Sales Promotion: Types, Examples and Strategies
Sales are every business’s heart and soul. Without it, companies will cease to exist.
However, companies cannot sell their products and services like hotcakes every day. So when peak season starts to dwindle, marketers will want to find ways to stimulate and sustain market demand to boost company sales quickly!
Suppose a business wants to grow and be successful. In that case, it is essential to develop different strategies to promote sales. Not to mention that the marketing world never goes stagnant – trends, technology, and strategy are constantly aggressively changing.
This is where sales promotions come in.
In any type of business, keeping your own set of sales promotion strategies is vital to your business. Keeping your existing customers interested is as crucial as enticing new customers.
Today, in a technology-driven world, sales promotion strategies have also seemed to adapt to the norm. According to Forrester, 57% of organizations believe that implementing key digital technologies is critical to enabling businesses in a digital world.
However, no matter how digitized promotion strategies are adapted, one thing has stayed the same.
And it is customer-centricity.
Since customers are the foundation of your sales, it is extremely normal for your sales promotion technique to revolve around your customers. Because, why not?
You see, customer satisfaction will make your business keep booming.
But how can you do it? How will sales promotion keep your business thriving?
Let’s find out!
Sales Promotion Definition
Sales promotion is a term used to define the set of marketing strategies and technologies that aims to trigger market demands to boost or increase sales.
Basically, sales promotions are done to encourage existing, new, and potential customers to purchase your product or services.
Sales promotions are usually done in a limited time, pushing for urgency. The sense of urgency and time sensitivity sales promotions do boost customer engagement, generate leads, and foster brand loyalty.
Why Do Companies Do Sales Promotions?
There are a number of reasons why businesses give importance to doing sales promotions. Here are some of them:
1. Introduce a new product,
2. Dispose of existing stocks and merchandise,
3. Attract new customers,
4. Increase sales volume, and
5. Fulfill short-term business goals.
Objectives of Sales Promotion
Sales promotions are your business’s avenue for many things. Despite strategies being short-term and quick, they play a vital role in your marketing strategy. The following are some of the most essential sales promotion objectives in businesses.
Creating a market for new products
Launching new products is not always easy, especially in a market full of competitors. So, when a company yearns to establish its brand, the best way that it can promote its product is to invest in different sales promotion activities. Explore some sales outreach tools.
Remain competitive
Being able to stand out in a highly competitive market can be quite challenging. Because of this, companies gain momentum by using temporary sales promotions and competing with other customers in the field.
Gain business credibility
Sales promotions aim to increase sales. The increase in the number of sales helps companies gain credibility for customer loyalty and push more prospects into the sales pipeline.
Increase brand awareness
Customers always love getting incentives. Therefore, by running sales promotions, your business will have more chances of being known. As a result, you can gain customer insights that will help you further improve your performance in the market.
Retain existing customers
Getting new customers is essential, and so is retaining the old ones. To increase repeat business purchases, you have to continuously give existing customers a reason to stay. By having sales promotions, your current customers will have more reasons to continue purchasing your brand.
Increase sales during off-seasons
Some products or services have their peak season. When the peak season starts to dwindle, some goods will be hard to sell. And it is vital to keep your business going. By using specific sale campaigns, customers may be enticed to buy products at highly reduced prices.
Importance of sales promotions
Sales promotions bridge advertising and personal selling. As the market continued to be diverse, the need for sales promotions has also increased. In addition, sales promotions help remove consumers’ discontent about a product or a service.
A sales promotion campaign is essential to a marketer’s toolbox. Here are some of the reasons why it is crucial to your business:
1. Boost product knowledge
Running sales promotional campaigns can boost not only sales but also boost product knowledge. With different methods of sales campaigns available, consumers become more aware of your product, such as its use, benefits, maintenance, and upkeep.
2. Help support customer engagement
A successfully run sales promotion help in increasing customer engagement. It provokes your target audience to become interested in your products and persuades them to make a purchase.
3. Maintain sales volume
Maintaining sales volume and sales pipeline is essential to any business. If you run a successful sales promotion campaign, you can establish sales volume by reassuring your customers of your quality and product.
4. Reward current customers
Showing value to your current customers helps create loyal customers. With different sales promotions, you can nurture your business-customer relationships while sustaining brand loyalty and credibility.
5. Avoid wasting resources
For some businesses, it is inevitable to experience overstocking. And no one wants to be in this position. However, it is a waste of resources that can have adverse impacts on your business in the long run. With sales promotion, you can have a tool that can help address overstocking problems. You can sell out your inventory while having the possibility of gaining new customers in the process.
5. Generate leads
Sales promotions can lead to compelling customer acquisition efforts. When consumers are given a chance to purchase products at a reduced price, they are most likely to take the bait. This will be helpful, especially for those consumers who may not have had the chance to purchase your products before. Also, check out SaaS sales, B2B sales and tech sales.
Different Sales Strategies you Should Keep in Mind
You may notice that sales promotions can come in different forms and can be done in a variety of ways. In addition, sales promotion ideas can come in the spur of the moment; therefore, it is a must that your sales teams know these strategies to ensure a successful sales promotion.
