Consumer sales promotion programs can drive an immediate boost to the sales and revenue of a business. Be it a large business or a small to miz-size one, correctly implemented sales promotions are extremely advantageous for every type of business. If you are running a mid-size business and want to take it to a higher level, it is important to attract new customers while making sure that the existing ones stay loyal. This is what consumer sales promotion programs help you achieve. These programs are the set of strategies that businesses use to achieve short-term business goals, like boosting revenue and increasing brand awareness within a short period of time.
Boosting sales is generally the primary reason for running sales promotion programs. However, that is not the only reason. There are various benefits of running promos like sweepstakes, free gift with purchase, consumer loyalty programs, etc. The following are some most significant reasons why you must run a consumer sales promotion program for your mid-size business:
1. Generating New Leads
Running consumer sales promotions is one of the greatest ways to generate new leads and acquire new customers. By offering products under heavy discounts, free trials, buy one get one deals, etc, you can encourage your target audience to try your product. Studies suggest that consumers are more likely to buy a new product when they are getting it at a lower price.
By providing discounts or running free gift with purchase offers, you can encourage many potential buyers to try your product who would have never bought it at the original price. Consumers don’t like to spend on something they are not sure about and this is why offering good discounts on the first purchase is always a great idea.
2. Clearing Out Old Stock
It is not a desired situation, but it happens sometimes that you overstock certain items. Selling the overstocked products within your targeted time frame becomes challenging in such cases. However, consumer sales promotions are a great solution to this as well. You can offer these products at a 50% discount or under a Buy One Get One deal. Such offers trigger your customers to buy discounted items before the deal ends.
Though it might sound a bit less profitable to offer items under such heavy discounts, this is the best way to clear out old inventory and make space for new ones. This doesn’t only help you clear overstocked items but is also an effective way to make new potential customers buy your products.
3. Introducing New Products in the Market
Even the largest brands have to build a strategy for introducing new products in the market in order to ensure that it seems worth trying to the customers. As a mid-size business, the greatest way to introduce a newly launched product in the market is to align it with a consumer sales promotion strategy. Consumers are often afraid to spend on a product that they are not very sure about. This is where promotional strategies, such as free samples, sweepstakes contests, etc, can be very effective.
You can offer free samples of the newly launched product with your bestselling products, so that it reaches maximum target customers. Another idea is to run a sweepstakes contest to make the announcement of your new product exciting. For example, you can choose a winner randomly from the buyers of your new product and offer a free electronic item (like a TV, Mobile Phone, Laptop, etc) to the winner.
4. Boosting Loyalty in Current Customers
Your efforts should not end after customer acquisition because customer retention is even more important. Studies have shown that loyal customers spend much more than new buyers. Also, the cost of managing loyal customers is less than that of acquiring new ones. Running effective sales promotions and loyalty programs can help you boost loyalty among your existing customers and constantly encourage them to spend on your brand.
One way to do this is to offer discount coupons for future purchases. Every time your customer makes a purchase, give them a discount coupon that they can use in their next purchase. When customers have an opportunity to save on their purchases, they are very much likely to come back to your brand rather than switching to something else. Make sure that these discount coupons are valid only for a certain period of time so that you can make your customers come back more often.
5. Boost Sales and Revenue
All the above factors ultimately lead to a boost in the sales and revenue of your business. If you run interesting sales promotion programs, your customers will most likely talk about it with their friends and relatives. This is how word-of-mouth marketing works and more people become aware of your brand even without any extra effort made from your end.
With sales promotion programs, your customers are encouraged to spend more and it ultimately brings more sales to your business. Consumer sales promotions help in increasing brand awareness, boosting customer loyalty, and acquiring new customers, which further increases sales and revenue.
Run Effective Consumer Sales Promotions With RewardPort
If you are still trying to figure out the best sales promotion strategy for your mid-size business, you must connect with RewardPort. RewardPort is one of India’s top loyalty and reward solution providers. The team of experienced marketing professionals at RewardPort takes every detail of your business into account and plans sales promotions accordingly. If you want your consumer sales promotion strategy to be aligned with your business objectives, RewardPort can help you find the best solution.
Frequently Asked Questions: -
Consumer sales promotion is important to keep up with the competition and give your customers an additional reason to spend on your brand.
A consumer sales promotion is a strategy used by businesses to attract new customers, retain existing customers, encourage them to spend more and achieve other short-term business goals.
Some most significant benefits of running consumer promotion programs are:
- Attracting new customers
- Boosting loyalty in existing customers
- Clearing out old inventory
- Introducing new products in the market