Sales Promotion: Basic, Types and Strategies for Successful Promotions
Competition to get customer attention is heavier than before; 92% of customers say better access to information (for example, online product reviews) have changed what they expect from the company. The good news is that marketers can still get attention with the right sales promotion, especially when the offer is personalized.
Other reports show 65% of customers agree to receive personalized offers and exclusive discounts have a big or moderate influence on their loyalty.
Sales Promotion is the best way for your organization to encourage prospective customers to buy your product or register for your service. If done well, they increase short-term sales but also attract new customers, ask for positive online reviews, and lead to repeat purchases.
But the bad thing will also happen we are flooded with sales promotions. The possibility is that your inbox contains full of email marketing from businesses that offer discounts, special prices, buy-one-can-one offer, lightning sales, and free shipping offers.
Customers today want the overall experience in accordance with the quality standards of their products. Customers are looking for replaces that are relevant privately, and they want to feel like companies where they are involved truly understand them as individuals.
And they want this level of involvement of customers throughout the travel customer or user journey- which means marketers must think far from their traditional way. Does not meet expectations can mean loss of customers, attract negative reviews, and damage your brand’s reputation.
Let’s discuss sales promotions in depth and promotion tips that are successful to increase profits in your business:
Basic sales promotion
By definition, sales promotion is an activity applied for a predetermined limited period of time, with the aim of increasing consumer demand and stimulating sales. Sales promotion gives prospective additional reasons to consider doing business with you and your company.
The idea is that customers are willing to take the first step and try your product – either through limited trial periods, discounts, special offers, free shipping, branded gifts, loyalty programs, or digital coupons – they will be quite happy with the results. To be willing to spend more money on their work with you in the future.
Offering discounts is a testable and correct way to win customers, increase sales, and move stock.
Not only 77% of buyers say discounts can affect their place of shopping, almost half (48%) recognize that discounts have accelerated the purchasing decision.
Discounts can be limited at certain points on customer trips – for example their first online order – or seasonal promotion or vacation. Or consider alternatives, such as offering special prices – for example, a buy-one–one deal.
Type of sales promotion
Sales promotion is classified as promotional thrust strategies or push promotional strategies and promotional promotional strategies of promotional strategy. Push strategies focus on distributors or product retailers while pulling strategies focus on end users or consumers.
Push Promotional Strategy applies especially for producers. To distribute their products through retail channels, producers must work with this channel to promote their products. But Pull Promotional Strategy applies to manufacturers and retailers, because they focus on consumers. Many effective strategies combine both.
Examples of sales promotions
1. Giving coupons
Among the most popular sales promotions, coupons are considered a promotional strategy and pull push strategy, because both can be distributed directly to consumers through retail channels. Coupons provide support to traders and encourage consumers to buy new products or buy more than one family product.
2. Provide samples
Providing samples to consumers is another example of a push and pull strategy. Offering new product samples directly to consumers can help produce demand for these products.
When offering product samples through retail channels, this creates incentives for retailers to promote products in stores. More manufacturers offer online samples along with loyalty programs.
3. Offer prizes
Gifts are products offered with purchases, such as handbags offered to customers whose purchase values exceed the minimum amount.
Prizes can be packed with products or sent to customers at their request. In such cases, offers gifts not only increases sales but can also improve the promotional distribution list through direct mail and e-mail, and at the same time selecting a mail list.
Gifts can also have a manufacturer’s logo or retailer in it, which increases brand awareness.
4. Loyalty program
Loyalty program is one of the pull strategies used with other promotional strategies. The loyalty program provides a sustainable sales promotion flow to consumers who have registered in this program.
Coupons, free samples, and prizes are first offered in loyalty programs, and then to the general public. Give points for every dollar spent, then exchange points with products are other popular features of many loyalty programs.
5. Follow the exhibition
Following the exhibition is a strategy of momentum that is often underestimated, but is very effective if implemented correctly. Manufacturers can show off their retail products as part of a promotional strategy combined with other sales promotion strategies.
Showing samples can attract attention and provide valuable marketing assistance for smaller retailers, which might produce increased sales.
The best strategy for selling sales promotions
To effectively capture your customers’ interests (and businesses), your sales promotion strategies must include the following five important elements:
1. Select the right audience
Difficulty with marketing campaigns lies in finding people who will eventually become loyal customers.
