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