Improve Your Sales with these 10 Easy Promotion Techniques
Getting customers to purchase your products without any incentives is GREAT! But not all of us can do that all the time. Sometimes, people need a push. That’s where sales promotions come in. They provide both existing and potential customers with reasons and incentives to purchase from your company. There are various types of advertisements, from discounts to loyalty schemes. Using the right kind of tactic is very important to increase sales. That’s what we will be discussing here. So, let’s dive right in.
Discounts are arguably the most common ways of promoting sales in business. This one is self-explanatory since I’m sure all of us come across this every day. Offering concessions in the price for the services and products you sell attracts many people. I mean, who doesn’t like a good bargain? Two main ways to go about this is to market it as a percentage discount (30% OFF on selected items) or a price discount (AED 100 OFF on everything). The type used depends on what you think would attract more customers. This one is available for both consumers as well as traders. While it is a tried and tested method to increase sales, be cautious not to use it very frequently since customers will think of it more as a norm. This could make them hesitant to purchase on non-sale days.
Flash sales are essentially just discounts that last for a shorter period, to evoke a sense of urgency for the customers to purchase. It is mostly implemented when there is an excessive stock that needs to be cleared. A study by Monetate indicates that 50% of the purchases occur within the 1st hour of the flash sale. The study also found that email marketing was a better method to boost flash sale campaigns compared to social media. Consumers are more likely to open a mail indicating a flash sale than a regular one. It also yielded more conversions — the shorter the time, the better.
Coupons are yet another way to avail discounted offers. It helps create a sense of exclusivity for customers. It prompts customers to purchase items since they have a discount already in hand, even if they are new to your company. Think about spas that give coupons; on a very tiring day, you will more likely purchase the services of that spa, even if you haven’t been there before. The same goes with fast-food chains like McDonald’s, in a mall food court filled with lots of options, you are more likely to purchase from the place you have a coupon for. It acts as an incentive for the customers to prioritize you as opposed to your competitors.
Now, this is a sneaky way to increase sales. A study by Walker Sands demonstrated that consumers were 80% more likely to purchase products online when provided free shipping. The study also indicated that customers were willing to spend more when there was free shipping in addition to free returns. As we can see, this creates a sense of security for the customers, which prompts them to invest more in your products and services. I mentioned this being sneaky since companies usually add to the shipping cost to the product price to reduce the loss. However, if you want to be completely transparent, then include free shipping when customers purchase products over a certain amount.
Everybody loves free stuff! Many companies use this to their advantage by gifting free things when a customer purchases from them. It is advised that both the items correlate in some way; for instance, giving a phone case free for buying a phone. The gifted item could also be more of a general article such as magnets or keychains. Ensure to mark up the purchased item accordingly so that you don’t pile up losses. Gifting is most commonly seen during festive seasons, as everybody associates gifts with celebration.
This is an excellent way to create awareness about your brand, products, and services. It has become an increasingly popular promotion technique, thanks to the internet. Social media and other web-based channels help reach a wide variety of people in a short period of time. Competitions create a more intense and exciting environment that attracts a lot of people. However, this is more of a loss leader since there is no guarantee that the people will buy from even after winning the prize. So do this sparingly, when you have an important message to get across, like perhaps the launch of a new collection.
While samples and trials are another type of loss leader, it is also extremely effective. Since they are done in larger quantities, samples are given in smaller amounts and trials for shorter periods. But they provide the potential customers an idea of what you are offering and are hence mostly successful. This type of promotion is done across various platforms, on the internet, in stores, with the daily paper, magazine, and even door to door.
These are several individual products or services sold together in one bundle. The customer’s advantage is that the bundle price of times is much cheaper than if they were to buy those items separately. Obviously, they are made up of similar items or complimentary items, such as shampoo and conditioner or makeup remover and lipstick. This is an excellent way to make the customers purchase multiple items, especially those in high supply. If they had come to the store with only the intention of buying a single product, now they will be leaving with two or more. This will be more appropriate for customer groups that prioritize a more effortless shopping experience rather than customised. For example, if there is a bundle offer for Pantene shampoo and conditioner, this offer will not work on individuals who purchase Pantene shampoo and Dove conditioner (to suit their hair care needs).
Refunds and rebates provide the customers with the partial or full amount that they paid. When presented a rebate, all the customers usually have to do is fill out a form to prove their purchase and send it to the company. They will then receive their money in their bank. While it is more common in the U.S., I think it should be adapted more commonly. Nothing can beat the feeling when you receive money (be it your own). Refunds help increase traffic to your website or store since people expect their money back. Plus, timing is vital in this process. The earlier the customer sends their information, the more chances they have of winning. More often than not, people usually forget to fill out the form.
Loyalty programmes are exclusive to customers who have already purchased from you. They are implemented to provide the customers with a sense of priority and value. The customers can be given points based on the number of purchases they made, how frequently they purchase from you, or the amount of money they spent (maybe even all 3). The points earned by the customers can then be redeemed in their next purchase. For instance, if a customer has 6,000 points in their card, they can get AED 60 cashback or a 30% discount on their purchase. The more they purchase from you, the more points they get, which acts as another reason to keep buying from you. Before you know it, they get comfortable with your brand and products making it harder for them to shift to another brand.
Marhabha is an online shopping store located in the UAE. Our main aim is to provide the customers with accessibility to authentic imported brands that are not readily available in the UAE. Additionally, we also produce products consisting predominantly of high-quality leather goods, sourced from India, under the brand name of Uxurious. Although we have the option of cash on delivery in the UAE, we provide a 25% discount when you purchase by card. We also offer free shipping across the UAE without any limit on the minimum amount spent. Visit our website to check out the products we offer.