Three-step Guide for Effective Sales Promotion

Jun 3, 2018

Sales Promotion

Profit maximization is the number one goal of any organization. So how can an organization drive its profits? Although, ramping up the sales may not be as easy as it sounds, sales promotion does help in achieving that objective. Even in a struggling economy, people are easily lured by sales promotions. Who wouldn’t want to buy a product worth $1000 for $499? It is no wonder why people queue up for hours just to enter a store on a Black Friday. If executed properly, sales promotion give an immediate excuse for the buyers to make instant purchases. So how do you master your sales promotion?

Got a business query? Get in touch with a sales analytics experts to get your query answered.

Step 1: Target your effort

Sales promotion is powerful as it can entice purchases from established customers, new customers, and even customers from the competitors. Additionally, it can also spur customers to purchase more and stimulate business during the off-season as well. However, a single sales promotion cannot achieve all those objectives at once. This is why it is important to decide what is more important than the other so as to channel your promotional efforts effectively. The business should know if they want customers to purchase more frequently and in greater volume or they want new customers in their business altogether. They may also want to bring back their lapsed customer or boost business during the off-season. Once the business is clear on its objective of sales promotion, they ought to ask questions such as if they offer a 50% off for a new customer, will they respond to the offer?

Step 2: Plan promotional incentives

A well-executed sales promotion entices the customers to take action. Here are some ways of achieving the target:

  • Savings in price including coupons, discounts, or other value-added offers
  • Samples and trial offers to induce them to try new products or services
  • Events or experience to generate customer enthusiasm

We can help you build effective sales promotion strategies to drive better outcomes from your campaigns, request a free proposal to know how.

Once you decide on using one of such tools, there are many factors to consider. If you are planning to go for price rebates, the offer must compel the buyers to make a purchase. However, it should be designed such that the company doesn’t suffer a loss. Coupons are hugely popular these days as both young and affluent shoppers are using them. Consumers feel compelled to use the coupon they have thereby making a purchase. If you are looking to use free samples, the product must be good enough. If the samples aren’t that great, consumers are already building a negative perception in their minds. Finally, events and experiences draw customers for product launches, celebrations, special appearances. It is necessary to host the event with full enthusiasm, as a half-hearted, poorly attended event is worse than no event at all.

Step 3: Know your targets

Sales promotion is a great tool to use if you need a sudden boost in sales, that is if you are clear on what you want to achieve. It is important to set the desired sales figure before spending top dollars on promotions. Businesses then need to identify their objectives and set the desired figure, if they want to change the buying patterns, or collect customer names, or boost sales. Additionally, it is important to figure out what such changes will imply to your business financially. Knowing such a bottom-line will serve the information required to allocate a promotional budget which will yield results over time.

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