A successful business cares about its customers’ shopping experience and strives to devise a strategy that makes sure that their customers return for more. There are several advantages of sales promotion. One of the biggest attractions of any store, be it online or retail, is sales promotion or offers. More than 90% of the consumers wait for the annual sale or coupons to make a purchase. That’s a huge chunk of the market and thus if you don’t have a strategy dedicated to sales promotion, you are losing conversions.
Sales promotions are a guaranteed way to increase sales, traffic, and brand awareness. Be it on your website or social media platforms, if you want to create hype around your brand, you need to first offer your audience something they cannot ignore. And that is only if you offer something for free or at a discount. Another growing buying-behavior is of online purchases. Now its easier to go online without breaking your bank.
In this article, we will discuss some of the most effective sales promotion techniques. And how they add value to our business.
In this modern world of today, effective communications open the door to success and business growth. The importance of ICT (information and communications technology) in our business life is evident. We, humans, are always appreciative of good manners and sophisticated approaches. Sales promotion are a mean of effective communication with catchy, nice-sounding cost reduction phrases and right promises. You are opting to reach out to prospective customers, and this way, you get ahead of a lot of your competitors.
The more reach you have, the more your business will grow. Your business is highly dependent on customers. So how to grab their attention in this competitive online/offline/eCommerce market? By sales promotion, you can make amazing and attention-grabbing offers to make sure your brand is getting noticed by the audience. An amazing idea is to include influencers or celebrities in your sales promotion to widen the reach.
What attracts everybody attracts your customers. When in the past, you wanted to buy the same product at a higher price or when you were only looking for the lower prices? The majority of customers purchase while staring at price tags. Your sales promotion can play well if you can attract the customer looking for such price tags. Financial benefits are irresistible, but you should know that your product should be serving the needs of customers to whom such sales or promotions attract.
Reason to Buy?
What is the reason to buy from you? Why should people be investing in your product, project, or venture? It is unto you, your business, and your business model to find a way for customers to identify their needs and why to buy. When we talk about facilitating customers, we mean it. You have to help your customer with every step they take before purchasing your product. Once you master the needs and hazards of your customers, you can play with them, and you can sell them effectively. You can also learn Why do people chase fashion trends and try to create a reason to buy.
It’s easier to retain a customer rather than convert a new one. And sales promotions make the job much easier. You can offer your loyal customers special discounts and offers to retain them. Effective communication, problem-solving, and customer retention helps in increasing customer satisfaction and also prevent your customers from seeking out other businesses.
Stand Out from Competitors
With so many businesses working in the same industry as you, it’s become hard to make a name for yourself and stand out. Sales promotion provides an opportunity to create an offer that is different from the rest and beneficial to your customers. Here also, the objective should be seeking the attention of your customer. Here, you should also understand how digitalize your approaches should be while trying to reach your customers?
Do not burden your business by keeping hefty stocks in the warehouse that only sores your debts with each passing day. Sales promotion also offers a great way to take care of your old stock and make space for the new collection. Not only would your customers be delighted with the discounted rates, but you would also make a profit from a stock that was seasonal or exclusive or needed clearance. We also know these types of sales by the name of clearance sales.
Why Sales Promotion Is Effective?
Lack of attention is what most businesses face. Our attention span for a subject is reducing day-to-day due to a flood of information demanding the user attraction. I would rather say that today is a world of attraction stealing. Sales promotion is a technique that helps you gather the attention you need to stand out. Nowadays, successful sales are all dependent on how unique you are, how influential you are, and how trendy you are? And if you want to be the trending topic, you need to be creative, and sales promotion offers you just that. Let’s look at some of the benefits in detail.
Types of Offers and Advantages of Sales Promotion
The oldest technique in the book and it still works. Buy one get one free offer are the most enticing types of sales promotion. Why? Because the consumer gets 2 in the price of 1 and on the other hand, you don’t lose any revenue as well. This offer is great for taking care of previous stock and doesn’t cost you anything as well. Although, instead of going with the traditional emails, try to spice it up and make it as personalized as possible to increase engagement and entice your customers to click on the Buy Now button. And it doesn’t strictly have to be “buy one get one free”, offering something as a gift or 50% off is a great way to trigger a positive response as well.
This is pretty straightforward in its use, but coupons are an ever-effective marketing tool that is utilized by many. All businesses offer their customers coupons now and then to keep them engaged and coming back for more. That’s what sale promotions are all about. But the crucial thing to remember is when to offer coupons on site. Timing has a huge impact on the effectiveness of a promotion. Let’s look at some examples below. Offering coupons at the last possible moment is the best way to entice customers to make a purchase. For example, customers usually abandon their carts at the checkout page due to a complex procedure, higher shipping fees, etc. But as a customer is about to leave, you can offer a coupon for their next purchase or a discount on their overall purchase to persuade them back. Similarly, offering discounted first-month subscriptions or special-day coupons also works.
If you are treating your loyal and new customers the same way, you are wrong to do so. One of the best ways to increase retention is by enabling a reward or loyalty program in your store. A loyalty program provides special offers, discounts, or exclusive products to your loyal customers. This is a great way to entice users to buy your membership or sign up for your newsletter. Make the loyalty program as beneficial and exclusive as possible so your customers feel special. Whereas a reward system is accessible by any customer. All you have to do is place points for different actions on your site and offer your customers gifts or shipping by setting a point limit.
Make an Offer
Do you know what’s better than listing a discounted price or offer? Giving the reins to your customers. Make an Offer is a type of sale promotion that enables your customers to negotiate prices instead of fixating on a single price. Your customers feel like they have control over the product price and you get to benefit from a sizable profit as well. WooCommerce Make-an-Offer plugins easily enable this feature on your site. This sales promotion is beneficial because it helps you stand out from your competition. They are few businesses that offer this and even then it’s not properly maintained. Make sure to have a knowledgeable and cooperative customer support team available for negotiation.
Most businesses do not utilize Lifestyle discounts opportunities to reach their customers, and you should engage with them. Lifestyle discounts are limited to a specific niche or group of customers. Therefore, we are not expecting great results here. However, if you still invest in it, it is worth taking. You are not losing much in terms of profit, but you gain the attention of a new market. For example, you can offer special discounts for students, teachers, or more on a special occasion or throughout the year. This is usually employed in a food business but is suitable for any type.
Another new sale promotional technique is referral discounts. You all must have heard about word-of-mouth marketing and how it’s the most effective. But why? Because it’s genuine. More than 80% of the consumers look for their peers’ and friends recommendations’ before purchasing a product from any business. Thus, this is your chance to convert your loyal customers into referrers and offer them discounts, coupons, or any reward when they promote your brand and convert customers.
As mentioned above, sales promotions are a great way to gather attention and introduce people to your brand and products. Although the profit might be less, there is no quicker way to guarantee a sale or a conversion than by offering your customers discounts and offers that they cannot refuse. Sales promotions offer multiple benefits for your business, the only way to make sure they are effective for you is by devising a proper strategy for each offer and making sure it’s being followed. Between being overly clingy and offering too little, there is a sweet balance that you have to find to make it work.