The ‘Yes and Yes Pricing System' is supposed to work. Yet somehow, it seems to fail. In this issue, learn ‘Why The ‘Yes and Yes' Pricing Grid Fails (And How To Fix It)'
Coffee.
Coffee and chocolate brownie.
Which option puts a bigger smile on your face?
No, don't tell me…
In random tests done over 5 months, when faced with a ‘Yes and Yes' option, 97.5% chose the second option, even when it was more than obvious, that option No.2 was clearly more expensive.
It's a no-brainer to see why a ‘Yes and Yes' Factor works
Yet amazingly, when some readers applied the concept to their marketing, the ‘Yes and Yes Factor' failed miserably.
What on earth could cause the ‘Yes and Yes' Factor to crash and burn?
Three major elements play a role:
1) The Logic of the Offer
2) The Timing of the Offer
3) The Visual Elements
The Logic of the Offer
The biggest reason why the ‘Yes and Yes' Factor fails, is because there isn't what you'd call a logical upgrade. Coffee and brownies are a logical upgrade. A Mercedes vs. a Mercedes with a leather seats is a logical upgrade.
A Ford vs. a Mercedes offer causes the brain to sputter. To stop. To wonder. To wander. And causes the customer to want to think a while.
Often, the wandering is a mite too far and too long, causing you to lose the sale. Losing isn't just about logic…
It's also about timing.
Try offering the customer the coffee and chocolate brownie at the door. No matter how good your offer, the customer will recoil.
Is she a case of mistaken identity? Was that coffee meant for someone else? Is the store trying to push the coffee? Is there something wrong with the coffee?
Timing is…um…everything.
Your offer needs to be made at the point of sale. The ‘Yes and Yes' factor only works when the customer is relaxed and ready to buy.
Hurry your offer through, and watch your customer's face. See the confusion. Probably even disgust. How the heck are you going to get someone to buy when you're pressing all the wrong buttons? You've got to get the timing right.
And yes, the customer needs to see the big picture.
Tah, dah…the big picture…
Ok, so you've got the logic sorted out. Your timing is impeccable. But have you got the visual elements in place?
Visual what?
As a customer I need to see the difference between the offer. No matter whether you're selling face to face, or through a channel like the Internet, I need to see visuals that clearly show me I'm getting the ‘brownie.'
(Examples of Marketing Strategy Visuals)
Even if you're making the offer in an email, and you don't have the benefit of HTML, you can demonstrate the difference visually. (See below)
In a text-only email, the text could be like this:
Offer No.1:
Blah, Blah, Blah,Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
OR
Offer No.2:
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah, Blah,
Blah, Blah, Blah, Blah, Blah, Blah,
Where offer 2 is visually more. And in reality, contains more value for the customer.
To get back to the brownies and coffee
You'd use:
1) The factor of logic, by offering the brownies and the coffees in tandem with each other.
2) You'd make sure you'd make the timing was spot on. You'd offer the deal once the customer was ready to buy.
3) Visually the customer would need to see the brownie, before taking a decision. The sight of a yummy chocolate brownie would instantly cause the most obstinate dieter, to break her resolve.
And that, mah friend, is how you put the ‘Yes and Yes' Factor to optimal use.
P.S. I know you're still thinking of that cake and chocolate brownie 😉 Well, don't let me stop you!
Marie Elwood says
Sean,
Enjoyed your article; well-written & spot-on. I’ve also found that when a seller offers even a small discount as an incentive they can make the sale for me. For instance, at the drive-thru of my local Starbucks, when the person taking my order LISTENED to what I’d ordered (skim half-caf no-whip mocha) and teamed it up with an offer for “a REDUCED-FAT (see how smart!) coffee cake FOR JUST A DOLLAR MORE” I’ve taken the bait. Smart offer, great timing, and just a nominal price incentive all worked for me.
I write a free 60-second weekly newsletter with marketing articles and career progression tips that may be a nice complement to your blog: http://www.speeddialnewsletter.com.
Cheers!
Marie
Sean D'Souza says
Yup, we all want more. We all like bonuses. But the bonus must be well structured or the deal falls apart.