The success of a company majorly depends on the consistency of the sales. Regardless of how successful a company is, there will always be times when it needs a boost in sales. It may be at the start to establish a clientele, or later on when business is sluggish. During these times, you can make use of sales promotion strategies to leverage better sales.
In this article, we will be focusing on consumer-oriented sales promotions and discuss what a sales promotion is, the types of sales promotions and the importance of sales promotion tools and techniques. We will elaborate on how the right marketing automation tools can be leveraged to implement your sales promotion ideas.
What is Sales Promotion?
Advertising and sales promotion is essentially a transitory campaign or offer that is used by a company in order to boost interest in or demand for the products and services. This includes sales promotion ideas that are strategically executed to get new users as well as to strengthen relationships with existing customers.
Advertising and sales promotion is essentially a transitory campaign or offer that is used by a company in order to boost interest in or demand for the products and services. This includes sales promotion ideas that are strategically executed to get new users as well as to strengthen relationships with existing customers.
Importance of Sales Promotion
Sales promotion activities help boost the number of sales thereby increasing revenue at a certain point in time. But, they are not performed arbitrarily. Advertising and sales promotion tactics have multiple purposes behind their campaigns. It allows the sellers/business to acquire new customers while also strengthening the relationship they have with their existing customers. Focusing on consumer-oriented sales promotions, we will talk about popular sales promotion tools and techniques but before that, let’s have a look at the importance of sales promotion activities.
- Guarantees better customer retention
- Helps in acquiring new customers Acts as effective measures to beat the competition.
- Increases brand awareness and goodwill.
Types of Sales Promotion Techniques to Boost your eCommerce Sales
Sales promotions are one of the most important marketing strategies that you can use to evoke interest and nudge your customers to make a quick purchase. Be it offers and discounts for the festive season or maybe even for making an existing customer feel appreciated, sales promotions can go a long way in enhancing your business sales and building a positive brand image among the customers. Let us explore a few types of sales promotions.
1. Discounts and Offers
Discounts and offers nudge customers to make an immediate purchase. Discounts are consumer-oriented sales promotions and can be provided in a variety of methods, such as flash sales or short-term discounts, seasonally adjusted pricing, special offers on perishable items, referrals, etc. Discounts can be showcased in percentage, (e.g. 20% off all watches) or in money value (e.g. ₹200 off all T-shirts).
Here are a few examples of discounts:
- Deal of the day or short-term discounts – Offers for a limited period (e.g. for 1 day )
- Discounts as per seasons – reduced pricing when there is a low demand (e.g. After the festive season)
- Discounts on perishable goods – end-of-the-day clearance prices (e.g. fruits and vegetables)
2. Free Sample or a Giveaway
Free samples are an instant attraction and one of the best sales promotion activities. You can provide a free product when the customer purchases a product or avails a service for a specific amount. You can also improve the apparent value of the purchase at minimal extra expense. It’s a flexible option with a relatively low risk that can raise customer satisfaction.
Here are a few examples of free samples:
- When a customer spends at least ₹7,000 on a saloon services, a sample hair serum is given.
- You can provide bonus features when an online subscription is purchased.
Free samples are one of the most effective types of sales promotion that gives your customers a chance to try out your products and leverages sales.
3. Promotions using the ‘Buy One Get One’ Strategy.
Price reductions are one of the types of sales promotion activities that are only temporary and hence encourage potential customers to take immediate action. The buy-one-get-one strategy is where you will charge for one of the products, among the two chosen by the customer, whose price is higher than the other one. Or you could keep a cap on the price range for the products that can be purchased under this scheme. You can check out Clevertap to amp up your promotion efforts and build engagement as well.
4. Organising Competitions
Competitions that offer a scope to win prizes are one of the types of sales promotion which is a good approach to spark interest and keep your customers engaged. You can conduct competitions through numerous ways like social media, in-store promotions, business events and shows, etc.
A few benefits of hosting competitions are:
- Expands the email lists through an email sign up
- Great engagement on social media
- Creates brand awareness and buzz
5. Loyalty Points
Loyalty points are a way of rewarding your customer for the purchases they make wherein every time they purchase a product, loyalty points get added to their account. The customers can redeem the points to get an offer on the products they purchase in the future. It is one of the best customer oriented sales promotions where your customers benefit from purchasing from your online store regularly. Loyalty points can
- Increase customer satisfaction
- Encourage your customers to indulge in more purchases
- Expand your loyal customer base.
6. Combos
You can enhance sales by combining products or services at a lower rate. Needless to say, they are one of the best types of sales promotion tactics. There are multiple reasons why you should do leverage this tactic:
- Allows customers to feel that they are receiving great value for their money.
- Makes it possible for you to cross-sell and upsell your goods and services
- Minimises direct comparison with the competitors in the industry.
When the services and goods naturally complement one another, this works best. For instance, you can provide a combo offer for a pant and T-shirt for ₹1000 less than the total cost of those two products.
7. Coupons and Vouchers
Coupons are popular types of sales promotion activities because of their versatility. Since you’ll know how many customers have made use of the coupon, the success of the sales and offer promotion can be closely monitored.You can make use of them to drive in new customers by using first-purchase coupons. You can also send special vouchers for occasions like birthdays and anniversaries to keep existing customers feeling valued and appreciated.
Here are a few best examples of how coupons and vouchers can be used:
- Using a limited-time discount or a promo code to promote quick purchase in the app.
- Running social media ads showcasing offers and coupons codes.
- Collaborating with another company to market both of your products or services. For instance, you might give your clients a voucher for the products of the brand you are collaborating with.
8. Rebates and Referrals
Rebates are moneyback granted to a customer when they make a huge purchase. For eg: When a customer purchases for ₹10,000, a rebate of ₹ 1000 can be given to purchasing a product worth ₹1000. This is one of the best ways to encourage customers to make huge purchases from you. You can also do a Year-End Rebate where the customer is granted credit or money back for the purchases they have made or the services availed throughout the year from your brand.
Referrals are also one of the best sales promotion activities. In a referral, a customer can refer a friend to try out the products and services. On referral, the existing customer and the referred new customer are granted a coupon or discount code which they can make use of to avail an off.
9. No Shipping Charges
The price of shipping could be a deterrent for buyers from placing an online order. You must consider the shipping cost when you decide about pricing and taking payments online.
By promoting up-selling and cross-selling, a brief sales promotion with free shipping can raise the average order, conversion rate (number of purchases), and conversion rate (number of purchases). For instance, if you operate a retail business and want to increase sales, you might provide free shipping for a substantial cart value.
10. Donations
Customers are becoming more and more interested in doing business with ethical and ecological companies. Mostly millennials and the gen z population- whenever they are buying products, they like to contribute to the environment or other causes.
Thus, customers will feel even better about their purchases and about doing business with you if you donate a portion of your sales or earnings to a charity or cause.
Additionally, your company will gain a reputation for being socially conscious.This can be for a specific time frame (e.g. for the month of December for Christmas). Pick a charity or cause that resonates with both your customers and your business
The above are a few types of sales promotion strategies that work to boost your e-commerce sales. You can use a few of these strategies in combination together to see if it works for your business. Carry out a trial and error method over the course of time and shortlist the strategies and consumer-oriented sales promotions that leverage good sales and carry them out as a part of your sales promotion strategy. Likewise, you can leverage more eCommerce tools and platforms to further scale your business and continue growing.
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