January 9, 2018 Jaclyn Bickerton
Consumer promotions are tactics or techniques designed to help a business find new customers or reward current customers. The most common consumer promotions are aimed at enhancing the value of your product, either by reducing the cost or adding more benefit to the regular price. However, consumer promotions can be utilized to achieve various other objectives as well, and different promotions work better for different purposes. In this blog, we’ll discuss various methods of consumer sales promotions.
Sales / Promotional Pricing
Introducing and promoting a sale price can encourage multiple purchases of a product within a set timeframe. Sales or promotional pricing can be a great way to move product and can be planned and advertised in advance and on location during the offer period.
Widely used by marketers worldwide, coupons offer instantly redeemable savings on certain products. Coupons can be delivered to the consumer in various formats such as print out, digital, coupon codes, product display, cross product, and more. Coupons are useful for 1) introducing a new product; 2) promoting the sales of an existing product; 3) selling a large quantity of product; 4) encouraging consumers to switch brands; 5) encouraging repeat sales. However, do keep in mind that the coupon is only as good as the offer; the offer must provide value to the consumer. Don’t miss our coupon marketing white paper.
Contests & Sweepstakes
Contests and sweepstakes help generate buzz and excitement around your brand. Contests award value based on skill, while sweepstakes award value based on luck alone. Contests and sweepstakes do not require a purchase to enter and give your customers or potential customers an opportunity to win something. Contests and sweepstakes can also include a survey to gather more information for future consumer promotions. Learn how to develop a strategy for a contest or sweepstakes here.
Sampling / Product Demonstrations
Sampling offers give consumers a chance to try out a product for free in order to help generate interest in the product. Though this can be quite expensive, free samples help consumers verify product quality without the fear of buyer’s remorse. Product Demonstrations allow consumers to see exactly how a product works prior to purchasing it.
Rebates are money-back offers made to customers after a purchase has been made. Generally, rebates are used for higher price products and must be mailed to the product’s manufacturer with proof of purchase prior to the consumer receiving any money back. Customers benefit from a lower price (even though they may have to wait weeks to get the money back), and marketers win because some customers will not take action on a rebate. Another benefit of rebates is that companies can also request personal information or other data from the customer.
Premiums are a type of consumer promotion that provide incentive to purchase by offering an “extra” related product for no additional cost. Premiums can be included in the outer part of the packaging or can take the form of a prize inside of the product packaging.
A technique that offers customers a reward for frequent purchasing (or other activity). Loyalty programs encourage brand loyalty and provide added value to repeat customers.
Trade-in promotions give consumers a discount or a price break on a purchase if they exchange something they already own, such as an older model or item that the new product will replace.
Consumer Promotions are proven to be effective way to market your products and services. Sales promotions should be well-planned, seasonally relevant, and focus on themes surrounding your product or service that will entice your prospects and provide value to your customers.