Nowadays, almost enterprises apply a lots sales promotion activities in order to not only deal with the inventory but also surpass the sale figures. The discounts can make effects on hitting the customer’s minds when telling them that they can save money by purchasing the product at the lower price than normal. Therefore, using coupons, discounts and deal campaigns as a tool to attract customers always plays an important roles in advertising and selling because it promotes the sale amount and deals with the inventory. However, applying the sales promotion program the wrong way will make the your sales ineffectively and effect the store’s reputation negatively. Follow me to research the potential for promotions and some tips to use them effectively for your own business:
First part: A list of 8 popular types of sales promotion
1. Percentage discount
This is the most common and highly effective method. For example, 20% discount on different products or 50% discount on promotional products. If you apply the percentage discount on the whole items at your store, it will attract more customers, for example, 5% off the entire store.
2. Reduce a fixed amount
Another promotion that replaces the percentage discount is the discount on items with a fixed amount. For example, a reduction of $3 for 30ml CBD tincture bottle. This types of promotion make the customers easier to know the items price after adding the discount so that they will be less confused with this promotion than a percentage discount.
3. Buy one get one free (BOGOF)
Buy one get one free is another popular promotion among retailers. This method help sellers move the inventory while profiting. For example, one retailer has a range of dog accessories in stock, each costs $5 and retails at $15. If the store offers a 50% discount, they will receive a profit of $2.5 each. But when applying a BOGOF, the store will sell 2 items at the same time but still profit $2.5 each. By selling multiple items at once, you can solve your case of slow-moving inventory while staying in the positive.
Perhaps you often see promotions like buy two get one, buy two get one 50% off, buy three get one free, etc. This is multi-buy promotion option when making a promotion if the seller wants to move the inventory thoroughly. But its success mainly depends on the type of product you sell.
5. Savings promotion
You often see in many products often add parts such as "save 2 dollars" or "save 6 dollars". This is how many business owners make and excite buyers. For example, a 500ml shampoo bottle is sold at $10, the manufacturer will produce a 600ml shampoo bottle sold at $10.5. Then, customers tend to buy a 600ml bottle because it could save some money than the rest.
6. Free shipping
If you are using the online sales method, the free shipping method is a good campaign that you can implement. Free shipping always drives the most conversions.
7. Giveaway program
Offering free products seems like a reluctance to many businesses. However, its impact can bring in greater revenue than the value of the given product. That's because giveaway programs often lead to a greater level of interaction than traditional promotion campaigns and increase the reach to your customers as well. The giveaway program can also improve the brand reputation and strengthen customer loyalty while clearly showing the positive aspects.
8. Free samples
Businesses can get many benefits from providing free trial products with small samples to customers. Although this form has existed for a long time, until now it is still very popular with not only customers but also manufacturers. Trial samples hit consumers' mind directly when they have the opportunity to access new brand products for free, which makes it easier for customers to purchase. In addition, businesses will bring their new items to consumers to advertise and increase sales as much as possible.
Second part: Some tips to use promotion to attract customers
1. Bring a sense of urgency
Avoid creating promotions without expiry date, as this will make people uncomfortable. It's best to bring promotional offers that attract customers for a limited time to encourage customers to buy them as soon as possible.
This is one of the reasons why flash sales are really effective. Shoppers know that this program won't last long, so they decide to buy quickly.
2. Create a topic
Creating your promotion on a specific topic such as Valentine's Day, Christmas, etc will make it easier for people to capture and remember your ad.
3. Find an affiliate partner
Your main purpose for offering many promotion is to encourage sales and pururchases in order to increase your revenue. That means your discount offers are used by as many customers as possible. Therefore, your tasks are finding an affiliate partner which support you in bringing your coupon codes and promotion codes to more shoppers. That partner should be a well-known website updating the daily promotion discounts from the large number of brand stores all over the world so as to increase your reputation. An address you never want to miss is Couponupto which is considered as reputable website specializing in offering the latest promotional codes from the giant online stores such as Amazon, Kohls, Walmart, Beddinginn, etc. It also provide shoppers with many useful saving tips to maximize their shopping experiences. Becoming a partner of Couponupto will satisfy you because of its clear and fair collaboration method which is appriciated by its partners. Moreover, Couponupto also has a large number of traffics every month and transaction ratio is high. Accordingly, Couponupto will be an interesting partnering opportunity which can bring many profits to your business.
4. Affiliate in your loyalty program
There are many customer management tools such as Hubspot, Zendesk that support businesses to list their loyal customers and apply their ads. For example, many retail chains have applied customer loyalty. When buying at the stores, customers will save some money to buy goods for the next time.
As customers' expectations for the business and quality product increase, they will be ready to take their wallets elsewhere to experience. Therefore, make sure that the customer experience is at the center of every sales promotion you design and your promotions need to have a personalized component.