How to Do Promos Right: Sales Promotion Tips and Tricks
Running sales and promotions is a great way to increase sales and profits. But, how how to do promos? What are the best practices?
In this comprehensive, step-by-step guide, you’ll learn everything you need to know how to do promos effectively and increase your bottom line.
What is a sales promotion?
A sales promotion is a marketing strategy employed by businesses to increase sales or encourage the use or trial of a product or service.
There are many types of sales promotions, but all have the same goal: to persuade a target audience that they will become customers of a company.
Promotional sales are a great way to increase your product’s visibility. You can promote them for free over social media channels, emails, or your website. Or, you can focus your paid advertising efforts on promotional campaigns such as Google Ads or LinkedIn Ads.
Sales promotions are most effective when they appeal to the needs, values, and emotions of your target audience. By using imagery, effective copy, and logic in your promotion, you can invite your target audience to purchase your products or services with an incentivizing offer.
Sales promotions are used to increase sales, boost customer satisfaction and heighten brand awareness. Successful companies know this and use sales promotions as part of their marketing strategy.
There are many different techniques you can use to promote your products or services. With a little creativity, you can find the perfect promotion for your business.
Sales promotions are a great way to drive traffic and sales for your business. By offering deals and discounts, you can attract new customers and encourage existing customers to buy more.
Sales promotions can also help you clear out old inventory or boost sales during slow periods.
There are many different types of sales promotions, so it’s important to choose the right one for your business.
There are many different types of discounts available, from percent-off deals to specials for teachers only. You can also find joint promotions with other businesses that complement your own. Whatever you’re looking for, you’re sure to find it here.
Offering sales promotions and discounts is a great way to attract new customers and retain existing ones. By providing attractive offers, you can increase your store’s traffic and revenue.
5 Ways to Run a Successful Promo
Promotions are a key part of marketing and maintaining your brand. By hosting promotions year-round, you can keep your brand fresh in customers’ minds and differentiate yourself from the competition.
But, as with anything, how you roll out your campaign is just as important as how you create it. If you put a little extra effort into your launch, it will pay huge dividends in the long run.
1. Engage Your Clients.
Find ways for your clients to help boost your promotion. They are your best salespeople.
For example, Uforia is running a promotion on Facebook and Instagram where followers can win a free Beyoncé Formation dance lesson for two people if they tag a #SweatBuddy in the image.
The goal of this marketing campaign is to both attract existing clients of Uforia who have already enjoyed the class and to hopefully draw in new clients who have not experienced it yet.
2. Messaging Matters.
Keep your message simple, so that anyone can easily understand what you’re saying. If others have trouble explaining your promotion to their friends, you may want to rework your wording.
If a promotion is too complicated, it will be difficult for customers to get excited about it and tell their friends.
It’s important to have strong messaging in your promotions, but graphics are just as important. Make sure that every promotion you put out has a strong image.
Your Facebook ad images should be eye-catching, consistent with your branding, and feature limited amounts of copy. Text-heavy ads can be unappealing to Facebook users and may be rejected by Facebook Ads Manager due to restrictions.
3. Mind the Fine Print.
The content of the message is what engages your customers, but you also need to protect yourself from any negative consequences.
Some sales are available for everyone, while others only benefit new subscribers. You don’t want to offer a discount that’s so great that current customers will cancel your membership or put it on hold for the sale.
Every promotion should have a “valid through” date to create a sense of urgency. The maximum run time for a promotion is usually one month.
As a small business owner, it’s your job to bring in new customers. But, once your promotion is over, how do you keep those customers coming back? You should create a plan to convert those clients into regulars.
4. Don’t Run Multiple Promos Simultaneously.
Running multiple promotions at once can confuse your message and lessen its impact.
Show your customers value instead of constantly offering discounts.
Running too many discounts could devalue your product and brand. This could result in customers only purchasing your items when there is a sale, instead of paying the regular price.
5. Review Your Campaign.
The best way to improve your marketing is by reviewing your campaigns after they’ve run to see what went well and what could have been done better.
Identify the people who helped spread your content and thank them for doing so. Consider how you can integrate them further in your next campaign.
How to Do Promos The Right Way
We have discussed the various types of sales promotions that you can offer. Let’s now discuss how to choose the right one for your business.
1. Set An Objective.
When considering a promotion, the first question you should ask yourself is, “What do I want to achieve?”
Before deciding on what type of promotion to offer, you should first identify your objectives. Do you want to increase foot traffic, boost your bottom line, or make room for new inventory? The answer will help you decide on the right promotion.
If, for instance, you want to entice people into your brick-and-mortar store, then offering a discount could be your best bet. However, if you’re looking to sell more products, then a BOGO or a multibuy promotion might do the trick.
There are times when you want to encourage a certain behavior from your customers.
When retailers like Nordstrom and Target want to encourage customers to choose in-store pickup, they offer discounts to shoppers who opt for those order fulfillment options.
2. Test, Test, Test.
Gary Nealon, President of RTA Cabinet Store, tested different types of promotions to see which worked best for his store.
In an audience survey, they discovered that customers valued low price guarantees more than free shipping because people expected that there would be a cost associated with shipping big products.
3. Set Restrictions.
Blanket promotions like “50% off store-wide” are a lot more enticing.
However, if you’re looking to protect your profit margins or avoid people from abusing your deals, you may want to set restrictions on things such as:
- Product-specific promotions: The promo is only valid for certain products or categories, like half-off all dresses.
- Spending thresholds: Customers need to spend a certain amount of money to qualify for the promotion, like free shipping if they spend $100 or more.
- Customer-specific promotions: The offer extends to certain shopper segments like new customers or VIP members.
