How To Beat Your #1 Competitor
In marketing, we are always worried about the competition. If I ask you to think about your biggest competitor, you probably think about a company that is similar to yours and has a comparable offering.
They are NOT your biggest competition.
They may be the biggest business competition to your business, but they are not the biggest competition to your consumer, especially on your website.
I just got a new Surface Pro 4 last week and was in need of a case or protective sleeve to put it in for transportation.
I did my homework and looked around at a bunch of different cases and read all the reviews. I decided I wanted a sleeve vs a case, I picked out a sleeve I liked, had it in my shopping cart and everything. All I had to do was checkout.
I ended up not checking out. I chose later. This is a product I had an immediate need for, I liked it, I trusted the company, but I still chose to wait.
I found what I wanted, it was only 1 click away, but for some reason I decided to wait. Think about it a little and maybe shop around a bit. I ended up buying a sleeve 5 days later at a different store.
Your biggest competition to your online store is: Later.
Online, there are fewer hurdles. It takes no effort to go to the website. It’s available 24 hours a day. I can leave the page open in a separate window and come back to it whenever I want. More often then not, I decide to wait until later to take action.
When I go to a physical store, especially if it’s far away or if it’s a place I don’t frequent, I often think, “I’m already here, I may as well buy it now.”
There are a number of different methods to fight later and create urgency.
- Tap into existing pain
- Fear of Loss
- Limited Time
The method that’s right for you depends on your product and your customers.
One thing that you have to be very careful with is creating stress. When used improperly, any method that creates urgency can cause stress to your visitors. This is why most companies fail at applying urgency to all of their offerings.
Adding urgency to a holiday sale works, but if they add this kind of urgency everyday, the website becomes too stressful. The act of shopping on that website becomes exhausting. Loyalty dies and lifetime customer value suffers.
Rewarding visitors for an immediate purchase is least likely to cause stress.
In order of influence (most influential to least):
- People HATE when you take something away from them.
- People LIKE getting stuff.
- People want to save money.
This is important to understand because while the following 3 offers are ultimately the same, they are not equally influential.
- Buy Now and Save $10
- Buy Now and Get an Instant $10 Coupon
- Buy in the next 1hr and 24min and Get an Instant $10 Coupon
Encouraging purchases through rewards is not a new thing. After all, how do you think McDonalds made Happy Meals so popular? (Free toy anyone?)
Almost no one is taking advantage of this opportunity online – to increase urgency and create loyalty.
How can your company reward your customers for deciding to purchase now?
BTW, if you reach out to me today about how ContourThis can help with your CRO efforts, I’ll personally send you a hard copy of my favorite book.