· Issue 36 · October 2016
Trial Offers: Increase Profitability
Without Increasing Risk
by Monica Eaton-Cardone
Monica Eaton-Cardone
R
isk-free trial offers typically convert better, increase cash flow,
»» Accurate ROI analysis with customized trial metrics
and provide a rapid method for advertiser growth. However,
»» Enhanced affiliate tracking
many advertisers believe the risks outweigh the reward.
»» Affiliate fraud detection
Naturally, these promotions attract more chargebacks, but the
greatest risk is the indelible effects of a damaged online reputation. To take advantage of this marketing ingenuity without sacrificing longevity, a few considerations are mandatory.
Understand Customer Perspectives
»» Policy exception parameters Offer compliance with terms, the Federal Trade Commission, merchant processing agreements, etc.
Best Practices Last but not least, successful trial offers subscribe to best
The general rule of thumb is, if you’re interested in building a ‘cred-
practice philosophies. Here’s how to use trial offers to increase
ible’ brand, forego risk-free trials (also known as negative option). Chal-
profitability without damaging the advertiser’s reputation or bot-
lenging this rule requires an understanding of consumer logic:
tom line.
1.
The ‘try it before you buy it’ concept, generally linked to a
»» Provide clear, concise terms of service and share before signup.
recurring subscription, attracts higher conversions.
»» Indicate if the offer includes complete or limited access.
2.
Consumers usually overlook or ignore recurring subscription terms.
»» Define the duration of limited-time offers.
3.
Most customers have had a negative experience with subscriptions
»» Outline costs associated with upgrades or activity after the trial
because valid attempts to cancel were unsuccessful.
offer expires.
An expectation of instant gratification and limited responsi-
»» Notify consumers before the trial is set to expire. Remind
bility, coupled with negative first-hand experiences, often leads
the cardholder of any automatic charges at least five days
customers to file chargebacks and flock to the internet to voice
in advance.
their complaints—Zendesk reports 45% of customers share negative brand opinions on social media. So, what’s an advertiser to do?
Be Prepared Fortunately, it is possible to build your brand and your bank ac-
»» Share contact information. Respond to social media comments and emails promptly, and answer the phone within three rings. »» Offer a no-strings-attached cancelation policy. »» Have well-trained customer service representatives available. »» Be sure you can validate any testimonials and performance claims.
count with a trial offer that won’t damage your online reputation. To
»» Don’t imply any endorsements that haven’t actually been granted.
do so requires extra attention on pre-campaign planning.
»» Monitor affiliate tactics and ensure against incentive fraud.
The primary reason for outweighed risk is neglecting cam-
»» Conduct A/B tests, carefully tracking key performance indicators.
paign requirements prior to launch. Commonly overlooked com-
»» Analyze chargeback data to identify merchant error and
ponents include: »» Sufficient capital reserves for a longer sales cycle »» Increased support staff »» On-demand resources »» Revised manual review policies »» Enhanced user tracking to prevent the creation of multiple accounts
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customer dissatisfaction. »» Request feedback from trial participants, and make adjustments as advised. »» Use affiliate fraud tools, such as affiliate fraud alerts. By taking into account consumer perception, administering adequate planning, and adopting best practices, you can ensure this classic marketing tactic will show only the best of your business.
Monica Eaton-Cardone is the COO of Chargebacks911. The company optimizes eCommerce profitability through chargeback management.