Consumers are perpetually hunting for bargains, offers, and a better deal.
Around 83 percent of online buyers surveyed by Statista said they consider price comparison online before purchasing.
And, why not?
It empowers consumers to get the best value and feel smart.
Well, a well-tested set of strategies is going on the other end to make consumers experience this, known as sales promotion.
In this blog post, you’ll learn 7 sales promotion techniques that can help you attract customers, increase sales, and boost your business's bottom line.
What is a Sales Promotion?
Sales Promotion is a marketing strategy to stimulate short-term demand for a product or service, to increase sales.
Think of sales promotion as a temporary offer or campaign businesses use to accelerate sales for a certain period.
Why do Marketers Need Sales Promotion?
No matter how well the sales operations are performing, there comes a time when they need a boost.
Traditional marketing strategies may take time to show results but businesses experience immediate and tangible results with sales promotion.
Drive sales
With sales promotion, businesses stimulate demand and increase sales by creating urgency, both short-term and long-term.
Increase brand awareness
Promotions are one of the tested ways to increase brand visibility and recognition. Although, it depends on business-to-business and budgets.
Attract new customers
Promotion can attract new customers who may have yet to consider your product.
Clear inventory
Promotions can help to clear excess inventory.
Build customer loyalty
When you offer promotions to loyal customers, you increase your chances of customer retention and stronger relationships.
Generate leads
With the promotion, businesses can streamline quality leads. As the prospects or customers are more likely to engage in making a purchase.
Sales Promotion Types
Sales Promotion can be categorized into two main types.
Consumer-Oriented Sales Promotion and Trade-Oriented Sales Promotion
Consumer-oriented sales promotion: This type of promotion focuses on providing incentives directly to consumers to encourage them to purchase a product or service.
Trade-oriented sales promotion: This type of promotion focuses on encouraging distributors and retailers to stock and promote products.
Sales Promotion Techniques
Buy One, Get One Free
One of the most popular ways to do sales promotion, is the “Buy One, Get One”.
You have definitely seen these offers in quick-service restaurants (QSRs) like Pizza Hut, Domino’s, or Taco Bell.
Offering two products for the price of one creates a perception of value that attracts customers.
Flash Sale
Have you ever waited for a product to buy at a specific time as there’s an upcoming sale where you’ll get a steal deal?
If yes, you must be well aware of how effective this strategy turns out.
This technique is created to offer huge discounts for a limited time.
Free Trial/ Sample
Experiencing a product or service without paying anything doesn’t feel better for a hesitant prospect.
It gives confidence in their decision.
Businesses use it to reduce the perceived risk for customers.
Free trials reduce the risk to customers, build trust, and boost conversions.
Invite-a-friend Offers
Referred customers bring in around 25 percent higher profit margin, making it a reliable technique.
By offering invite-a-friend programs, businesses can tap into their existing customer base to attract new customers and increase sales.Along with that, it also builds loyalty for existing customers and positive word-of-mouth marketing.
Free Shipping
According to research, 70 percent of cart abandonment has been seen in 2023.
These numbers are higher in the hotel, fashion, and rental industries.
The culprit?
Shipping costs.
That’s why free shipping incentivizes customers to make a purchase. It eliminates additional costs and makes the purchasing process more seamless and convenient.
Gift Cards / Coupons
They can drive immediate sales by incentivizing purchases, attracting new customers while retaining existing ones through rewards, and boosting average transaction values as customers often spend more to maximize their discount.
Also, during off-peak times, gift cards can help to drive sales.
Bundling
Sometimes prospects need multiple products and services from the same business.
Bundling is a sales promotion technique that involves offering multiple products or services together at a discounted price.
This can be a powerful way to increase sales, encourage customers to purchase additional items, and improve customer satisfaction.
Seasonal Sales Promotion Examples
Seasonal sales are sales promotions that occur at specific times of the year, often tied to holidays or changes in seasons.
They are a common marketing strategy used by retailers to increase sales and clear out inventory.
Examples of seasonal sales include:
End-of-season sales: Sales that occur at the end of a particular season, such as summer or winter, to clear out inventory.
Holiday sales: Sales that occur around major holidays, such as Black Friday, Cyber Monday, or Christmas.
Back-to-school sales: Sales that occur before the start of the school year.
Spring sales: Sales that occur in the spring season.
Sales Promotion Disadvantages
While sales promotion can be a powerful tool for driving sales, it also has some potential disadvantages:
Reduced perceived value
Frequent promotions can erode the perceived value of a product or service.
Cannibalization of regular sales
Promotions can divert sales away from full-priced products.
Increased costs
Promotions can increase costs related to advertising, discounting, and product giveaways.
Customer expectations
Customers may come to expect promotions and may be less likely to purchase products at full price.
Short-term focus
Promotions can sometimes be too short-term focused, leading to a neglect of long-term brand building.
Ethical concerns
Some promotions can be perceived as deceptive or manipulative, leading to negative publicity.
It's important to use sales promotion techniques strategically and in moderation to avoid these potential drawbacks and maximize their benefits.
In the End
Sales promotion emerges as a huge factor in consumer buying behaviors.
When talking about promotions, one question comes to mind.
Sales promotion often requires lowering costs then how it’s a winner for businesses?
The answer is increased demand, leading to higher sales volume.
Tapping into emotions like urgency and exclusivity, added with the right timing can do wonders for your sales process.
Comments