Pull Strategy
The pull strategy, also called as pull promotional strategy aims to increase demand for the company’s product while drawing (pull) consumers towards them. By using pull strategies, your methods should focus on getting consumers to want your product.
These are usually done through discounts, buy-one-take-one deals, and limited-time offers.
Push Strategy
On the other hand, the push strategy happens when companies take their products to their consumers. The primary goal of this strategy is to bring the product (push) in front of the consumers. Typical companies who use this strategy can bring in a team of salespeople to promote their products for them where incentives and rewards are given in return.
As the name implies, the hybrid strategy is the combination of the push and pull strategy. In this sense, companies use push strategies to move their products toward the consumers while using pull strategies to ring them into purchasing.
Types of Sales Promotions
There are a variety of ways to run a sales promotion. Of course, it can depend on the type of product or service that you offer. But each one of these types boosts sales and customer engagement. So, let us focus on the types of sales promotions usually encountered by consumers.
Raffles and competition
The use of social media platforms has revamped how businesses host raffles, contests, and competitions. It boosts customer engagement on a large scale as patrons would want to win discounted or free products. It often results in free publicity, mainly when the competition includes sharing, liking, and commenting on posts.
Bundles
Product bundles offer a collection of products for a discounted price compared to when buying the products individually. With product bundles, you give customers a reason to buy a large variety of products, making repeat purchases possible. This can also be a handy sales promotion method to reduce unsold inventory easily.
Discount
Consumers love purchasing products at a discounted price. Therefore, discounts are the most encountered sales promotion tactic – malls, grocery stores, and online shops usually give out discounts. Despite being one of the oldest tricks in the books, discounts are still done as they are beneficial for both business owners and customers.
Sellers can put away their products at a lower price by emptying their warehouse, while consumers get these products at a lower price. Also, businesses offer discounts known as seasonal discounts and special discounts that are anchored on events like holidays and anniversaries, respectively.
Discount coupons and vouchers
Coupons and vouchers are great methods that can offer time-limited promotions. Coupons and vouchers are certificates that entitle a holder to a specific benefit.
For example, coupons and vouchers can contain a discount code to purchase specific items or they can contain free shipping costs and other benefits. Some discount coupons and vouchers are usually given to first-time customers to entice them to make future purchases.
Free Samples
Distributing free samples is one type of sales promotion often seen in businesses with physical stores. Many marketers offer free samples of their products in order for familiarization and awareness. This may be useful in introducing newly-launched products, new variations of an existing product, and others. Most products that offer free samples are soaps, teas, cosmetics, perfumes, etc.
Flash Sales
Flash sales are the type of sales promotions that offer extreme discounts for a limited amount of time. These types of sales promotions push for a sense of urgency to push consumers to buy your product. Many online stores that run flash sales usually utilize social media campaigns and have effectively boosted sales.
Free Trial or Free Demo
Free trials or free demos are also just some of the most usually encountered sale promotions. However, they are known to be one of the most excellent strategies to generate leads and grow your customer base.
Products like software and kitchen equipment usually use this sales promotion to give customers a first-hand experience in using the product or service. In addition, businesses typically offer free trials and demos for a limited time to entice customers to make their first purchase.
Free Shipping or Free Transfer
Some customers hesitate to engage in online sales because of shipping and transfer fees. In fact, research has shown that 70% of consumers engaging in online sales abandon their carts because of the shipping fee. On the other hand, free shipping tends to encourage more customers to make their purchases because of its convenience.
Some businesses also offer limited-time free shipping as part of their more extensive sales promo, like flash sales, price reductions, and seasonal promotions.
Seasonal Promotions
Like what was mentioned, some products do have their peak season. However, many consumers tend to buy some products during off-peak season to save money.
For example, people buy winter coats during the summer to get them for a much lower price. This could be very challenging for these kinds of products. Thus, seasonal promotions can be done to sustain and increase customer engagement during peak seasons.
Early-bird Promos
Early-bird promos have first-time purchasers as their target audience. These kinds of promos offer special discounts as a way to welcome their first purchase. Many businesses include these kinds of promos in their sales process since many customers are more likely to be convinced to buy a product at a discounted price for their first purchase.
Reward Points
Customer loyalty increases brand credibility. Businesses sustain this loyalty by having a loyalty program for their existing customers. They may come in the form of reward cards that give people reward points for every purchase. These reward points may be converted to cash or may be exchanged with another product.
And when you have loyal customers, you can also be sure to generate leads and attract potential customers because of your excellent loyalty program.
Gifts or Free Products
Of course, receiving a free product from your favorite store is one of the best things ever! Who does not like receiving freebies, right? In addition, giving a free product to your loyal customers can help foster great connections with consumers. Some businesses make giving gifts or free products to customers a staple part of their loyalty program. This is proven to help build brand recognition and sometimes increase demand for your product and services.
Upsell Promotions
Upsell promotions are not a very usual type of sales promotion. However, they can be very effective, especially for first-time customers. Upon their first purchase, they will be given a less expensive version of your product for trial which the sales team will follow up to convince them to invest in taking a fuller package at a higher price.
