A sales promotion marketing strategy should drive higher sales for your business. But while there are lots of advantages to sales promotion, you may come across some disadvantages too. Below are some of the pros and cons of a sales promotion.
- Ramp up sales by attracting new customers. One of the biggest benefits to a sales promotion is that it can help you gain new customers who might not usually buy from your business. Getting new customers, or people simply trying your product, can boost your marketing campaign through recommendations and word of mouth.
- Customers can try new products. Sales promotions give existing customers the opportunity to buy items they might not usually choose. Offering a discount can mean customers are taking a lower risk on buying an item they might avoid if it cost 100% of the cost.
- Help to clear out old stock. You can run a sales promotion to clear old stock or seasonal items and make space for new arrivals. This will help encourage customers to try your business while grabbing a bargain.
- Increase website visits. If you run an online business, a sales promotion could bring in visits and traffic to your site. While people may visit for the sales, they could click on other areas of the website and buy additional items.
- Seasonal sales: Make the most of major marketing calendar moments like Black Friday, Halloween and Christmas. If you offer a good sales promotion every year, customers will start to wait in anticipation for its arrival.
- Sales and offers can hinder profit margins. The total net revenue you can make from each sale does decrease when an item is on offer. However, if you get new customers who decide to stay, they may become regulars who shop outside of the sales.
- Devalue your brand. Offering sales and promotions too often could damage your brand quality perception. If the items are always on sale, some customers may question how good they are or how much they really cost to make.
- Customers may delay purchases, expecting sales. While anticipating sales can be good, it can also mean customers never buy full-priced items if they always wait for the sales promotions to arrive.
- Extra marketing material costs. You may need to pay to promote your sales. If this hasn’t been factored into the marketing budget, it could be an unexpected cost to the business.
- Could make it harder to sell at your standard price point. Once you’ve sold it at a sale price, you may struggle to sell items at the standard price. Maybe consider how much discount to offer, if it’s just a small percentage they may still be interested in paying full price if they miss the sale.
Small businesses can try various tactics to promote their sales and offers. Experiment using these sales promotion examples in your marketing strategies:
1. Buy one, get one free deals.
Entice customers using a buy one, get one free deal, where your customer buys an initial product and receives another for free. The promise of free products can help to inspire new and existing customers to make a purchase.
2. Free delivery for a limited period.
90% (9 in 10) customers have admitted to abandoning an online shopping basket due to delivery costs, so offering free delivery can help nudge your customers into purchasing. Added time pressure helps create a sense of urgency and, if they’re on the fence, no delivery fees could be the push they need to commit to the sale.
3. New customer discounts.
Offering discounts to new customers is an effective way to build your customer base and encourage those all-important first sales. Creating sales promotion Instagram Stories like ‘new customers unlock 15% off’ can help to attract potential buyers and persuade them to choose your product over other brands.
4. Flash sales.
Flash sales can be a great way to generate hype for old or out of season stock. They create a sense of urgency among your customer base and encourage them to buy now. You can advertise flash sales as banner ads or across your social media to drive website traffic.
5. Competitions and giveaways.
Customers enjoy interactive elements to their purchase. For example, a spin the wheel pop up can be used to generate leads while also allowing customers a chance to win products or services. Advertising competitions or giveaways can attract potential customers to try their luck.
6. Membership rewards program.
Sales promotions can be used to target existing customers as well as new ones. Rewarding loyal customers is a good way to secure repeat purchases. Invites to join a ‘club’ and receive money off or a stamp system with a free product after a certain number of purchases could encourage further sales.
7. Sitewide sale.
A sitewide sale is when there’s a set discount across most of your website. This can be a great way to clear stock between seasons to create warehouse space for new or rotated stock. Create eye-catching adverts to attract customers to shop your sale.
8. Free samples.
Free samples can help to grab the attention of potential customers. By offering a glimpse at what you can offer customers it may help to sway them into making a purchase. This is particularly popular with complex, or subscription-based products or services.
9. Mailing list sign up discounts.
Signing up for email newsletters is free for the customer, but getting a discount helps them to save money. This sales promotion idea hits two birds with one stone. Capture customers’ email data so you can send them marketing information if they opt in and persuade them to make a sale.
10. Clearance sales.
A clearance sale allows you to clear out excess inventory while selling it at a reduced price. A well-planned clearance sale promotion can increase website traffic and attract those customers looking for a bargain.
11. Limited time offers.
This sales promotion technique is focused on creating a sense of urgency, crafting the narrative that the customer will miss out if they don’t make the most of the deal. The time restriction acts as a purchase trigger. Be true to your end date though – extensions and repeated sales so close together could damage any loyalty customers have built in your brand.
12. Lifestyle discounts or deals.
Lifestyle discounts can help customers feel an affinity to your brand and may make them more likely to buy from you than competitors. For example, offering student or blue light discount will attract these specific consumers to choose your business to make the most of these deals.
13. Bundle offers.
Bundle offers work for you and your potential customers – they’re a win-win. Not only do they get a discount and a better rate from buying multiple items, but you also get to increase your sales. Bundle gifts can easily spark interest in your business.
14. Free gift with purchase.
Offering customers a free gift when they make a purchase with your business is a great incentive to persuade them to buy, and it can work on both existing and new customers. It’s also a good way to entice your customers to spend a bit more to qualify for the free gift.
15. Coupon or voucher code.
Providing discount codes to shop from you also encourages customers to buy into a good deal. Plus, they’re a good way to thank current customers and encourage them to continue shopping with you.
16. Donation to a charitable cause.
This sales promotion method allows you to use your potential sales for good. Inform your customers that for a period you’ll be donating a portion of your proceeds to a charity. This may persuade your customers to purchase from you and support the cause over competitors who aren’t offering the same.
If your customers have items in their bag and they haven’t checked out yet, there’s an opportunity to send them a promotion to try and secure the sale. Offering a discount on the items they’re interested in could entice them to come back later and complete the purchase.
18. Influencer affiliate links.
Partnering with an influencer allows you to leverage their audience as well as your own. As their followers tend to trust their judgement, having affiliate links could help to drive sales. Giving the influencer a discount code to share with their following will also add further incentive for customers to make a sale.
19. App-exclusive deals.
Offering app-exclusive deals encourages potential customers to download your app to benefit from them. They can then use your app when making purchases to unlock discounts.
This sales promotion method involves giving your existing customers a referral code to share with someone they know, to give them a discount code on a first purchase. The person who shares the code should also receive an incentive, to make them more likely to pass on the referral.
