Small business owners usually have a limited budget for marketing, which makes it important for them to use the most effective methods for maximizing conversions. There are several types of sales promotion examples that work well for small businesses. If you want to grow your business and reach more people in your target market, include these six effective sales promotion tactics when you plan your marketing strategy.
Offer Coupon Codes
You can choose how often you want to offer coupon codes. If you want to accomplish two tasks at once, post the codes only on your social media accounts. When you do this, you generate more sales and gain more followers. Your followers are more likely to share coupon codes, and the people who see their posts are more likely to follow you when you offer them a way to save money. According to a survey, nearly 60 percent of American adults use a coupon code when they make an online purchase. This statistic shows how important discount codes are for existing and potential customers.
Offer a Free Gift
When you offer something free to your customers, the tactic has a strong psychological effect on them. According to a marketing journal paper, researchers found that people saw more value in free items. This was because setting the price at zero decreased the cost and highlighted the value. You can offer a free gift with a minimum purchase to ensure that you make a sale. Also, you can offer a free item when people buy one or more full-priced items. Just be sure that the free gift is a quality item. If people know that you occasionally offer free high-quality gifts, they are more likely to watch for your future promotions.
Create a Sense of Urgency
Most people know that sales or coupons only last for a defined period. However, you can create a stronger sense of urgency if you add scarcity to the equation. For example, think about Black Friday sales. Merchants usually offer a specific quantity of items at a sale price. When they are all sold, the promotion is over regardless of time. To create scarcity, you can also use these other methods:
• Offer certain full-priced items seasonally or for a short time.
• Put low stock notifications by some sale items.
• Sell a few items that are limited or produced in small batches.
• Show real-time updates about how many people purchase or view an item.
Offer a Raffle Prize
This idea relates to the concept of giving away a free item. However, it creates a challenge since there is only one winner or a limited number of winners. Each participant has an equal chance of winning. There are two main ways to do this. You can tell customers that their order must exceed a minimum amount. Alternately, you can make the raffle exclusive to customers who buy products from a certain category or specially marked merchandise that you want to clear out of your inventory. If your raffle prize is connected to a special event at your store, you may need to obtain a license before you host a raffle.
Utilize Market Influence
If you use YouTube or watch videos frequently, you may notice that popular people who have masses of followers promote niche products. For example, there are makeup artists who test new products and show their followers how to use them. Find some YouTube channels that relate to your target market, and do some research to see which ones have plenty of active followers. Look at the comments, video views and follower numbers. You can contact one or more channel hosts to ask them to make videos about your products if you offer to give their followers an exclusive discount. The influence marketer posts a link to your site with a discount code and tells people to click it during the recording. If you want to sweeten the deal and shipping will not be too expensive for you, offer free shipping as well. Having an influential YouTube personality promote your products is a cost-effective way to reach a larger number of people in your target market.
Offer Customer Loyalty Rewards
If you ask your customers to provide an email address, you have a good opportunity to keep them engaged. You can offer exclusive deals for repeat customers through loyalty programs. For each purchase, members may accumulate points that give them a discount on a future purchase when the point balance reaches a certain number. Also, you can issue codes that are exclusive to customers for their future purchases. For example, a small business that sells shoes may issue a loyalty discount code to a customer after they make a purchase over $100. The code may give then $20 off the next order of $100 or more during the next six months. Although bringing in new customers should still be a top goal, make existing customers an equal priority. According to marketing research, over 65 percent of existing customers spend more than new customers.
Whether you want to promote a new product or grow your market share, an important issue to remember with these sales promotion examples is that you will handle more sensitive information if you have an online selling platform. When you give new or existing customers the opportunity to store payment information on your site, you put them and your business at risk. Although it is a necessary risk, you face liability issues if that information is compromised. To protect yourself and your customers, you'll want to have adequate cyber insurance with privacy protection provisions before you execute any of these types of sales promotion ideas.
Written by Hiscox Blog
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