Sales Promotion Examples
Using sales promotion can create demand and let you have better control over the market. Many sales promotion ideas have materialized in recent years and took over the marketing world by storm. Here are some of the most famous sales promotion examples that consumers have come to know.
Black Friday Sale
The Black Friday Sale is probably the most famous sales promotion example there is. The Black Friday Sale is a seasonal sale that happens only for a year. However, because of its limited time offer and high price reduction, the intense increase in sales has always been apparent.
BOGO
Another sales promotion example as old as the hills is the BOGO promos. BOGO or widely known as the Buy One Get One promotion, is widely known for spreading brand awareness. Many customers love this sales promotion because it gets them another product for the price of one.
One of its proven effects among the existing audience is that patrons are more likely to buy products in this promo, especially when they really like the product. Some even give the extra product, which helps build the customer base through word of mouth.
Referral Bonus
Otherwise known as referral marketing, referral bonuses are great sales promotion examples that enable existing customers to bring in new customers. As a reward, customers who bring in referrals can benefit from discounts, offers, free shipping, free products, cash back, or cash rewards. Check out some sales-related guides, sales productivity, sales funnel templates, sales prospecting and sales qualified leads.
Sales Promotion Techniques and Tips Every Salesperson Should Know
Every business wants customers to consistently repeat business. With too many promotions available in the market, you have to know what works best in capturing the interest of your audience. Here are some of the sales promotion techniques and tips you should know!
Know your target audience
Among all the sales promotion tips that you should know, this one is probably the most important of all.
Of course, in order to determine what will work best for your audience, you have to know what they prefer. No matter how many strategies you have in your pocket, it will all go to waste if it does not hit the right target.
While many marketers would use a large net to catch their audience, this technique could be inefficient. To effectively generate leads, you have to come up with a sales promo idea that fits your target audience.
Because when you do, you will not only have new customers right off the bat but there will also be a high chance for them to become loyal to your brand.
Push for a sense of urgency
Remember that sales promotions are time-limited. Therefore, in creating your sales promotions, you have to emphasize that time is of the essence. Highlight the time limit whether you are promoting a flash sale, a discount code, or even a free shipping voucher!
Show your audience the reason behind the sense of urgency. They have to understand why such an offer is limited to strengthen the reason why they should purchase your product.
There is always a higher chance of people buying your product when they know that time and stocks are running out.
Promote your sales promotion
Your sales promotion should draw attention! Therefore, to run your sales promotion activities, your target audience should be aware of them first!
You have to be visible. Different types of sales promotions can work well when marketed through various mediums. Be creative and think outside of the box! Even online stores can use physical signages to be visible.
Advertise as much as you can and make sure that your sales campaigns can let people know about what you offer.
Align your sales promotion with your company goals
Setting measurable goals is essential in any sales activity. Your sales team should be able to determine and understand what your business wants to accomplish and how it is aligned with your company goals.
Are you going to focus on trying out a new marketing strategy? Are you going for lead generation? Are you after repeat business?
Knowing your goals can help you track your success and help you identify what promotional campaigns work and what does not.
Offer true product and price value
Your sales promotion might be effective. However, gaining loyalty from your customers is another challenge on the other side of the coin.
Thus, your product should walk the talk! So if you promote a product that you say would make their hair shinier and smoother after a month of using it, then it should do so! Not only will it strengthen and justify your product price, but you will also gain brand credibility which fosters loyalty and customer satisfaction!
Another tip that you should keep in mind is to stay true to your price value. To promote sales, it is crucial that your consumers really get the value behind your sales promotion. Otherwise, it will not be as effective.
It is also important that whenever you give out discounts, your business can afford it. If not, your sales promotion can incur losses more than sales.
Review your progress
Keeping track of your sales promotion success can help you adapt to customer demands. Using customer insights, you can quickly analyze whether your sales promotion ideas have been worth it for your business. Remember that sales promotions are not only done to boost sales but to make an impact in the long run.
This can also act as a baseline before you spew out new sales promotion ideas for the next run. Analyze how your sales process has improved and how your sales promotion attracted both new and existing audiences.
That way, the next time you do your sales promotions, you will have more ideas on pushing people down the sales pipeline!
Use digital tools to help you
Running tons of sales promotions can be very time-consuming, especially when you use a number of different platforms for marketing to reach a wider audience.
Thankfully, a lot of digital tools are now available in the market to help your business run your sales promotions without any difficulty.
Today, automation is key. Gone are the days when sales teams promote their products by manually sending out coupons one by one. It is simply inefficient and can create more losses than wins for the company.
Sales outreach platforms like Sloovi help address this problem.
By finding the right tools to help you with your sales, your sales promotion will be effective and maximize your sales team’s productivity without compromising your personalized efforts in connecting with your customers.
When you have the right tools for your business, you can bring in new clients while nurturing the existing ones. Imagine a seamlessly running company like a well-oiled machine without having any problems reaching out to your clients and carrying out all your sales promotions and other marketing strategies.
So, boost your marketing and sales outreach capabilities by finding the right digital platform for your business.
