Know What is Pre Order System and How to Best Practice
If you are launching a new product, the pre-order system is one of the ways you need to consider in a marketing plan. Pre-orders can help you create buzz on social media and build momentum ahead of your product launch.
Another benefit is that you can gauge how much there is market demand for your new product and, most importantly, generate initial sales to fund its production and future marketing.
Take, for example, Sony’s Playstation 4 pre-order strategy: with innovative products, a release date approaching Christmas, and strong pre-launch marketing, Sony has managed to get more than 1.5 million orders worldwide.
What is a Pre-Order?
Pre-order is when you are about to launch a product that has not been produced, or that has not been sold, but will be launched and sold on a certain date or time. By allowing upfront ordering of a product, your customers can either pay a deposit or pay the full amount for a product to be able to order it before it’s available, so they will receive the product as soon as it is launched.
The pre-order strategy is very effective at creating a sense of excitement and exclusivity for customers on a product.
When Should You Run Pre Order System?
You shouldn’t use a pre-order system for every launch. This system will be more effective with completely new products – products that one person feels they should have earlier than others.
It takes a lot of time and hard work to run a successful pre-order system, here are the reasons why this system is better suited for large corporate events or product launches, such as:
- MSMEs that have just launched new businesses to the market;
- Your newest premium product;
- Limited edition products or special items, such as limited edition Christmas products;
- When you hold a promotion or a massive discount for an existing product.
How to Build a Successful Pre Order Strategy
The pre-order strategy needs to be well considered, thought out, and well-executed so that you have a greater chance of success. The pre-order strategy must be planned, from the product itself to marketing for pre-launch, at launch, post-launch, and inventory management for fulfilling orders.
Develop a Pre Order Plan and Timeline Based on the Life Cycle
The most important part of a product launch is not the days before launch, or on launch day, but in the weeks and months before the product launch. Therefore, you must develop a solid plan and a coordinated timeline.
ScaleFast discloses that 28% of all orders for a product take place on the first day of pre-order opening, which is usually set between 4-6 months before the product is officially launched. After the pre-order opening day, ScaleFast identifies a “dead zone” for the next 7-10 days (buzz on social media subsides, the situation tends to calm down, and there are no orders).
A spike in orders usually occurs after you’ve done your marketing and PR activities. When the day of the product launch approaches, there are usually two types of audiences waiting for the day, namely those who have pre-ordered and those who are potential customers. The buzz will return to social media, your product launch – if it is your marketing success – will be talked about by many who can’t wait to own the product.
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