11 Consumer Sales Promotion Techniques Every Business Can Use
With the rapidly increasing competition in the market, brands have become more conscious about attracting and retaining their potential customers. The marketing strategies of businesses are not just limited to advertising now, but they also use different sales promotion techniques to achieve their objectives. Studies have shown that most consumers try a new product only when they see an offer running on that. This is how powerful consumer promotions can be. Many consumers would have never tried a product if they didn’t get an offer on it. You might be missing out on many potential customers if you don’t run a sales promotion offer.
What is Consumer Sales Promotion?
Consumer sales promotions are the marketing strategies businesses use to boost their sales and achieve other short-term business goals in a limited time frame. The goal of a sales promotion program can be to increase sales, improve customer engagement, boost brand awareness, or anything that benefits a business in any manner. Almost every brand now uses sales promotion strategies to attract new customers and increase sales of their products. Some of the most effective consumer sales promotion techniques are listed below:
1. Free Samples
Offering free sample products especially works when your goal is to introduce a new product in the market or to promote a less popular product. It is a great way to make your potential customers try your products by eliminating the risk. Consumers are often afraid of spending their hard-earned money on something that they are not very sure about. This is why offering free samples or free trials is the best way to make them try a product that they might have never considered otherwise.
2. Early Bird Discounts
Early bird offers are the discounts that brands provide their customers on making a purchase or booking in advance. This sales promotion strategy is generally used by airlines, premium hotels, and other travel-based companies. These are very short-term offers under which a brand offers an additional discount on booking a flight or a hotel in advance.
Even e-commerce businesses can run early bird discount offers by providing additional discounts on specific purchases in the first few days of an offer. For example, if you are running a 20% discount offer for a month, you can provide a 30% discount to those customers who make a purchase (above a certain amount) within the first 5 days of the offer.
3. Gift Coupons
Offering gift discount coupons for future purchases is another sales promotion technique that doesn’t only help you boost sales, but is also effective in retaining customers. After your customer makes a purchase, you can send them a discount coupon code via email, text message, or you can even give it to them physically. The percentage of discounts may vary depending on the amount your customers spend. The more a customer spends now, the higher discount they will receive for their next purchase. Make sure that you keep these discount coupons’ validity short to make your customers come back more often.
4. Gift Products
Another great idea is to gift free products to your customers on making purchases above a certain amount. This strategy is most widely used by supermarkets where customers get free products on achieving the required spending threshold. The higher a customer spends, the more valuable free product they receive. For example, you can offer a product worth Rs. 100 free on purchases above Rs. 1,000, a product worth Rs. 500 free on purchases above Rs. 5,000, and so on. This sales promotion technique is not only effective in motivating customers to spend more but also allows you to make your customers try less popular products from your store.
5. Lucky Draws
This is a less popular, but highly effective sales promotion strategy to boost your sales or increase brand awareness in a short span of time. Launch a lucky draw offer and make as many customers as possible aware of it before the offer starting date. In such offers, a brand generally comes up with a minimum spend threshold that the customers need to achieve in order to enter the lucky draw contest. Out of all the participants, winners (generally three, five, or ten) are randomly selected and offered premium gifts.
For example, you can run a lucky draw contest with specific conditions, such as a minimum spend of Rs. 10,000, a short pre-specified offer period, a limited number of winners, and a prize for each winner. Every customer who spends above Rs. 10,000 within the offer period becomes eligible for the lucky draw. If running a lucky draw contest, make sure that you select winners randomly through a transparent process.
6. Happy Hour Sales
Happy hour sales are very often run by e-commerce businesses. These are flash sales valid only for a short duration, generally a few hours. Under a happy hour sale, you can offer specific products at heavy discounts for a short duration. When an offer is valid for a short period, it creates a sense of urgency among your customers. No customer wants to miss such a great deal and hence, they are motivated to make a purchase before the offer ends. When running happy hour sales, you must ensure that you offer really good discounts that can encourage your customers to make a quick decision without having a second thought in mind.
