Promotion is an essential part of any business strategy. It helps to complement the efforts made in personal selling and advertising, adding to the overall effectiveness of advocacy efforts. By offering free samples, discounts, and other incentives, companies can increase their chances of gaining new customers and encouraging repeat business. Email campaigns, free trials, referral programs, and cross-marketing are just some of the ways businesses can use sales promotions to their advantage. In this article, we'll explore the power of promotion and how it can help you increase your business.
What is Promotion?
Sales promotion is a marketing strategy in which a company uses short-term campaigns and incentives to build brand awareness and demand sales for a particular product or service. Examples of promotions include discounts, free samples, contests, and other incentives. Companies that provide promotional products increase their chances of gaining new customers by 83%.
How to Use Sales Promotions
When preparing your sales promotion, ask your sales team to provide you with customer information that can help you with the message and positioning of your promotion. Once you have a clear idea of who best fits your offer, you can create a sales promotion aimed at those who are most likely to make a purchase or become a qualified sales lead (SQL).
Email campaigns are an excellent way to communicate with potential customers. Research shows that 49% of people would like to receive weekly mass email campaigns from their favorite brands. By segmenting your list, you can ensure that you only send them the most relevant offers.
Free trials are a great way to get a potential customer to test your product or service without risk or commitment on their part. If you are a B2B or SaaS brand, the last obstacle to buying could be your customer's resistance to the challenge of changing providers. A referral program helps reward people who send business their way.
A recent report by Kantar Media showed that 93% of respondents trust recommendations from friends and family more than advertising (only 38%). So, having a referral program is a great way to take advantage of the word of mouth conversations that are already taking place.
Free shipping and returns can help remove one of the obstacles that cause people to abandon their cart. An example of a promotion is a sale where you receive two boxes of cereal for the price of one.
Think carefully about how to design your sales promotion to add tangible value to your customers. Cross-marketing is when one brand collaborates and teams up with another brand to promote the other's products across multiple marketing platforms.
In-store promotions such as “Enter to Win” contests offer shoppers an exciting incentive for visiting your store. Running sales promotions that don't offer a clear benefit to your customers will not only fail, but it can also damage your reputation.
Sales promotions take many different forms, but they all focus on persuading a target audience to become a customer of a company. Companies like Optamark Graphics help you get the best out of all promotional products to ensure you get the quality you want for the price you set. In the investment world, a promotion is an impetus for investors and potential investors to get excited about a stock, and create greater demand, which increases the value of the share.
Promotion is an essential part of any business strategy. By using sales promotions effectively, businesses can increase their chances of gaining new customers and encouraging repeat business. Email campaigns, free trials, referral programs, and cross-marketing are just some of the ways businesses can use sales promotions to their advantage.