The pros and cons of having a welcome offer when customers join your mailing list

Welcome offers have become a popular strategy for digital marketing companies to attract customers and build their mailing lists. However, before implementing such offers, it’s important to analyse their pros and cons. In this post, we will explore the benefits and drawbacks of having a welcome offer when customers join your mailing list.

Pros of having a welcome offer

Increased sign-ups

Welcome offers provide a strong incentive for potential customers to join your mailing list. By offering a valuable freebie, discount, or exclusive content, you can entice visitors to share their email addresses. This can significantly boost the number of sign ups, allowing you to build a larger subscriber base and expand your reach.

Boost in sales

One of the key advantages of welcome offers is their potential to generate immediate sales. When customers receive an enticing offer upon signing up, they are more likely to make a purchase, especially if the offer is time-limited or exclusive. This can result in higher conversion rates and increased revenue for your business.

Referral potential

Customers who receive a positive experience through welcome offers are more inclined to recommend your brand to others. Word-of-mouth marketing is a powerful tool, and when satisfied customers share their experience with friends and family, it can lead to a significant increase in your customer base. By leveraging the referral potential of welcome offers, you can amplify your brand’s reach and attract new customers in an organic way.

Cons of having a welcome offer

High bounce rate

One downside of the welcome offer is the risk of a high bounce rate. Some customers may be solely interested in the offer and may unsubscribe from your mailing list once they receive it. This can lead to a decrease in your subscriber count and limit the long-term benefits of building a mailing list. To mitigate this issue, it’s crucial to ensure that the offer aligns with the customers’ interest and provide ongoing value beyond the initial incentive.

Less brand commitment

While welcome offers can attract new customers, there is a possibility that these customers are primarily motivated by discounts or freebies. They may not have a strong commitment to your brand and may be more inclined to shop around for similar offers from your competitors. To address this, it’s essential to engage and nurture these customers through personalised content, exclusive offers, and exceptional customer service. By building strong relationships, you can encourage their loyalty and increase the chances of repeat purchases.

Evergreen offers

An alternative to welcome offers is implementing evergreen offers. These are long-term, ongoing incentives that provide value to customers throughout their journey with your brand. Evergreen offers can include loyalty programs, exclusive content access, or personalised discounts. The advantage of evergreen offers is their ability to foster ongoing engagement and loyalty among customers. By consistently providing value, you can build strong relationships and encourage repeat purchases, retaining customers along the way.

When considering whether to have a welcome offer for those jumping on board your company’s ship, it’s important to weigh the pros and cons. While they may increase sign-ups, boost sales and harness the potential for referral down the line, they may also lead to a high bounce rate and attract customers who are less committed to your brand. By carefully analysing your target audience, you can determine the most suitable approach. Remember, customer engagement and relationship-building should always be a priority to ensure your digital marketing efforts are not fruitless in the long run.

We are digital marketing experts at NECL. Give us a call or email us if you have any more questions or would like us to help take your marketing to the next level.