7. Cashback
Cashback-based sales promotions are one of the most traditional yet successful strategies to keep your customers coming back. When you offer your customers some cashback after every purchase, they feel like they are receiving something in return for their purchase. Getting something, even if it’s a little amount, is always better than getting nothing. So, if you are offering a small percentage of cashback on all the purchases your customers make, you are giving them a reason to prefer your brand over your competitors. You can even offer cashback in the form of store credits that they can use against future purchases.
8. Free Shipping & Returns
By offering free shipping and returns on your products, you can encourage your customers to buy your products at zero risk. If they don’t like it, they can always return it (though within the pre-specified time period only). However, only a few consumers return a product after purchasing it. By offering free returns, you can eliminate your customers’ fear of wasting their money on a new product.
9. BOGO Offers
Under a Buy One Get One deal, you can either offer one product for free with another product or provide one product at a discounted price with another item. When customers see a BOGO deal running, they are tempted to avail of its benefit as they don’t want to miss out on the opportunity to get two products at the price of one. You can use a BOGO deal to boost sales for a specific product or to clear out old inventory. Also, make sure to keep the offer validity short in order to create a FOMO among your customers.
10. Sweepstakes
Sweepstakes are just a different type of lucky draw contest where the winner is selected completely at random. Generally, there is no minimum spending requirement to enter a sweepstakes contest. All the customers who have made a purchase during the specified period, or simply all the registered users on an e-commerce website are eligible to participate. Any customer can be selected at random and provided with a pre-specified gift.
11. Loyalty Points
Almost every business is now having a loyalty program under which they offer a fixed percentage of loyalty points to their customers after every purchase. Customers can later redeem these loyalty points against several options available, such as discount coupons for future purchases, gift vouchers for other brands, and other products. Offering continuous loyalty points is an effective sales promotion strategy to boost brand loyalty and encourage repeat purchases in your business.
Choose RewardPort As Your Sales Promotion Partner
RewardPort, being one of the top sales promotion companies in India, can execute a consumer promotion program exclusively for your business taking every small detail into consideration. The team of marketing experts at RewardPort analyzes your business requirements carefully and comes up with a sales promotion plan that works well for your brand. With plenty of reward and redemption options, RewardPort becomes a great option to consider when looking for sales promotion companies.
Frequently Asked Questions: -
Consumer promotion is important for businesses to attract new customers and make them buy products at discounted prices. Studies suggest that many consumers like to try new products only when offered at discounts and not otherwise.
To measure the effectiveness of your consumer promotion offers, you can use several metrics, such as the profits before and after promotions, increase in sales after promotions, increase in the rate of repeat purchases, etc.
Social Media has become a powerful tool used for sales promotions by businesses. Social media platforms can be very effectively used for boosting brand awareness. The social media contests run by brands are often much more successful than other types of sales promotions.
How to Counter Product Return E-Commerce with Consumer Sales Promotion?
Product returns have been a significant challenge for online retail businesses. Every year about 20-30% of the products sold online face returns. That is not only a loss in revenue but also doubles up the costs for the sellers, not to mention damage to the reputation.
Handling product returns require a robust after-sale process, something which, small e-commerce retailer would find challenging to build. You can, however, work to reduce product returns and after-sale issues.
Addressing avoidable challenges like sizing, multiple purchases, and setting correct expectations are a few things every online retailer should consider. However, after this, you can also have specific consumer promotion campaigns to reduce the chances of returns even further.
The first thing to do before you start investing in consumer sales promotion campaigns is to estimate a budget. That will depend on how much product returns hurt your business overall. This is the maximum amount you should set aside for sales promotion to minimise returns.
How Product Returns Hurt More Than Your Reputation?
Not only do product returns result in lost revenue, but they also harm sellers’ reputations and customer loyalty. However, by implementing effective consumer sales promotion strategies, you can counter product returns and improve customer satisfaction.
The following expenses must be considered by a retailer when a product is returned:
- Labour: There will be labour costs associated with every step of the returns process, such as customer service, accounting reconciliations, shipping, warehousing, restocking, and reselling.
- Reselling: It may be necessary to repair or refurbish returned items before repackaging and reselling them if they are to be resold. The price of doing so may be far more than the selling price.
- Damaged Items: A product may need to be destroyed if it is returned in a damaged or unsaleable state, which means the retailer bears both the cost of the original purchase and the return.
