Do you need a special offer to attract new learners?
It’s a topic of debate amongst driving instructors, sometimes it can get quite heated, but it’s no surprise that special offers dominate the world of driving lessons. It won’t take very long to find a fiercely competitive offer online, or a car stickered up in your local town with a seemingly ‘too good to be true’ deal.
But we want to ask the question, are special offers really worth it? We hope, from a marketing view at least, we can shed some light on the subject.
why do special offers work?
Before we take a look at driving instructors and schools specifically, it’s good to understand what a special offer exactly is and why they are used by businesses.
It’s quite simple really, consumers seek pleasure and avoid pain. A discounted price on a service they know they want/need is certainly a pleasure, and as we explain in our FREE Lead Generation E-Book once a time limit is attached to the offer a ‘fear of missing out’ effect is created, a pain that consumers certainly want to avoid.
The Good, The Bad, The Ugly
It can’t be argued that the right special offer can work wonders. Not only does it attract new learners to a driving school, but the right offer at the right price can provide an instructor with a fantastic return on investment. Good special offers also provide a talking point, people like to discuss the fantastic savings they have made on a product or service, thus giving your school some free brand awareness and possibly a few referrals!
If you’re lucky enough to be one of the many instructors who don’t have to worry about where your next pupil is coming from because you have a waiting list longer than a Disneyland queue, then a special offer isn’t the best idea. Giving away extra money that could be going into your pocket is just bad business.
Special offers when used too often and in too large of a quantity can also be bad for your brand. If you’re not careful, special offers can cheapen your brand thus meaning you will only attract price sensitive customers, ultimately meaning you’ll earn well below your earning potential.
Some businesses use special offers in an attempt to control the market, and squeeze their competitors out. Whilst this can be an effective way of increasing your market share, it’s also a very risky strategy. Running ridiculously cheap special offers that restrict your return on investment just because you don’t want a competitor to have that business can spell disaster for your bottom line and if not managed correctly, can result in catastrophic failure.
special offers and online lead generation
Online lead generation in its most simplistic form is all about generating traffic through to a webpage, and then converting that traffic into a lead. The more clicks through to the webpage, the more leads you are likely to get.
Taking Google AdWords as an example, if you have 5 driving schools in your area all running ads with seemingly strong special offers, and you are the one school that decides not to run a special offer, you are going to get much fewer clicks through to your webpage.
Fewer clicks = fewer leads
So whilst you absolutely don’t have to run a special offer when running online lead generation campaigns, it’s going to cost you a lot more to gain a new learner if you don’t. This seriously hinders your return on investment potential and means the higher hourly rate you have been able to charge actually leaves you with less money to take home in the end.
do I NEED to run special offers?
The simple answer? No, you don’t NEED to run special offers in order to operate a successful driving school.
If you are fortunate enough to have a fantastic reputation in your local community, are the first choice of many new learners through word-of-mouth alone and use very few marketing tactics to attract new business, then special offers probably aren’t right for you.
However, if you are in the majority are require a couple or more extra new learners a month to ensure you reach your maximum earning potential, special offers will make your lead generation campaigns much more effective and increase the money you take home at the end of the week.
If you would like to discuss how special offers and lead generation campaigns can work for your driving school, get in touch and speak to one of the team today.