Many marketers believe that by placing large nets, they will be able to find these people only based on percentages. After all, if they contact pretty much prospects, some of them will definitely finish travel through sales channels and become paying customers. A small number of customers will become loyal customers.
The problem with this idea is very inefficient, because only a small portion of the prospect and prospective consumers are buyers, so it will take a lot of money. Instead of determining the target audience, businesses can use their limited marketing resources for better use.
The same can be said for sales promotion campaigns. To understand the best target audience for your promotion, you must first understand more about the customers you already have.
Send a simple survey to customers who ask about themselves. Offer incentives that encourage them to spend time and share their personal information.
After you have a clear idea of who uses your product or service, recognize the right type of problem that is designed to solve by your product or service.
Taking into account these two factors, you must focus your sales promotion to those who are most likely really interested.
2. Set the goal that can be measured
It cannot be denied the importance of setting goals, but there is also the power in writing it. One study showed that when people wrote their goals, they were 33% more successful in achieving it. But you must be more specific than “increasing sales” when designing a sales promotion campaign.
Ask yourself what the most important goals of your promotion are like:
- Do you expect attracting new customers, or are you more likely to focus on customer retention?
- Do you want your customers to buy more often, or do you want them to increase the average number they spend for a purchase?
- Have you tried to improve your business during a slower season or time?
- Are you interested in getting back the attention of ex-customers who have transferred their business to another place?
Determine exactly what you want to achieve with your sales promotion, then add specific numbers – ambitious but can be achieved to the target. This will allow you to map your success or failure, and to identify the aspects of your campaign you need to change or develop further.
3. Limit availability
Behavior psychologists have found that humans tend to provide more value to the things they consider rare.
In a classic study conducted in 1975, the researchers asked participants to provide felt values into identical biscuits located in two identical jars. The only difference between the two jars is one containing 10 cakes, while others only have two.
The study found that even though there was no clear difference between cookies or jars, participants gave a higher value to jars with two cookies.
Recently, psychologists have identified the second important drivers of human behavior: “Fear of missing,” known as Fomo. This is anxiety about missing interesting events or valuable experiences that other people know.
You can take advantage of this psychological trigger by offering limited time offers. Sales promotion – such as gifts with purchases – may seem like interesting incentives to motivate sales, but unless the promotion is only available for limited or limited quantities, many customers will not be interested.
On the other hand, if the same customer is faced with the possibility of skipping promotion if they do not act quickly, they will most likely commit.
4. Promote broadly but wisely
Your sales promotion is an effort to attract customer attention to products or services in your business. But what about drawing attention to the promotion itself? In order for effective promotion, your target audience needs to see and understand it.
You can market or advertise your promotions just like other products or services. Signs in the store, information on your company’s website, blog posts, social media posts, email marketing campaigns, electronic bulletin stories, media releases, brochures, and print advertising and online everything can be an effective way to notify prospective customers about Your sales promotion.
Visibility is the key. Be sure to take into account marketing costs to promote your promotion. If not, you might spend more money for advertising than you will generate through increased sales.
For this reason, it might be most useful to focus on promotional strategies that have shown return on investment (ROI). For example, email marketing has a very high average ROI – $ 38 for every $ 1 spent.
5. Offering real value
When all is said and done, customers are only interested in one thing from your organization: value. If your sales promotion does not offer real value to them, all targeted marketing and limited time offers in the world will not make your sales promotion successful.
Ask yourself what kind of offer you think your customers are most interesting, then determine whether you can give it to them.
If you can, then you might have found a perfect sales promotion. If you can’t, scale back until you reach a compromise that will draw your target audience, while staying cost effective for your organization.
6. Review your results
Before you start thinking about the next big sales promotion, take the time to measure your results. Schedule audits and checks on your campaign to see how sales are compared to your target – and make sure you dishem at the time point that best suits your individual sales cycle.
When customer expectations for businesses increase together with their willingness to bring their money to another place, make sure that the customer experience is the core of every sales promotion you design.
Look exceed the traditional boundaries of marketing functions and destroy the organization silo to ensure a smooth customer trip. Make sure your promotion has personalized components and real-time is always a smart strategy.
Planning sales promotion is one of the things you have to do your business can get targeted benefits. Sales are lives in every business, without business sales will not benefit and end up in failure.
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