Transportation: Costs associated with receiving returned items from a consumer can be high and may include paying for shipping, packaging, and labelling.
Consumer Promotion Strategies to Counter Returns
Now let us discuss how to counter product returns in e-commerce with consumer sales promotion:
1. Free Gifts with Purchase
Offering gifts with purchase is an effective way to incentivize customers to make a purchase and reduce the likelihood of returns. You can offer free products, samples, or other incentives to customers who make a minimum purchase amount.
2. Bundle Deals
Offering bundle deals is an effective way to increase sales and reduce the likelihood of returns. You can offer discounts on bundled products or services to incentivize customers to make larger purchases. Bundle deals can also help to increase the perceived value of your products or services.
3. Limited-Time Offers
Creating a sense of urgency can encourage customers to make a purchase and reduce the likelihood of returns. Offering limited-time promotions, such as flash sales or daily deals, can create a sense of urgency and motivate customers to make a purchase.
4. Discounts and Coupons
Offering discounts and coupons can incentivize customers to make a purchase and reduce the likelihood of returns. You can offer discounts on specific products or entire orders, and advertise these promotions through various channels, including email, social media, or your website. Coupons can also be offered to new customers as an incentive to try your products or services.
5. Free Shipping
One of the most common reasons for product returns is high shipping costs. By offering free shipping, you can incentivize customers to make a purchase and reduce the likelihood of returns. You can also offer free shipping for a minimum purchase amount to encourage customers to increase their cart value.
6. Loyalty Programs
Loyalty programs are designed to incentivize customers to make repeat purchases and reduce the likelihood of returns. You can offer exclusive discounts, reward points, or early access to new products or services to customers who join your loyalty program. Loyalty programs can also help to build long-term relationships with customers and improve customer retention.
7. Personalised Promotions
Personalised promotions are tailored to the individual needs and interests of your customers. By using data such as past purchases, browsing behaviour, or demographic information, you can offer promotions that are relevant and personalized to each customer. Personalised promotions can increase customer satisfaction and reduce the likelihood of returns.
8. Referral Programs
Referral programs are an effective way to incentivize existing customers to refer new customers to your business. You can offer incentives such as discounts, credits, or free products to customers who refer others to your business. Referral programs can help to increase customer acquisition and reduce the likelihood of returns.
9. Personalised Customer Support
Providing personalised customer support can help to reduce the likelihood of returns. By offering personalised support, you can address any concerns or issues that customers may have and improve their overall experience with your business. Personalised support can also help to build long-term relationships with customers and improve customer retention.
Run Effective Consumer Promotion Programs
Product returns can be a significant challenge for e-commerce businesses. However, with RewardPort’s effective consumer sales promotion strategies, you can counter product returns and improve customer satisfaction. By offering free shipping, discounts, gifts with purchase, loyalty programs, personalized promotions, limited-time offers, referral programs, bundle deals, and personalized customer support, you can incentivize customers to make a purchase and reduce the likelihood of returns.
Frequently Asked Questions: -
Consumer promotion is a marketing tactic intended to persuade customers to make larger purchases. Consumer sales promotion has two purposes: to increase brand recognition in the marketplace and foster brand loyalty among current customers, which in turn helps to increase sales and conversions.
Consumer promotions are short-term strategies created to fulfil short-term goals. Consumer sales promotion strategies can help you encourage purchases, boost in-store traffic, or just create excitement for your products or brand.
Companies can utilize a variety of sales promotion strategies, such as coupons, rebates, free samples, contests, prizes, loyalty plans, volume discounts, and point-of-purchase displays.
Most Common Mistakes People Make with Consumer Promotions
Consumer promotions are a popular marketing strategy used by businesses to drive sales, increase brand awareness, and create customer loyalty. However, despite the potential benefits, these promotions can also lead to several mistakes that can negatively impact your brand and bottom line.
Consumer promotions are marketing strategies aimed at attracting and retaining customers by offering incentives such as discounts, freebies, or bonuses. They are a crucial aspect of modern marketing and are used by companies to increase sales, build brand awareness, and enhance customer loyalty. In this blog, we will explore the different types of consumer promotions and how they can benefit your business.
