Sales promotions can be a tie-breaker between brands who offer similar products or services. In an ever-competitive market, companies everywhere are facing declining differences between products and services, increased distributor power and faster communication of alternatives. It’s no longer enough to have an excellent product at an excellent price; customers need a tie-breaker to help them decide who to give their business to.
Effective sales promotions are essential to building customer relationships and boosting your business in many ways:
- Attract new customers through brand awareness and interest
- Help ward off competition
- Boost sales during a need period
- Introduce customers to a new or improved product or service
- Support or enhance other advertising or sales initiatives
- Help cushion a price increase
- Help cross-sell another product to existing customers
- Help motivate the sales force by giving them a new sales incentive or tool
- Make your distributors, retailers, or other intermediaries happy and more willing to push your product or service
- Help you gain access to greater distribution
- Help you migrate customer to direct or web-based purchasing
- Increase repeat purchase rates and loyalty
- Maintain or increase your market share
- Attract frequent switchers – those customers who are always looking for a deal
- Attract a specific, attractive segment (or group) of customers with an offer designed for a distributed to them
- Restore or retain brand perceptions
- Make a profit
Depending on your objectives, there are several sales promotion techniques that you can explore. Some examples include:
- Off-the-shelf offers – Freebies, vouchers, discount coupons, two-for-one offers, package schemes.
- Joint promotions – Referral programs, charitable initiatives, event sponsorship, loyalty schemes, phantom partnerships.
- Price promotions – segment pricing, immediate discounts, delayed discounts, coupons, finance deals, trade price promotions.
- Premium promotions – On-pack offers, with-purchase premiums, free mail-ins, self-liquidators, brand extension promotions, business gifts.
- Prize promotions – Competitions, free draws, instant wins, games, probability promotions.
Before you launch any campaign, it’s important to define your customer, objectives and how you are going to monitor the success of your sales promotion.
If you’d like to learn more about how to create, implement and integrate campaigns that really work for your business, I’d love to learn more about your business goals and help you achieve them! Let’s talk!