Marketing Should Not Come With A Caveat
I’m not exactly sure why MasterClass despises any sort of promotion for acquiring more subscribers to their fledgling online learning enterprise. However, it’s obvious that they hate discounting their products in any fashion. Why? One look at the unctuous manner in which they conduct their offers, demonstrates that this San Francisco-based company not only hates doing it, but they also doesn’t particularly like the customers who sign up for them. Why is this important? Because it should be a blatant warning to business owners on precisely how not to treat new customers who are acquired through discounting.
MasterClass only runs their promotion once per year for Black Friday. They probably only do it because they feel obligated to do something, since almost every other company in the United States offers substantial discounts for the day after Thanksgiving – some even discounting for the whole week, or the entire month of November.
This year, they advanced a Black Friday promotion of Buy One, Gift One Free. Sounds like a decent offer, right? You sign up for their service, and can then “gift” a friend, or family member a year-long subscription. But there’s a caveat. The recipient of the gift must to add their credit card information to their account for a mandated auto-renew at the end of the gift year.
Wait. What?!
The only obvious way out of the auto-renewal is to respond to an opt-out email 30 days before the end of the gift year. Not only is this practice unscrupulous and dishonorable, but it completely sullies the entire concept of gifting. Worse, it reflects extremely poorly on the gifter, since it makes them almost complicit in the scam. Thus, the momentary feeling of euphoria that your loved one felt when they received the gift immediately evaporates once the scheme’s true nature comes to light. Even worse, the gift recipient now harbors ill will towards both MasterClass and the gifter, tainting the entire promotion.
Don’t Do This!
Obviously, if MasterClass is forcing an auto-renew, they have zero confidence in the value of their content, and must resort to this type of noxious business conduct. Don’t do this. Instead, honor the integrity of gifting and be grateful that you’ve gained a new customer. Welcome them to your business family and ensure they are making the most out of your products and services. If you have a subscription service and would love for them to renew for a year, then six months in make this offer: “Enjoying MasterClass? Auto-renew now and receive 15% off your next year!” You’re company gets the opt-in* renewal, and you’re customer gets a discount. Win-Win.
* An Opt-IN is a positive interaction, an Opt-Out is a negative interaction. Which customer interaction would your company prefer?
Always Make Your Promotions Positive
Even though you may not want to discount your products or services (who does? ), if you’re going to do it, make it positive. Don’t offer promotions that undermine and tarnish your brand, or subterfuge the entire concept of gifting, like MasterClass. Make it affirmative, auspicious and confident. You’re making a great offer and you want them to feel enthusiastic about making a purchase without any sort of caveat.
Offer something for free but require a credit card number? The only thing this builds is distrust.
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