Promotion is an essential part of any business strategy. It helps to increase brand awareness, attract new customers, and boost sales. There are many different types of promotions that can be used to achieve these goals. Joint promotions, repeat customer incentives, free trials, free shipping and returns, referral programs, coupons and vouchers, flash sales, loyalty programs, and mystery offers are just some of the ways businesses can use promotions to their advantage.
Joint promotions are a great way for companies with multiple brands or those in related industries to collaborate and increase their reach. For example, a company could offer a discount to customers who purchase from both brands. This type of promotion is especially effective for encouraging repeat business, as research shows that a 5% increase in customer retention leads to more than a 25% increase in profits.
Free trials are another great way to get potential customers to test out a product or service without any risk or commitment. Retailers can offer free samples at the point of purchase, while B2B or B2C services can offer a free trial or demonstration of their products or services. Free shipping and returns can also help remove one of the obstacles that cause people to abandon their cart.
Referral programs are an excellent way to take advantage of word-of-mouth conversations that are already taking place. A recent report by Kantar Media showed that 93% of respondents trust recommendations from friends and family more than advertising (only 38%). A referral program rewards people who send business your way.
Coupons and vouchers are a great way to generate revenue for products that might otherwise remain in your inventory. They create urgency for customers to take action and can be used in combination with other promotions such as flash sales or buy one get one free deals.
Flash sales are a great way to create buzz around your product or service. They can be organized monthly or annually and should be promoted through social media channels. Loyalty programs are also an effective way to motivate customers and show them that you value their business.
Cross-selling campaigns can help convert users who are at the decision stage of your sales funnel with a higher order value. Combining free shipping with limited-time offers is an effective way to attract potential customers throughout the year. Mystery offers also help spark curiosity with your sales campaigns.
Finally, clearance sales are a favorite among both online and offline retailers as they create scarcity and urgency while offering good bargain prices.