Sales Promotion you can Implement to boost your Sales this Valentine
Promotions are part of a retailer’s sales and marketing mix and for good reason, because they drive sales and help you move inventory. Sales promotion are implemented to attract new customers, retain present customers, to counteract competition, and to take advantage of opportunities that might be revealed by market research. It is made up of activities, both outside and inside activities, to enhance company sales.
In this post. We will be shedding more light on the ins and outs of promos and listing the most common types of sales promotions in retail along with some handy tips to help you implement them correctly.
What is Sales Promotion?
Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales.
This strategy is usually brought to use in the following cases –
- To introduce new products,
- Sell out existing inventories,
- Attract more customers, and
- To lift sales temporarily.
Sales promotion generally involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free).
Now let us discuss the different types of sales promotion.
- Percentage discounts
The percentage off deal (e.g. “20% off” or “50% off”) is one of the most popular and most effective types of promotions. Adding a discount to your products is possibly the most popular type of promotion. Customers love to grab a bargain, so it makes sense to offer discounts every now and then. When it comes to deciding the way you choose to promote, think about what will look more attractive to the buyer. Always consider your bottom line and try not to make it a habit, as people will just come to expect this as the norm.
- Make sure your discount is attractive
- Consider your bottom line
- Don’t do it too often
- Flash Sale
A flash sale is basically an offer that only lasts for a limited time and it’s a great way to create a sense of urgency for the customer to buy. Many retailers are now adopting this strategy as a way to sell more products and get rid of surplus stock. Monetate found that 56% of businesses agree that flash-sale campaigns are better received than regular campaigns. The more successful flash sales are ones that do not last very long and 50% of purchases occur during the first hour of a flash sale.
- Market your flash sale with a recognizable visual
- Put a shorter duration on your sale
- Promote via email and on social
- Buy More, Save More
This kind of deal entices the customer to buy more of your stock, so it is kind of a win, win. There will be plenty of potential customers visiting your store that want to buy, but feel guilty because of the price. Giving them a discount if they spend more, may just give them a little shove in the right direction. You do not have to offer a huge discount, but make sure it’s attractive enough to convert visitors.
4. Product Giveaways/Branded Gifts
Everyone loves a freebie so this is a great promotion. Not only does it give potential customers the chance to test out your product, but also it entices people to buy your stuff! If your product is not something that you can give away, then think about creating some useful branded gifts that you can offer with each purchase. Think along the lines of keychains, bumper stickers, magnets, pens, etc. Customers will appreciate the gesture and will think of you whenever they see their branded gift.
- Loyalty Points
Rewarding your customers will help you build a solid base of loyal fans and it will entice people to shop more at your online store. Providing great customer service is so important to the success of your business, and offering a loyalty point system is a popular promotion. You could think about setting up a virtual card: The customer can gain points every time they buy and then use their points to get money off future purchases, or if they buy 9 items, they get the 10th free.
Helps build a loyal customer base
Provides better customer satisfaction
Provide them with a loyalty system to keep coming back
- Coupon Giveaway
This is a different way of promoting discounts. Sending your customers virtual coupons will make the promotion seem more exclusive and will give the customer more of a push to visit your online store. Think about sending coupons to loyal customers that have spent over a certain amount. You could also consider sending coupons to visitors that have experienced bad customer service, to try to convert them back to happy customers!
The great thing about running a competition is that you only have to give away one thing, but you gain so much – making it a popular type of promotion! It will not only help raise your profile but every person that enters will then become an email contact that you can try to convert into a sale. If they are entering your competition, chances are they are interested in your products, so running a competition is a great idea – particularly for start-ups.
- Price Match Promise
Price match promise has fast become one of the most popular ways to promote your brand, particularly if you have many competitors out there. It allows your customers to shop with you and will be safe in the knowledge that if they can get it cheaper somewhere else, you’ll refund the difference. There is nothing to lose for them and it means that you still get to keep a solid customer base.
Helps you stay ahead of the competition
Provides a no-lose situation for the customer
A bold move will build loyal customers
- Holiday Promotions
There is a reason that holiday promotions are so successful. Customers always like to spend more around the holidays, making it the perfect opportunity for you to get your brand out there and sell more products. You do not have to go too crazy on your offers, but enticing customers with slight discounts will always work in your favor. It is also the perfect time to get creative with your promotion and use the theme of the holiday, to sell your products.
Even with amazing promotions, your customers might still face hesitation when making a purchase particularly if you are selling high-end merchandise. For these cases, try to find ways to make shopping at your store more “budget-friendly.”
You can do this through flexible payment options such as VPCART- AFTERPAY, this module divides transactions into four equal installments due every two weeks. This way, you can improve the conversion rate, reduce cart abandonment and also increase average order value.
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The first question you should ask when considering promotions is not “What type of promo should I offer?” Rather, it should be, “What do I want to achieve?”
Start by identifying your objectives. Do you want to increase foot traffic? Boosts your bottom line? Are you trying to make room for new inventory? The answer will help you decide on the right promotion.
If you want to draw people into your store, for example, then an attractive discount might be the way to go. On the other hand, if your goal is to move inventory, then you should look into BOGO or multi-buy promotions.