Creating a sales promotion can be an excellent way to give a boost to sluggish sales or achieve new heights during a sales boom. Of course, this is only possible whenever you keep your customers at the front of your mind while creating the promotion. When you don’t, you run the risk of having your efforts fall flat, potentially wasting any marketing dollars you put behind the promotion. Luckily, designing sales promotions your customers will love can be a breeze when you focus on three key areas.
Sales Promotion Pricing
Inevitably, designing sales promotions comes down to a matter of price – specifically, how low you’re willing to go. In order to master this part of your promotion, it’s important to consider:
- Maximum discount
- Original price point
Let’s say you’re considering a 50 percent off deal and a 10 percent off deal. On the surface, you’d think customers would take the half-off deal any day of the week. But these numbers are deceiving.
This is where your price point comes in. Fifty percent off an item you sell for $100 is a $50 savings. On the other hand, 10 percent off an item you sell for $1,000 is a $100 savings. If you can find the sweet spot between your discount and your price, you’ll have a winner.
Sales Promotion Product
The product itself is another area of focus when designing sales promotions because it must appeal to your buyers to be successful. While you may have a warehouse full of outdated widgets you want to get rid of, your customers may not be interested in buying them at any price – not unless you’re willing to make drastic price cuts. The products your customers may be more interested in can include:
- Companion products to top sellers
- New products
- Top selling products
Sales Promotion Timing
Even if you have the product and the pricing portions figured out, your marketing efforts can die on the water if you miss the timing component. It’s time to think about when your customers are most willing to buy your products. Granted, you may wonder how slashing your prices when your customers are already planning to buy will help your bottom line.
Simply put, motivated buyers plus discounted prices equates to more dollars flowing in your door.
Perhaps the best example of this concept is Back to School time. Department stores already know parents are going to flock in to get their kids new clothes and shoes, yet they bombard the airwaves with promotions and special offers. Designing sales promotions in this way can help you:
- Combat competition in your industry
- Create a sense of urgency to make their purchases right now instead of waiting
- Entice customers into spending more in order to get the bargains
Ultimately, designing sales promotions your customers will love is a simple matter of understanding buyer psychology. Once you unlock the correct combination of product, pricing and timing, your business can reap the benefits.