Sales promotions can have a dramatic impact on the bottom line of any company if they are executed efficiently and effectively. These are four of the best sales promotion strategies in terms of driving new business, sales, and increasing customer goodwill and satisfaction.
Buy One, Get One Free
Also known as BOGO or self-liquidating deals, this kind of promotion is one of the most common types of sales promotion you will see – especially in the food and beverage industry. This promotion type is popular with the food industry in particular because it allows them to clear stock ahead of a new shipment of goods or before the product goes bad.
As the name suggests, it involves offering the customer an additional product at a reduced price, so it is something consumers will respond well to. This type of deal can also extend to goods and services outside of the food industry, but it is less common.
One of the big things to watch out for if you want to offer this kind of deal is overdoing it. Avoid leaving the deal going for too long or offering it too often. Oversaturation could lead to consumers undervaluing the product if they can always get two for the price of one.
Vouchers, bonuses, and coupons
This type of sales promotion is great because it generates a considerable amount of goodwill from both new and long-time customers. To reach new people, you can offer coupons or vouchers through marketing materials online or in print in magazines and catalogues, or make your existing clientele happy by printing them on product packing or handing them out in-store.
While vouchers, bonuses, and coupons are essentially different, the idea behind them all is the same – to create more value for the customer. The company appeals to customers either by offering a discount through a voucher or coupon or by creating great value for money through a bonus offer.
This kind of deal is very popular in the iGaming industry, which can be seen in the different promotions available at UK casinos. The online retail market has also found an ingenious way to implement this strategy. Reportedly, close to 88% of online shopping carts are left abandoned, so many online shops have started sending discounts for the things people are leaving in their carts unpurchased to encourage them past their uncertainty.
Loyalty and rewards programs
Loyalty programs have been gaining popularity in the 21st century because of the win-win nature of the arrangement. They create repeat business, foster goodwill with customers, and don’t end up costing the company much in real terms in the long run.
This kind of promotion involves encouraging and rewarding return customers and usually has some other kind of sales promotion strategy attached to it like discounts, coupons, or free merchandise. The versatility of the idea means it is used in a variety of industries. Still, it is most commonly seen in high volume industries like loyalty cards in retail, or business sectors with a lot of competition like the airline industry’s frequent flyer miles for business leisure and business travel.
Rewards programs are popular with consumers because they don’t cost anything or affect the buyer in any way other than to reward their loyalty. At the same time, the rewards and bonuses may have some cost to the company in the long run, the overall effect of increasing sales and gaining goodwill from the customer more than makes up for it.
Referral rewards are an old-school sales strategy that has been given a new lease on life in the digital age. The idea is simple and has been around for a long while: Reward someone for introducing a new customer to your business.
So why is it seeing such a significant resurgence online now? Well, with the dawn of the internet, companies are no longer only competing with others within a specific geographic radius, they now have competition all over the world. There are a lot of businesses online, and it can be incredibly challenging to stand out from the crowd. Direct referrals are a way of getting around that.
It has also been know for a long time that word of mouth, and peer recommendation are among the strongest and most effective forms of marketing a business. People inherently trust goods and brands recommended to them by family and friends.
Companies online that live and die by the number of users on the platform and the number of new daily sign-ups, such as Uber, the modern version of this strategy involves rewarding both the referrer and the referee. This helps to encourage the spread of the promotion as much as possible.