Are your sales decreasing? Is your business performance slowing down in the crisis? During these times, most businesses run to a well-known solution: giving promotions. Promotions are an instant fix to boost sales which delight a lot of businesses with the sudden increase in revenue.
But if we look into it further, giving promotions is not all good news for businesses. Giving too many promotions can create a bad image and customers will only come whenever there is one. Customers will undoubtedly question businesses’ true quality, and you’ll notice your business revenue having an unstable pattern, being so high around promotional periods but stooping so low any other time.
Giving promotions is not all good news for businesses.
How to do marketing promotions the right way to increase sales for the long run while preserving the business image? Check out these tips to maximize your marketing promotion strategy!
Creating a discount promo
Set your promotion goalBefore determining the type of discount promo to give, you need to first set your promotion goal. Are you creating this promotion to acquire new customers, boost sales, encourage repeat purchase, get rid of old inventory, or any other purpose?
Determine the type and termsOnce you have a clear promotion goal, it will be easier to choose the proper type of promotion. Let’s say you are a brand new business with no customers. You clearly need a fantastic promotion to acquire new customers. You can offer Buy 1 Get 1 or a ridiculously low price at a limited time every day. After that, you can set the terms customers need to fulfill to get the promo, if any. In this scenario, as your goal is acquiring new customers, you can ask customers who want your promo to share about your business on social media to help you gain exposure.
Share promotional information as much as you canNext, make sure information about your promotion reaches as many people as possible. Aside from social media, you can also make use of printed media placements in your store, website banners, or using endorsers. If your business is joined on an app such as the TADA Wallet, you can send SMS or push notifications to customers about your ongoing promotion. Getting this notification creates a sense of urgency that makes them want to enjoy it while it lasts.
Examples of interesting discount promos
Are you still unsure what type of discount promo you want to make? Here are some examples of interesting discount promos to choose from.
Bundling promo of different productsWith bundling promo, you can offer discounts to customers who buy bundles consisting of different products. This promotion helps you increase the number of products sold and revenue per order. You can also create bundles from most favourite and less popular products, allowing customers to try your less popular products and improve their movement.
Prepaid promotionNext, you can give discounts to customers who pay in advance for your products. This promotion suits you if you are planning to launch a new product. Build hype around your product launch by offering a special discount to those of your customers who agree to pay for it before it launches! This promotion also helps build cash flow.
Bulk promotionOffer discounts for customers who buy more of the same item. This promotion suits you well if you want to clear the stocks of a certain item in your inventory.
Seasonal promotionCertain holiday seasons put customers in the habit of shopping more than they usually do. These moments usually happen around school break or festive holidays. Make use of this holiday mindset and offer discounts at this period.
Free shippingFree shipping is a popular promotion by businesses that offer delivery service, especially since more customers are getting used to shopping from home. Shipping fee is actually one of the determining factors in customers’ online purchase decision. By giving free shipping promotion, you take this burden off their shoulders to convince them into making a purchase. To maintain your margins, set a limited amount of shipping fee you’ll cover or a minimum amount for customers to buy before they can enjoy free shipping.
Promotion tips to increase sales
In creating a marketing promotion strategy, you need to ensure the promotion works for customers and does not cost you too much at the same time. How?
Leverage customer dataIn creating promotions to increase sales, you need to know who you’re selling to. How’s their buying power? What kind of products do they prefer? By capturing and analyzing customer data, you can create more desirable promotions for them.
Make segmented promotionsEvery business has a few types of customers: customers who are already loyal or make repeat purchases, inactive or dormant customers, and new customers. You can create promos that cater to specific segments such as new customers or customers who have not bought from you in a long time. This helps you get sales from groups that usually make little to no contribution to your revenue, while preserving the margins of those loyal customers.
Do some upsellingSometimes, big promotions are the only way to go for businesses. To balance the high cost, you can do some upselling of your non-discounted items. When customers come to get your promotions, offer them your non-discounted items as well and who knows they’ll still be interested to buy.
Marketing promotions need to be done right so they work in increasing sales while preserving business image. While promotions are an instant solution to boost sales, especially during critical times, the wrong types of promotions can cause severe loss to businesses. There are many types of discount promotions to pick from based on your business goal. You can offer bundling, bulk, seasonal promotions, and many more. It’s important to get to know your customers to come up with the best marketing promotion strategy that can boost sales, make them keep coming back, and cater to specific customer segments, all while saving cost.
Do you have other questions about setting up the perfect promotion for your business? Do not hesitate to contact us as we’ll be more than happy to help!