Growing up in Wisconsin, I’ve long had a sense of loyalty to my home-state airline, Midwest. For those of you not familiar with this carrier, it built its name on spacious business-class seating, affable service and warm chocolate chip cookies. Over the past couple of years, an attempted hostile take-over, as well as two acquisitions has left both the cookies and loyal passengers – well – burnt.
Most recently, Frontier Airlines acquired the company. Along with the name Midwest, many of the amenities the carrier became known for are gone (though the cookies allegedly remain). I noticed not too long ago that Frontier Airlines was running a new ad campaign – presumably in an attempt to win-over passengers – on Wisconsin’s most prominent online newspaper, JSonline.com about “free” checked baggage.
My assumption is that the airline was trying to draw eyeballs to rival Southwest Airlines “Bags Fly Free” policy.
Accompanying the headline on the banner ad was an asterisk – further review showed the promotion was only good on certain types of seats/tickets, which were linked to more costly airfare. In the end, the deal was only as good as a passengers willingness to pay for their “free” bag one way or another.
In today’s B2B and B2C marketplace, companies find themselves relying on giveaways and special offers to vie for the attention of the prospects and customers they seek to engage. The Internet boom over the past fifteen years has swung the transaction pendulum clearly in the buyer’s favor.
People have far more options and much more information at their fingertips. If a company, or the products and services it offers doesn’t seem authentic, customers will click to the next option until they find an organization they want to do business with.
The problem with most offers is the conditions that are attached, something I call the “Asterisk Offer”. In my opinion, the asterisk is the blemish on what should be a genuine opportunity to create a customer relationship.
An asterisk screams “this offer is too good to be true”. Frontier Airlines is not alone in its use of the asterisk. Many companies (some of our clients included) are eager to promote a snappy headline offer in order to generate excitement and instigate action. The fine print, however, reads like tax code and leaves people feeling deflated – victims of attractive bait that leaves a bitter taste.
B2B transactions are more complex in nature (enterprise technologies, multi-year service contracts, etc.) and inherently lead to long-term customer relationships, and it’s important to instigate that first purchase or trial. However, if takes longer to read the restrictions on your promotional offer than it does to actually execute the purchase transaction, it probably isn’t going to lead to a conversion rate you were hoping for.
To be fair to Frontier Airlines, Southwest’s offer also comes with an asterisk, although they offer the service at all ticketing levels. The right approach is to develop an offer that sets up a genuine two-way value exchange. Extend the offer that demonstrates to prospects that you have skin in the game, and make sure it is unconditional. Create simple steps for acceptance. Make it easy for a prospect or customer to participate.
If you make an offer seem too good, and it ends up being too good to be true, it will have the opposite affect you had intended, and you might end up repelling people in droves.
What was the last authentic offer you accepted? Do you have any examples of a promotion that fell flat once you read the fine print?