How tripwire helps convert visitors into loyal customers
Tripwire is a marketing tool that helps to attract customers and increase sales. Its essence is to offer an inexpensive but valuable product that the customer cannot ignore. This technique is effective in converting visitors into loyal customers.
The main aim of a tripwire is to lower the barrier to entry for new consumers. If a potential customer makes their first purchase, they will be more receptive to subsequent offers. This approach helps to build trust and a strong relationship with the customer, which further helps to increase the average cheque and loyalty.
Using the tool
Experts note that tripwires are particularly effective in e-commerce. For example, companies offer a discount on the first product or a free trial of a service. This encourages the customer to make a first purchase with minimal risk and cost.
After a successful tripwire, companies often offer customers additional products or services of higher value. This process is known as upselling and cross-selling. By using these techniques, companies not only increase their revenues but also strengthen their customer relationships.
Tripwire examples
To better understand how the tool works, let us look at some specific sales examples:
- Free trial. SaaS companies often offer a 14-day free trial of their paid products. This helps users evaluate the service’s value before purchasing a full subscription.
- First purchase discount. Online retailers offer a 10-20% discount on the first order. This incentivises the customer to make the first purchase, reducing risk and increasing confidence.
- E-books or courses. The author sells their introductory course for a token price (e.g. US$1-5). Once purchased, the reader is offered a full course on the topic at a higher price.
- Sample kits or mini-products. Cosmetics companies sell mini versions of their products at a low price. This encourages customers to buy full-size versions once they are convinced of the quality.
Other examples of tripwires are free shipping, selling promotional items, offering vouchers and gift cards for the future, etc. For example, online shops offer free shipping when a customer spends a certain amount. This encourages the customer to make additional purchases. When selling a main product, retailers often offer an inexpensive but valuable promotional item (such as an accessory) at a token price. They do this to encourage the customer to complete the purchase.
It is also common practice to discount the first month’s use of a service. For example, online services offer the first month of a su
Differences from a lead magnet and its place in the sales funnel
A tripwire and a lead magnet are two different marketing tools used to attract customers. A lead magnet is a free offer that encourages a visitor to leave their contact details, such as an email address. It could be a free ebook, a checklist, or a webinar. A lead magnet requires no financial investment on the part of the customer. A tripwire, on the other hand, is a low-cost but paid-for product.
A lead magnet usually sits at the top of the funnel, used to attract attention and build a base of potential customers. A tripwire sits at the next stage when the customer is already interested in the product and ready to make a small purchase.