Deceptive Online Marketing Is Never a Good Idea
Posted By Industrial Web Solutions Marketing Team on February 8, 2010
Many of us have fallen victim to deceptive marketing tactics in one way or another. Congress recently intervened with credit card companies engaging in the “low introductory interest rate” trap that convinced less than mindful consumers that there was actually some “savings’ involved in the deal. In fact, after the three month period interest rates climbed to well over 30% in some cases, which resulted in consumers not being able to meet minimum payment requirements and being charged astronomical late fees. These kinds of tactics are short-sighted and primarily designed to increase the perceived value of the product for the benefit of investors or credit institutions. The damage it does to the brand and/or the company is irreparable. Once you break the bond of trust it is unlikely you will be able to repair it. And worse yet, the FTC is not going to let you get away with it.
In a recent ClickZ article by Douglas Quenqua, “FTC Cracks Down on Deceptive Online Marketing Tactic”, Quenqua explains how the FTC has partnered with Visa and The Better Business Bureau to warn people about companies concealing the true nature of “free trail” offers that result in consumers being trapped into long-term commitments that are accompanied by hefty monthly charges to their credit card. The FTC reached an agreement with Commerce Planet that requires the company to clearly disclose the rules and procedures for opting out of a service or product commitment at the conclusion of the “Free Trial” period.
Ethical use of the “free trial” is typically a very successful marketing initiative. If you have faith in the value of your product or service then you are probably right to assume that your customers will want to keep on using it once they have tested its effectiveness for themselves. It is your responsibility to build into the offer safeguards against theft or misuse. Software and hosted application firms, for example, provide a keycode that expires after 30 days or so, prohibiting the user from continuing to use the product or service after the trial period. Functionality resumes once a license has been purchased and an active keycode has been entered.
If your “free trial” is more complicated, such as it involves a piece of machinery, then it is in your best interests to create a “free trial” contract and fully disclose all aspects of the offer in a special section of your website in clear and concise language (not legalese) using bulleted points and short sentences. Any type of offer requires careful planning beginning with the nature of the offer, how it will be effectively executed and the rules.
Keep your “free trial” offers separate from the rest of your website offerings. Give them their own section on your website so you can carefully manage content and track results. Present the offer and the rules in clear and concise language that can in no way be misconstrued. Make it easy for respondents to purchase the product or service during or after the conclusion of the trial period. It is strongly advised to not tie the rules of the purchase into the trial, requiring respondents to opt-out to avoid being charged. For the sake of clarity and transparency, make the purchasing process its own activity independent of the free trial period sign up. Use instructive calls-to-action to guide respondents seamlessly through the purchase process, clearly explaining each step they are to undertake and providing them with the option to discontinue the sale at any juncture. This will save you a lot of wasted administration time and expense by making sure your new customer really wants what you are selling.
Contact IWS at (800) 399-9859 for help developing effective “free trial” or other strategic online marketing campaigns designed to promote a new product or service.
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