What is it?
The Early Bird Effect is a way of encouraging early adopters to purchase by offering a discount to reward their speed.
Why does it work?
It works because discounting is an effective way to get buyers to take action. Early bird discounts usually have a time limit, (Scarcity Effect) meaning that you need to act quickly which adds to the effectiveness of the method. Early Bird pricing can only ever be used when you first offer something for sale, it’s ineffective and confusing to offer early bird deals on existing offerings.
How can you use it?
The next time you launch a new product, deal or service; consider offering early adopters a discount if they act within a certain time frame. You will get the clients, they will get a great deal and the overall perception of the value of your offering will not be affected.
10 alternative ways to discount your offering:
- First purchase– Discount the first purchase a buyer makes with you.
- Follow up offer – Follow up those who didn’t buy with an incentive.
- Cashback – Don’t discount, but provide cash back to those who pay full price.
- Themed Sale – Create an event or reason to hold a sale.
- Price Match – Offer to match the genuine price of a competitor.
- Buy more – Incentivise buyers to spend more with ascending discounts.
- Free gift- Offer a free gift with purchase.
- Early bird – Offer a discount for those who buy/pay in advance.
- Flash Sale – Hold a flash sale
- Budget version -create a naturally cheaper version of your offering to appeal to lower spending buyers.