Sales promotions will drive your revenue, with 93% of shoppers will use a coupon or discount code throughout the year, highlighted by Convince&Convert. Offering customers sales promotions is a fantastic way for your business to increase its sales, improve your brand image and boost your revenue. In this article, we will look at how the best ways to incorporate sales promotions and offers into your business to win more deals and grow your business.
A sales promotion or offer is when a business designs a strategy to increase its sales and encourage customer loyalty by increasing the incentive of its product or service, usually with a discount or special offering. This marketing strategy by businesses will increase the demand for what they are offering.
This section will look at the multiple different types of sales promotions that can be invaluable to your business.
Discounts are possibly the most common type of promotional offer that businesses offer their customers. A discount is a cost reduction, for example, “20% off until the end of the month”. Offering discounts like these are a great way for businesses to create incentive and urgency for their customers to purchase a product or service from your business.
A good example of this is the brand “Bulk”. Bulk is a fitness brand, and they offer regular discounts on their website for their customers and send exclusive discounts to their previous customers through text or email. These promotions keep customers coming back and attract new customers with the good value for money they will get.
For online sales, a great promotional offer many businesses use is free shipping. Usually, a customer would have to pay a delivery cost, however, if the business offers free shipping for a limited amount of time, it will save the clients money and create urgency and incentive to make a purchase. This is a very effective method for increasing sales, as Baymard Institute shares that through studies they found that the average card abandonment rate was 69.9% and 48% of the time this was due to extra costs being too high, e.g., delivery fees.
Businesses have different strategies when offering free delivery, with some businesses offering free delivery with a minimum spend. A good example of this is the company Next. If you spend a certain amount of money when checking out at the next, you will be given free delivery. This increases the incentive for customers to purchase more from your business, increasing your revenue and sales.
Many companies offer free trials or samples of their product. This will give customers the opportunity to try your product or service and experience the value they will get from it, increasing the incentive and desire for them to purchase the offering from you.
A good example of a service that provides a free trial is Amazon Prime Video. Amazon Prime Video offers customers a 30-day free trial, allowing them to get the full experience of watching TV shows and movies free of charge. This will get the customers engaged with the platform, making it likely they will purchase it once the free trial runs out.
Referral programs are a fantastic way for businesses to grow their business with promotions. A referral program is when a business will ask an existing customer to refer someone to the business and reward them. This reward can be in the form of a discount, a free product, or something else that suits the business. This is a great way to get new customers into your business, as customers who are referred to your business are 4 times more likely to make a purchase, shared by TrueCash Universe.
Uber is an example of a business that uses a referral program very effectively, where users will get a referral code to pass on to someone, and if that code is used the existing and new customers will get a free trip. This is a great way to give your customer incentive to help grow your business, resulting in more customers and revenue.
To implement a successful sales promotion that will have the best impact on your business, it is crucial you:
Here are the common mistakes made with promotions/offers:
If you run sales promotions and offers too often, they will lose value for customers. Sales promotions and offers should create urgency and incentives for customers. However, if there are always sales promotions and offers running, the urgency is lost as it becomes the norm for the business.
Without measuring the success of your sales promotions and offers, you will not know which ones your business should focus on to win the most sales and generate the most revenue. Instead, measure the success of your promotions to know which ones your customers respond to, helping you have successful promotions that grow your business.
Diversity in the deals you offer customers is key to keeping them engaged and interested in your business. If you always offer customers the same deals, they will become disinterested in the promotion as it will not feel unique or exciting to them anymore. You should instead focus on offering a variety of different sales promotions to keep customers excited about your deals. This can include different discounts and free trials.
Here are some key benefits that sales promotions and offers will bring your business:
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Book a demo with us where we can show you live how TEB will your sales process will elevate your sales performance, boosting your revenue and growing your business.
