PPC Adverts - Loss Leaders

[tomsk]

I am looking for some feed back an a question I have, how do people feel about being slightly duped.

On occasions I have click advert that say things like free trial, 30 day trial risk free etc only to find that you have to sign up to something and give credit card details before being allowed to try the free trial.

A competitor is running a ppc campaign saying they can provide a service for £60, which really should cost over £100 but the advert is eye catching because it's cheap, but I get the impression that if you phone it will be £60 for a service that very few would qualify for but you have the customer at the end of the phone.

But feels a bit like cheating to me - any thoughts?

[Webtistic]

Well, look at it from a slightly different perspective..

If they can't deliver at that price, my guess is they are wasting a fair bit of cash on clicks. It's all very well buying traffic, but if you can't derive conversions from these visitors, then it can be an expensive exercise. They probably wont be doing this for long.

Oh, and promising one thing in an advert and then failing to deliver is a sure fire way of brand suicide.

Leave them to it :)

[Kathleen Rigg]

Try clicking on the advert and see what it says on the web page you are directed to. Also if you want to confirm exactly what the offer is ask a friend to ring them and pose as a potential customer. Then you'll know exactly what they are doing and whether it is a real threat to your business.....

Regarding the "free trial" which you have to supply your credit card to signup for, this will only work if you have a product which customers are really interested in. It can work both positively and negatively for the business.

Positively if you are a "trusted supplier" as it filters out any time wasters and only leaves you with real potential customers. Potentially negative if you're not a "Trusted Supplier" in which case it could act as a road block preventing people from signing up as they are not confident you will cancel their credit card agreement if required!

[G. Lasagne]

Well business is business and i think that any form of advertising that brings in work is a good thing regardless of the moral standing.

For example i have a competior who has an add for a boiler installation package for £2200 (cant remeber exactly) but when you call up they tell you its plus vat and you need to add on this and that, i know this as i rang up pretending to be a customer.

the company also told me that it was pointless booking me in for a quote as they were booked up until febuary (this was in november). so maybe a better way of looking at it, is how to lure customers in and then convert them.

i.e service for £60 you then find out its £100 but you say that you had to increase the price because of sheer demand and you havent had time to change the ad.

These tactics arent something i use or plan on using, (as i dont have the outright cheek) but that dosent mean that i dont think they are a good tactic from a business point of view.

Dave

[directmarketingadvice]

But feels a bit like cheating to me - any thoughts?

It's bait-and-switch, isn't it? Not really a "loss leader".

(a "loss leader" is more like a product/service that brings customers in at a loss, with the profit being made on additional/future sales)

It really depends on whether the deal is sincere.

Steve