If you want to make sure your promotion is successful, see if you can apply any of these restrictions. Just note that the more hoops people have to jump through, the less likely they are to make a purchase.
How to Improve the Performance of Your Sales Promotions
Here are some ways to promote your promotions.
1. Create a Sense of Urgency.
If you want customers to buy now, roll out a limited-time offer instead of promotions with no end date. This will create a sense of urgency and encourage people to take action.
This is one of the reasons why people like to shop for items during a flash sale. They know that the promotion won’t last long, so they want to get the item before it’s gone.
Studies show that 50% of purchases made during flash sales happen within the first hour.
A countdown is a great way to show customers how much time is left to purchase something.
2. Create a Theme.
Your offers will be more successful if you choose a theme and stick to it. This will make it easier for people to understand and remember your promotion.
One easy way to come up with a theme for your party is to piggyback on holidays. For example, you could have a promo for Mother’s Day, Memorial Day, or Fourth of July.
You can also take advantage of “unofficial” holidays and occasions.
On National Pound Cake Day, BirchboxMan ran a promotion to encourage people to gift a Birchbox subscription.
Can you think of a holiday that relates to your business? Even an unofficial one? Use it as a hook to draw people in with your promotion.
3. Tie in Your Loyalty Program.
If you’ve got a loyalty program, see if there’s a way to tie it in with your promotion. You could potentially drive member signups and sales if you play your cards right.
A welcome offer is a great way to entice new customers to join your loyalty program. For example, check out how gymboree.com offers a 20% off coupon code to customers who join their program.
If you want to encourage spending among your existing customers, why not run an exclusive promotion just for them? Make it into an event, and your loyal patrons will love the exclusivity. You could see a significant increase in sales as a result.
The retail giant, Nordstrom, is an expert at making a splash. Each year, they run an anniversary sale and make a big fuss about it.
The email campaign is launched and all of Nordstrom’s stores are decorated for the anniversary sale.
In 2021, Nordstrom celebrated its Anniversary Sale in creative new ways, launching experiences like live streams and “Glam Up Days.”
Another way to reward your most loyal customers is by implementing conditional promotions that are loyalty-specific.
Why not award extra loyalty points to shoppers who purchase specific items or spend a certain amount? Such promotions encourage spending while rewarding loyal customers at the same time.
4. Combine Promotions.
If you want to be extra generous (or if you need to get rid of your stock), try combining different promotions. Something like “Take an additional 20% off on discounted items” can really stand out to shoppers.
If you’re selling online, try combining discount or BOGO offers with free shipping. This could be a great way to increase customer satisfaction and loyalty.
5. Offer Targeted Promotions.
Try segmenting your customers into different groups based on age, sex, or spending patterns.
For instance, if you want to promote a specific product, you can create a segment of people who have bought that item before, then target them with a special promotion.
You could create a group for your VIPs or top spenders who you would like to reward with exclusive privileges. The company held a private sale for VIP customers and sent an email code to a selected group of customers.
6. Run Promos on a Solid Retail Platform.
Promotions are a fantastic way to boost sales, but you need to make sure you’re tracking your stock and your profits. Choose a POS system that lets you track your sales and your inventory, so you can stay on top of your numbers.
You need a good system to run promotions effectively – a retail management system that is easy to use. The retail platform you choose should make it easy to apply discounts and track your stock levels and sales effortlessly on the backend. This will help ensure that your promotions are executed smoothly and efficiently.
7. Offer Flexible Payment Options.
Even if your promotional deals are incredible, some of your clients may still be hesitant to buy expensive products. In these situations, look for ways to make your store more budget-friendly for them.
Offering a flexible payment option, such as layaway, can help make budgeting for shopping more manageable for customers. With this method, you collect a downpayment from a customer for an item and hold it until the item is paid off at a later date. This makes it easy for customers to purchase expensive items without having to pay all at once.
If you’re not a fan of layaway, consider using a buy-now-pay-later solution like Afterpay. With Afterpay, you can receive payment for purchased items upfront while letting your customers pay in four installments spread out over two weeks.
It charges no interest, and when customers pay their bills in full, there are no additional fees.
Providing customers with the option of paying in installments with no extra cost to them is a fantastic way to boost sales. Solutions such as AfterPay have been shown to increase sales by 20%. This encourages customers to buy more, which benefits your business.
The best part is that you get paid upfront so you have immediate access to the funds.
Why Your Promotions Have a Good Chance of Success
Tracking algorithm changes can be a bit tricky.
Despite the vast amount of research that has gone into digital and social marketing, the role that AI and machine learning play in ad placement, reach, and campaign success is still not fully understood.
We have a few suggestions for you to consider when planning your promotions.
Promotions Are All About Reach
No matter what the goal of your paid media efforts is (whether it’s finding ads that result in more conversions or scaling to achieve more results), all spending on paid media should be geared towards generating those desired outcomes.
When it comes to creating successful promotions on Instagram, one key element is to use a post that your followers enjoyed. This will help ensure that your promotion reaches as many people as possible.
This means using content that has received a lot of likes, comments, and shares.
Ad Revenue and Engagement Fuel Instagram
Instagram’s primary focus is creating products that users will want to constantly use. By keeping users engaged, they can generate more ad revenue.
When a user shows interest, it increases the chances of that user sharing that content with his or her followers.
Your posts, stories, and highlights that have been successful in the past are more likely to be successful with a wider audience. While we don’t know all of the details about their algorithms, this logic makes sense.
Sales promotions are a great way to increase your reach and engagement. By following some simple tips and tricks on how to do promos, you can make sure that your sales promotions are more effective than ever. So next time you’re planning a promotion, keep these things in mind and see how much better it goes!