1. Discounts and Coupons
One of the most popular consumer promotions are offering discounts on products or services. This can be achieved using coupons or special codes that customers can redeem for a specific discount on their purchases. This type of promotion is particularly effective for driving sales during slow periods or for introducing new products.
2. Free Samples
Another effective consumer promotion is providing free samples of products. This allows customers to try the product before they buy, and it can also serve to generate positive word-of-mouth advertising.
3. Buy-One-Get-One (BOGO) Offers
BOGO offers are a great way to encourage customers to purchase more than one item. This type of promotion works by offering customers a free item for every item they purchase.
4. Limited-Time Offers
Creating a sense of urgency can be a powerful motivator for customers to act. Limited-time offers, such as flash sales or time-bound discounts, can drive sales by encouraging customers to purchase before the offer expires.
5. Loyalty Programs
Loyalty programs are designed to reward customers for their repeated business. This can be in the form of points that can be redeemed for discounts or special offers, or it can be a tiered system that provides increasingly better rewards as customers make more purchases.
Consumer promotions are an effective way for businesses to increase sales, build brand awareness, and enhance customer loyalty. By offering a variety of promotions, businesses can reach a wider audience and create a more compelling customer experience. Whether you’re a small business or a large corporation, incorporating consumer promotions into your marketing strategy can lead to greater success and increased customer satisfaction.
In this blog, we will explore the most common mistakes people make with consumer promotions and how to avoid them.
1. Overcomplicating the Offer
A promotion that is too complicated or confusing can result in low participation and a negative customer experience. Make sure the offer is simple, easy to understand, and straightforward. Avoid using complex terms or requiring customers to jump through hoops to redeem the offer.
2. Failing to Set Clear Goals
Without clear goals, it is difficult to measure the success of your promotion and determine whether it is worth repeating in the future. Establish specific objectives such as increasing sales, boosting brand awareness, or driving traffic to your website. This will help you determine whether the promotion is achieving its intended purpose and make necessary adjustments if it is not.
3. Overshooting the Budget
Running a consumer promotion requires a budget, and a lack of resources can limit the potential impact of the promotion. Make sure you have allocated enough funds to support the promotion and run it effectively. This includes advertising costs, printing and distribution of promotional materials, and reward costs.
4. Poor Timing
Timing is critical when it comes to consumer promotions. Running a promotion during a slow period, or when your target audience is not actively engaged, can result in low participation and a lack of impact. Consider factors such as seasonality, holidays, and events when selecting the best time to run your promotion.
5. Neglecting Customer Service
Poor customer service can quickly ruin the positive impact of a promotion. Ensure that your customer service team is prepared to handle an increase in inquiries and is trained to assist customers with any questions or concerns related to the promotion.
6. Failing to Promote the Offer
The success of a promotion largely depends on how well it is promoted. Make sure to advertise the promotion through various channels such as email, social media, and in-store displays. This will help reach your target audience and increase participation in the promotion.
7. Lagging Follow-Up
Once the promotion is over, it’s important to follow up with customers to understand their experience and gather feedback. This will help you make necessary adjustments for future promotions and build stronger relationships with your customers.
Conclusion
Consumer promotions can be a powerful tool for businesses looking to drive sales and increase brand awareness. By avoiding the common mistakes outlined in this blog, you can run successful and effective promotions that provide measurable results and deliver positive customer experiences.
Frequently Asked Questions: -
Consumer Promotion in a business is important to drive more sales, stimulate a purchase, encourage loyalty among existing customers, motivating customers to spend more & more on your products, and attracting new customers within a short time.
A consumer reward program, also referred to as a loyalty program, can be defined to attract more customers and encourage the existing customers to remain loyal to a brand. Consumers are rewarded in the form of loyalty points, cashback, discount, or anything else, whenever they make a purchase from a certain brand and earn rewards that can be used to save some money in future purchases.
The four major types of consumer promotions are listed below:
- Social Media Contests: Come up with creative contests on social media platforms for brand awareness.
- Free Samples: Offer free samples or trials to gain target customers.
- Coupons/Vouchers: Offer coupon codes or vouchers through other popular platforms, such as G-Pay, Paytm, Amazon, Flipkart, etc.
- Consumer Reward Programs: Come up with loyalty programs to encourage repeat purchases.