Are your offers not converting as expected?
It may be due to a mismatch between the actual offer and your audience’s level of threshold resistance.
Threshold resistance in marketing refers to the perceived barriers that prevent potential customers from taking action on your offers.
When you understand the impact threshold resistance can have on converting your audience, you can craft better offers that resonate with your customers based on where they are in the marketing funnel.
The concept of threshold resistance was popularized by Arnold Taubman, a renowned mall developer. He observed that store entrances and window displays could either invite or repel potential customers.
Similarly, in marketing, your offers can either encourage action or discourage it.
Every offer you make falls somewhere on the spectrum between low to high threshold resistance in the consumer.
If you’re not getting the results you expect from your advertising or marketing messages, then you may have a misalignment between the offer and your target audience’s threshold resistance.
Here’s a breakdown of each level of resistance:
High-Threshold Offers
High-threshold offers have the highest resistance among your audience because these offers involve significant commitment or risk by the customer.
A high-threshold offer is best suited for people who are ready to make a purchase. If you’re making these types of offers to an audience who is unaware of your brand, products, or services, then the conversion rate is likely to be low.
Examples of high-threshold offers:
- $29 dental cleaning visit
- 50% off your first month’s bill
- Buy one get one free
- $1 for a 30-day trial
Mid-Threshold Offers
Mid-threshold offers are positioned in the center of the resistance spectrum. A mid-threshold offer is easier for a consumer to take action on than a high-threshold offer but there is still resistance because it puts the person in an uncomfortable position.
Even though you may think the offer seems like a great deal with no strings attached, there is an underlying expectation in the prospect’s mind that a decision will need to be made if the offer is accepted.
Consumers with evolving interest in your brand, products, or services who are not serious about making a purchase will likely not take this step forward. However, those who are getting closer to buying will easily accept it.
Examples of mid-threshold offers:
- Free exam
- Free seminar
- Free estimate
- Free consultation
Low-Threshold Offers
Low-threshold offers have the least resistance in advertising because they are easy to consume and require minimal commitment by the consumer.
A low-threshold offer is a great way to introduce your brand, products, and services to potential customers without scaring them off.
Essentially, the prospect can sample your offer privately without worrying about having to make any type of decision as is expected with mid-threshold and high-threshold offers.
Examples of low-threshold offers:
- Free information kit
- Free webinar
- Free trial
- Discount code
Balancing High to Low-Threshold Offers
The key to successful advertising and marketing is finding the right balance between high and low-threshold offers. You want to build trust and credibility with low-threshold offers while also capturing higher-quality leads with mid-threshold offers and driving sales with high-threshold offers.
There are three ways to do this effectively:
- Individual Approach: Create advertisements and marketing messages that target each threshold of resistance separately. This strategy casts the widest net to capture consumer interest at every level but also takes the largest investment.
- Hybrid Approach: Put two levels of offers in the same advertisement or marketing message. For example, offer a free information kit with zero obligation (low-threshold offer) to learn more about your product or service, and a free consultation (mid-threshold offer) for those ready to take the next step. This strategy markets to two types of consumers simultaneously with the same marketing dollars, effectively meeting a larger pool of prospects at their specific level of threshold resistance.
- Tiered Approach: Start by advertising only low-threshold offers in your market to attract potential leads. Then, introduce mid-threshold offers to those who engage with your low-threshold offers. Finally, market high-threshold offers to those who accept the mid-threshold offers. This tiered approach helps consumers gradually become familiar with your brand, products, and services, building trust and ultimately leading to purchases.