April 19, 2013

5 Tips For Successful Sales Promotions

Sales promotions have never been more important for the success of a business than they are in today's market. Small business owners who are finding it difficult to maintain a high level of sales in the slowed economy have to take advantage of every opportunity available to them. This is where sales promotions come in. Not only will a properly executed sales promotion keep existing customers purchasing products and services, but it will also help to obtain new customers, while at the same time allowing your business to remain competitive within the market place.

The following 5 tips will help you to implement a successful sales promotion:

#1 – Understand Your Target Market
The first step, and most important for any type of campaign, is to make sure you have a solid understanding of your target market. When planning a sales promotion your focus can be very narrow, to as broad of a scope as your product and services cater to. Deciding what your target market will be for your sales promotion will help you to achieve your sales goals and make your promotion a success.

#2 – Determine Your Sales Promotion Goals
When sales are slow, due to economical, seasonal or other reasons, a timely and well-crafted promotion can really help to increase sales. In order to craft a successful promotion you need to first figure out what your sales promotion goals are. Whether it's to target existing customers, attract new customers, entice competitors' customers, or just a way to offload seasonal stock, your goals will help to determine your overall promotion. Unfortunately it is rare that a single promotion will act as a catch-all to help you to obtain all these goals at once, so you must decide with each promotion what you are setting out to accomplish.

#3 – Develop Creative Sales Promotions
Once you have a good understating of your target market and your sales promotion goals, it is time to start developing your campaign. The more creative you are with your sales promotion, the more effective it can be when attempting to accomplish your sales goals. Unless the discount is quite substantial, posting a 'X' % Off sign in your store front window is the lowest common denominator when it comes to a creative sales promotion approach.

#4 – Using Discounts And Coupons
As mentioned, when it comes to using discounts and coupons, the more creative the promotion the better it will be received. The days of simply offering a nominal 10% to 20% off of products and services are long gone. Customers are looking for more value, not only for their money, but also with their discount. And with the popularity of discount sites like Groupon, many buyers who are typically not categorized as coupon users are now taking advantage of these discount offers. Some popular discounts and coupon promotions include: buy one get one free/half off, package deals, introductory offers, trial offers, and of course free items or services.

#5 – Including Limited Time Offers
One of the most successful ways to develop a sales promotion is to ensure that you include a specific start and end date. By creating a call to action that has a limited time offer, not only will you encourage customers to purchase your products or services, but you will also create an awareness that the sales promotion is such a great deal that it cannot be offered indefinitely.

There are many more factors involved in creating successful sales promotions, however the 5 tips found in this post will help you to get started.

Filed under Discounts, Information Articles, Slow Economy, Small Business by