Sales promotions are incentives companies offer to encourage customers to buy products or services. This marketing strategy is used by businesses to appeal to their target market and convince them to purchase their items. It has proven to be the most effective way to achieve business’ goals. These include increasing sales or revenue and creating customer loyalty and awareness. Plus, sales promotions also help brands to gain insights into customer behavior.
Table of contents
- Ideas For Sales Promotions
- Advantages of Sales Promotion Ideas
- Sales Promotions: Understanding Your Customers!
Ideas For Sales Promotions
If you are looking to raise your revenue, you should implement the following ideas for sales promotions:
Buy One, Get One (BOGO)
The term “buy one, get one” or “BOGO” refers to a popular type of sales promotion. Customers can take advantage of these deals by purchasing one item and receiving a free or discounted product. BOGO sales can be a great way to sell more products and eliminate inventory by getting customers to buy more than they thought they would. Consumers like receiving free or discounted products, so BOGO inspires them to purchase from your brand.
BOGO promotions can also boost your up-selling and cross-selling incentives or move products that do not sell well on their own.
One of the most common and successful sales promotion strategies is discounts. You can offer them in a variety of ways, including a discount of a certain percentage or dollar amount off the purchase price. Customers appreciate discounts because they offer good value.
It is a powerful incentive for prospective clients you have already built a rapport with. However, their only objection is the price. A good discount can help them to get off the fence and make the purchase.
Customers who use coupons feel like they are the only ones who can take advantage of a deal that not everyone else can. Coupons can be given to customers as a thank you for purchasing, as a birthday present, or as an incentive to sign up for a newsletter. In contrast to discounts, they are typically available to anyone who purchases the product.
A 2020 survey found that 88% of respondents said they used coupons to shop. This shows how popular they are.
A voucher is an endorsement or report that can be traded for an item or administration. Because customers can use them to get discounts or free products and services in the future, they are frequently used as promotional incentives.
During the pandemic, for instance, numerous airlines, including Delta Airlines, offered vouchers to customers who had to reschedule their travel plans.
After a customer has made a purchase of a product, you can offer them a rebate – a partial refund. It will encourage them to make another purchase. Because the customer pays a certain amount less than the usual price, these work like sales. However, they are distinct due to the fact that you are returning the customer’s money – either in the form of cash, a check, or store credit. This may cause them to believe that they have benefited more than in a conventional sale.
Social Media Giveaways
If your business has an established following on social media platforms, social media giveaways can be an effective idea for sales promotion. To get people to know about your product, you can hold a social media giveaway. Additionally, this kind of sale may assist in expanding your social media following.
For example, Curver offers giveaways on various social media channels. You can enter them by doing things such as liking a post, following their page, or inviting friends.
Customers can conveniently make purchases with gift cards, which serve as a tangible reminder of your business. Also, gift cards are a great present idea for holidays like Christmas, Easter, Mother’s Day, and so on.
Research Dive projects that the global market for gift cards will generate $1,396.01 billion in revenue between the years 2021 and 2028. Gift card sales present a fantastic opportunity for businesses right now to increase revenue.
Abandoned Cart Promotions
The average rate of cart abandonment is 69.57 percent. Digital cart abandonment accounts for approximately 75% of the sales lost by the average e-commerce store. Therefore, sending promotions about abandoned carts is a useful sales promotion strategy.
In practice, you can monitor when customers abandon their shopping carts on your website and follow up with a promotional email offering a discount or code to encourage them to make a purchase. The CTR of 8.76 and open rate of 43.76 percent for cart abandonment emails indicate that you have a good chance of recovering these sales.
Flash sales are dynamic promotions that only last for a short period of time. These campaigns’ expiration dates increase traffic and reduce hesitation. According to research, limited-time sales promotions are much more appealing to consumers. To avoid customer complaints, ensure that the timer is clearly visible and that the terms and conditions of your promotion contain all necessary information.
Cashback is a reward that gives customers “cash” in the form of a percentage of their purchase price to encourage them to buy more from the same company. The Kohl’s Cash program is one example of this. It gives you $10 in Kohl’s Cash for every $50 you spend at their store.
Customers can get their money back, which they can then use to purchase additional goods or services from the same company, making it a popular incentive.
For businesses that make a lot of online sales, a common sales promotion idea is to offer free shipping. You can offer clients restricted time free delivery with no base buy sum, or you can offer free transportation to clients who meet a buy sum edge. Customers who add items to their cart but then abandon it when the site adds additional costs, like tax and shipping, can be converted by this.
You might want to think about creating product bundles if your company sells multiple similar products. A product bundle is a collection of comparable products that you purchase together at a discount compared to buying them separately. If your company sells makeup, for instance, you could bundle your most popular eyeshadow palette, eyeliner, and mascara.
A great way to reward your customers for their loyalty and boost customer retention is through loyalty programs. By offering your clients incentives to keep returning to your business, you can differentiate yourself from the competition and increase sales.
Sometimes, these programs are implemented by fast-food chains like McDonald’s by giving you stickers that let you get eight free hot drinks for buying seven of them.
A sales promotion can be used to entice customers to provide feedback, which is essential to a company’s success. You could, for instance, offer a customer who makes a purchase 10% off their next purchase if they agree to complete a survey about their experience. Customers may then be motivated to make additional purchases thanks to a discount.
A referral discount program is a great way to encourage customers to refer their friends and family, as salespeople are always looking for new leads. A gift card or other prize may be offered to a new customer who is referred by an existing customer.
Viral loops claims that Uber’s referral program has a 12x ROI and was implemented to help the company expand its user base.
The above-mentioned ideas for sales promotions can be used to invite your customers to choose your business over your competitors. Now we will look at what advantages these strategies can have for your brand.
Advantages of Sales Promotion Ideas
Any business can benefit from sales promotions if they are planned with your marketing objectives and budget in mind. You can anticipate the following advantages of sales promotions from a well-planned promotional campaign:
You can use sales promotions to make a better offer to customers who are looking for cheaper alternatives and bring them back from competitors.
Encourage potential customers to take a particular action, such as purchasing something or following you on Instagram.
Better ROI Tracking
If you have a good promotion system, your marketing team should get a lot of information about your customers to figure out what makes them tick.
Smooth Inventory Management
Sales promotions can be used to introduce new products in the market and sell out overstock.
Sales Promotions: Understanding Your Customers!
The best practice for implementing ideas for sales promotions is to understand your audience. You can determine the most efficient sales promotion strategy for your business right now by determining whether you want to acquire new customers or keep the ones you already have.
Featured Image: Fast Capital 360