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8 Things You Need To Know About Bonuses

Posted by: Staff Posted on

Bonuses are simple. They’re that little added extra. The final touch to make your product absolutely irresistible. The icing. The cherry.

Sure, your stuff is already great. But with the right added incentive – a clever piece of marketing designed to remove that last lingering bit of doubt in a consumer’s head – sales, product value, and loyalty should all increase.

So, with that in mind, here are 8 things you need to know about bonuses before you offer one to your consumers.

1. Bonuses Add Value – They Sweeten The Deal

Consumer psychology is complex. No matter how good your product is, there will always be some people who hesitate when it comes to that final decision to buy – even if what you’re selling is what they need.

It’s no coincidence that 75% of buyers feel more comfortable with businesses that offer an added incentive. An effective bonus is your secret weapon against these cautious cats – just as long as it adds value, that is.

In short, give your consumers something that will enhance their overall experience. In other words, offer a bonus that complements your product, for example, free training, or another item that can be used alongside it.

2.  Bonuses Help Land More Conversions

People like getting more for their money. In fact, research shows that by offering a bonus (as opposed to a discount) you can boost sales by over 70%.

One reason for this is that it’s easier for a buyer to compute something they will physically attain versus how much they will save with a discount (because math is hard).

Another is that humans just love free stuff. Who’s have thought?

Finally, MIT Sloan found that businesses that offered an incentive were 77% more likely to be chosen over another brand. And more people means more conversions. Basically, bonuses work.

3. Bonuses Make You Stand Out

In a crowded market, a good bonus or incentive can be the difference between winning a sale and missing out to your competition.

The truth is consumers have never been more powerful and better informed. Reviews. Customer testimonials. Comparison sites. Consumer media. Right now, consumers don’t have to look far to find out about your product.

FOMO is real – and it is powerful

A bonus is an awesome way to stand out and cut through the noise. Think about it. If your existing users are raving about your product AND the brilliant bonus that came with it, there’s only going to be one outcome.

4.  Bonuses Come In All Sorts Of Shapes And Sizes – Find The Best For You

From the humble ‘Buy 1 Get 1 Free’ to a custom ebook, bonuses come in all shapes and sizes. The trick is finding the one that works best for you.

For a digital business, this can be a little bit trickier. Here are a few ideas:

  1. Online training: A free tutorial that teaches users how to get the most out of your product. This is particularly useful for SaaS businesses.
  2. Online support: Like online training, access to free support assets (for example, a personal customer care agent) helps build a culture of loyalty.
  3. Free templates: Another great bonus for software companies, ready-made, free templates add value by making things easier for users.
  4. Ebooks and guides: Free content that relates to your product is always a winner. Just ensure that the book features a problem that your product can solve.

5. Bonuses Need To Be Relevant – So Know Your Audience

When thinking about the kind of bonus you’re going to offer, it’s important to consider your audience. So, ask yourself – what do they want?

Think about your customer personas here. What are the main pain points you’re trying to help them with? How can you help your consumers get the most out of your product?

As we’ve said already, the best bonuses ADD to your product, so relevancy is key. Look back at the 4 options we’ve just given you above – which is the most relevant for your product?

6. Bonuses Are More Appealing With A Time Limit

FOMO (fear of missing out) is real – and it is powerful. In fact, 60% of millennials say they’ve made a purchase based on this fear. Scary.

To create FOMO around a bonus or product, you need to foster a sense of urgency. Doing this suggests that the deal you’re offering is “scarce”, playing into the consumer’s innate fear of losing out on a brilliant deal.

Here are a few examples of tag lines you can use to drive FOMO in your bonus marketing:

  • Available for a limited time only…
  • One-time bonus package…
  • Only a few hours/days/weeks to take advantage of this deal…
  • Last chance to get this bonus deal…

7. Overvalued Bonuses Rarely Work

Putting a price tag on a bonus is another great way to add value to your offer. Why? It shows your prospective consumer exactly how much they’re saving in clear, monetary terms.

But when it comes to setting the price, be honest about it. Ask yourself: If you were going to sell this bonus as a standalone product, how much would you genuinely charge?

Loyal customers are worth a lot to a business

The reason for this is simple: consumers are not stupid.

If you slap a crazy value on your bonus, you run the risk of putting people off altogether. The old phrase “if it looks too good to be true, it probably is” still rings true today.

8. Bonuses Build Loyalty

Bonuses aren’t just for winning new business – they’re also a great way to create a culture of loyalty within your existing user base.

Loyal customers are worth a lot to a business. Not only do they keep buying your products, but they also bring in new customers through referral schemes, or by spreading the word organically.

The secret to creating an effective loyalty bonus is making it personal. Look at the data you already have – for example, consumers’ buying habits (which products they buy, for example) and personal information (everyone loves a birthday bonus!) – and use this to inform your rewards program.

Boost Sales With A Simple Bonus

You’ve seen the facts: when done right bonuses can boost sales.

And the key to a good bonus is VALUE. If you can create an offer that genuinely helps your target consumer, your bonus will work.

Be sure to take your time to define exactly what the perfect bonus looks like for your business. The results are worth the effort.