Sales promotion can be the magic bullet in your quest to achieve your revenue target. However, commissary people should strive to enhance their closing skills rather than overly on merchandising discounts to hit their targets. While discounts might facilitate the customer's choice to work with you, leading to increased incomes, it helps to improve the sales process rather than disrupt it if well built and used wisely. This article offers advice on how to increase the effectiveness of your trading campaigns.
What is a sales promotion?
A sales promotion is a form of advertising in which a company employs temporary campaigns and incentives to increase product demand and brand recognition. In most cases, this tactic helps to generate short-term interest in a brand, a product, a deal or an event.
Consumer and trade promotions are the two main forms of sales advertising. Marketing efforts that directly target end users are called consumer trade promotions, whereas marketing efforts that directly target intermediaries like retailers and wholesalers are known as trade sales support.
Best methods of promotion to increase sales
How do you know you're making the most of your business's promotional opportunities? Do you ever find it difficult to decide what you ought to do and when to do it? We have compiled a list of eight most often-used sales promotions to point you on the correct path.
1. Giveaways
Giveaways remain one of the greatest instances of any sales campaign. Customers are exposed to new items they would not have previously considered and are frequently warmly encouraged to purchase just by receiving a free sample. For instance, do you want to market anything specific? Donate samples! Spas and salons may do this with sample lotions, fragrances, or aromatherapy items. However, giveaways are most effective with food (in-store and at farmer's marketplaces). People want products that they can test before they purchase.
2. Product discounts
Providing a price cut on items is one of the most common forms of promotion. Customers are always looking for a deal, so it's smart to give them one sometimes. Consider the buyer's perspective when considering if a promotion using a percentage or a dollar amount would be more effective. Consider your bottom line and avoid having discount sales too often, as customers will learn to anticipate them.
3. Coupons
Discount coupons are included with purchases. A coupon is a discount voucher redeemable at a lesser price. If the regular price of a product is $100 and the customer presents a coupon for a discount of twenty percent, you will sell the goods to the consumer for $80. In the same way that stores take cash, they also accept coupons.
Typically, coupons serve two distinct purposes. First, they motivate shoppers to take advantage of the offer. Second, they act as an incentive for the channel to keep the products in stock. Offering coupons attracts customers and encourages retailers to buy your product. They help in the launch of new products and also help boost sales of established ones.
4. Buy One, Get One Free (BOGO)
The biggest merchants in the world often employ the buy-one-get-one promotion to increase sales. Many shops implement buy-one-get-one (BOGO) discounts to clear out old stock. This tactic, also known as liquidation, may be useful for eliminating excess inventory at bargain rates. Just using the term "free" is enough to draw in clients.
5. Cost-free shipping & returns
Some popular companies provide free shipping and returns to their customers to enhance their shopping experience. For instance, any items shipped by Amazon have a 30-day return policy, barring some exceptions. As such, a customer can return the product if it's unsatisfactory. Likewise, Amazon offers free shipping if you meet the minimum threshold of eligible products. Customers may rest easy knowing they won't lose anything if they return an item where shipping and handling are free. You can incorporate the cost of delivery into the price of the goods or consider providing free shipping for orders over a particular threshold if you're concerned about your profits.
6. Provide branded offers or freebies
Providing more for less is always appealing, so consider offering discounted bundles of your most in-demand or related services. It is a fantastic strategy for generating buzz about your company. You can also offer gifts to new and old consumers with your brand's logo. More dedicated customers mean more frequent usage of branded giveaways. Who knows how many people will hear about your brand, remember it, and check it out? Bundles and branded presents may attract a lot of new customers.
7. Loyalty programs
Customers rewarded with discounts and other benefits as part of a loyalty program are more likely to make additional purchases than they would if they were not a program member. It makes loyalty programs a sales promotion. You can motivate a customer to participate in your loyalty program without them incurring further costs by giving them a free sample size product with each transaction.
8. Flash Sales
A flash sale is an offer that is only valid for a short period; this is done to encourage customers to make a purchase quickly. Many stores use this method to boost sales and clear out unsold inventory by hastening the buying process and communicating the need for immediate action. It would help to realize that most customers make their purchases during the initial hour of a flash sale, making short-duration deals more profitable. Users who want to benefit from a discount may feel compelled to act quickly before the offer expires, which may greatly increase sales.
Which sales promotion methods should you try?
The above eight methods of sale promotions are all viable for your business, but there are no hard and fast rules. What constitutes the "right" may vary depending on your business's offerings, target market, and pricing strategies. It can help to use scarcity and urgency as persuasive triggers in your advertising strategy, but the bottom line is to choose the right sales promotion for your business. For instance, you can opt for giveaways if your target audience wants to try your product for the first time. On the other hand, a flash sale can be the perfect option if you want to clear old stock. Product discounts are also an excellent way to persuade customers that they are making the most out of their purchases, which might trigger impulse purchases.
Deciding which sale promotion to go with is a fine line, but when you find that sweet spot, your bottom line will thank you. Ensure your audience can also see what promotions you are offering, and digital signage is one of the best ways to gain your customers' attention. Consider the Look DS platform to manage your displays and update your promotions in real-time. For instance, you can display whenever there's a flash sale or even a giveaway on your screens. You can also have QR code-based loyalty programs. By displaying them on screens where people are more likely to gather, like the exit/entry points and POS, your clients can easily scan them, creating a massive impact on your campaign.
