In direct response marketing, perceived value is more important than actual value.
Take for instance 2 teeth whitening brands, Rembrandt and Crest. Both use the same exact “magical” ingredient (peroxide) and produce the exact same result. In a close race like this, whichever product has a better perceived value to the consumer will win:
Crest! The perceived value of crest white strips is enormous. Crest charges more money than Rembrandt and sells 3,000% more whitening kits.
At Direct Response, we are masters at creating perceived value. Here’s 9 ways we create perceived value on offers:
1. Offer The Product At A Higher Price
Identify your competition and price your offer higher than theirs. Most people are suspicious of discounted products. The first thing that pops into their minds is “if it’s discounted what’s wrong with it.”
Brands such a Louis Vuitton and Ferrari are coveted throughout the planet. Imagine what would happen if Louis Vuitton bags went on sale for $10 and Ferrari dropped their price to $12,000. There would be a mad influx of buyers. Every other car on the road would be a Ferrari and every house wife would sport an authentic Louis.
Now imagine what would happen if these brands raised their price back up to their historical value. The perceived value would not support the original price and no one would buy.
Do not discount your offer.
2. Use As Many Testimonials As You Can Get Your Hands On
Human beings are followers by nature. The more security you provide them with people that have tried and liked your offer, the higher the chances that they’ll buy.
Creating affiliation is key.
Spend 200% more on packaging. Think about Crest white strips – the nice plastic box with the shiny designs. I viewed the cost specs for the Crest Strips and Crest packaging. The packaging costs 12x the cost of the actual strips.
4. Celebrity Endorsements
If you can afford them get them. Just make sure the endorser is coveted by your target audience 😉
5. Package Your Product With Free Bonuses
Consumers love FREE!!! Add free ebooks, keychains, and other widgets.
6. Use Dark Colors To Create Trust
Dark colors create trust with consumers, especially dark blue – that’s why I used it on this blog 😉 Avoid light colors at all costs.
7. Make It POP!
Make your offer pop. Whether it’s your landing page or actual offer, it needs to pop. A lot of direct response marketers use the color wheel:
There’s a few color combinations that kill it in direct response marketing:
Blue and Yellow (Best Buy)
Red and Yellow (McDonalds)
Blue and Orange (ClickBooth)
Red and White (Target)
8. Create Limited Quantities
Simple economics. In supply and demand, demand goes up as supply goes down. Create a sense of urgency by making your offer scarce – just make sure the qunatities are truly limited or you’ll find yourself violating one of the myriad FTC regulations.
9. Offer A Trial Vs. A Discount
For non-branded offers, show the consumer that you have so much faith in your product that you’ll offer it for free. This creates enormous value.