Question

Topic: Strategy

Effective Product Sampling Program

Posted by Anonymous on 500 Points
Any tips on conducting a cost-effective BtoB product sampling program when the product is relatively expensive ($50 - $75)? We want to give contractors who've never tried our products samples, so they'll want to buy in the future. How do we structure the campaign to make sure people who've used it in the past won't sign up just because they can get it for free, costing us EXISTING business? Since we sell only through distributors, we don't have a database of all customers.
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RESPONSES

  • Posted by Frank Hurtte on Member
    Since you sell through distributors, why not consider using them to drive your sample program. I work with distributors in the industrial, HVAC, electrical, and plumbing sector. I have set up a number of programs that drive this type of sample usage.

    Reach me via my profile if you would like to discuss this issue.
  • Posted by BlueSage on Accepted
    I am racking my brain on this. Run the name, but nothing else by your distributors?

    I would think the only way you could do this is to use
    the distributors. Is there a reason you haven't done
    this or don't want too?

    You could create a page for a new drive for new customers, send them the link, they could download
    it, so they won't be out the expense of creating it, all they have to do is upload it.

    Since they have their db's full of people's names, they could see if it's really a new person or not. Ahhh, but what about the other distributors?

    Would your distributors give you their db's and YOU could have someone enter them in a master db, then it could be automatically checked if someone enters info that's already in it?

    Since you ONLY distribute thru dist. and they KNOW
    that, there is already trust there, that you won't
    be selling to their customers.

    maybe go about it insofar that you are making their selling easier and getting them new customers.
    divide the # of new customers you get by the # of dist. you have, sending the new customers to the distributors.

    Janine
  • Posted by jarcher on Accepted
    You should definitely do the sample campaign either on your own or through your distributors. Make sure you make it very clear that the samples are only available to new customers. Maybe put something like this at the bottom of your offer "Valid to new customers only. Existing customers can take advantage of our customer appreciation special: Buy one, get one 1/2 off any product by using coupon code ...etc) You get the idea... Give your current customers something that makes them feel appreciated and shows them that you are not only giving new customers gifts.
  • Posted by CarolBlaha on Accepted
    The only way to avoid this is do not offer it to existing customers. If they know about and are not offered the product-- they'll feel they are being penalized for being a good customer.

    I also maintain a rep agency in the construction industry. You are not dealing with especially forgiving people.

    We sometimes run two tiers of spiffs. One geared to new clients-- with the same goals as you have. The other to existing-- where we might feature only a portion of the line.

    Your distributors have a database of customers. Let them deliver it and be responsible for its implementation. You still will have to rely on the distributor's honesty. I'd random audit them (with your own records). But the reality is -- if an occasional $75 widget goes to a existing customer and you cement an already good relationship-- have you really lost?

    Carol
    Sell Well and Prosper tm
  • Posted by Chris Blackman on Accepted
    First, mwilliams, "G'day" and congratulations on what looks to be your first ever question after four years of membership!

    CarolBlaha's so right (as always) about the need to avoid disenfranchising existing customers if they find themselves excluded from a particular offer.

    I'm presuming your main objective is to increase sales by increasing share without impacting too much or for the long term on margins, is that right?

    Perhaps you need to consider two tactical implementations:

    1. Target competitor's customers - Find people using the competitor's products and offer them to trade a new or an old (hinge gate latch widget or whatever the $50-75 thing is) for a brand new one of yours.

      That way, you know one of yours is taking the place of a competitor's out there in the marketplace where it really matters...

    2. Reward loyal existing customers - Offer a bonus (one unit of whatever your widget product is) for every boxful or outer of yours they buy for the same duration as the "target a competitor" campaign is running.

      Since total market consumption of products like yours is probably project based rather than on price or anything else the total market size is likely relatively inelastic.

      Therefore, one of yours being sold is always going to knock out a sale of a competitors products, I think.


    That avoids disenfranchising the loyal but targets conversion from competitors. So it doesn't matter whether the offer redemption is by an existing or a new customer.

    The act of redemption is what gets you the trial and potential for increased penetration and share.

    If you want to discuss this off line you can reach me via my profile. I suspect we are in the same timezone.

    Cheers

    ChrisB

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