If you understand and execute on this step in the Digital Revenue Engine conversion flow, you’ll be ahead of most of your competitors.
In the DRE flow, your first goal of agile business strategy is to increase your total number of customers.
At this point, we’ve only convert how to generate leads through the Lead Gen Offer. You still haven’t generated new customers.
Tripwire offers are made to users who display interest through a Lead Generation Offer. This should be an affordable offer, somewhere between one and twenty dollars in price.
For markets where the offers are mostly high-dollar products and services, a Tripwire sale offers of $100 to $500 can see a lot of success.
The goal of a Tripwire sale is to fundamentally change the relationship from sales lead to customer.
The acquisition of a sales lead to a customer, even for a dollar, is a magical thing.
Make a Tripwire Sales Offer that sales leads cant refuse. The offer’s value must be insane, and its price so low that it’s not even a reasonable objective.
The most common way to approach this is by selling the offer at cost and, in some cases, at a loss to you.
That’s right – you heard me correctly.
We’re not trying to make a living by selling Tripwire Offers (i.e., the business rainmakers formally known as “Loss Leaders”). We’re trying to acquire a bigger market of buyers because there is little to nothing more valuable to a startup or small business than a robust list of existing customers.
There’s never been a time in history where it was harder to sell something to someone for the first time.
But there’s never been a time in history where it’s been easier to sell something to someone the second time.
Here’s a classic example of a Tripwire Sales Offer …
Amazon and McDonald’s have taken over their respective markets using classic and modern tripwire sales, all because they understand that acquiring a bigger list of qualified buyers is the name of the game.
Tripwire Sales are all around you.
- The ridiculous flat screen TV deal at Best Buy
- The rock-bottom price of a Kindle Fire
- The Get $50 worth of Chinese Food for $10 Groupon offer
- The 2 GB of licensed music tracks for $1.00
The strategy of Tripwire offers is simple:
Convert the maximum number of Lead Gen Offer sales leads into paying customers, even if it costs you profit margin, understanding that acquisition of a paying customer delivers profit in the next three steps:
- Customer Return Path (workflow)
Customer Acquisition Tips & Tools
From the unfunnel blog:
- Offer Fragmentation = 3x Sales From A Dead Email List + Tired Offer [VIDEO]
- 40 List Building Tips and Tools that can Double your Online Revenue
- Steal my lead generation “revenue mousetrap” …
- 23 Online Conversion Tips for your Website Design
- Website Design’s Role in Agile Marketing Strategy
- Content Mapping the Customer Lifecycle [Slides + Worksheet]
- How to Turn a Bad Website Design into Fast-Growing Online Revenue
From the unfunnel Marketplace:
- Lifecycle Touchpoint Diagram (Content Marketing Template)
- The Digital Revenue Engine: How to Build a Better Online Business
From our Freebies:
Now that you know how to increase the number of customers, let’s talk about increasing the average transaction amount per customer.