When Customers Ask for a Promo, consider this:
Customers’ love for promotions is indisputable.
But, as you know, promotions can be costly for smaller brands.
And besides, promotions should never become a default strategy for more sales unless you can actually afford it and have a robust marketing program to keep those buyers.
We still have marketers who make the mistake of focusing on the amount generated from sales instead of looking at the bigger picture: the overall profits.
Smart marketers pay attention to their gross profit margins first, before activating any discounting strategies.
When customers ask for a promotion, do the following if you don't want to hurt your profit margins.
1. Offer smart discounts
I know cutting down prices is not a good feeling to have. But sometimes being generous to a customer who has spent above the given amount shouldn’t hurt that much.
Reducing the price when a customer purchases more products is better than having a warehouse full of stock that is collecting dust or not selling.
Adidas is good at doing this:
2. Offer BOGO Promos
There are many variations of the BOGO concept, it doesn’t always have to be: buy one get one free. Sometimes the rule can be 3,4,5 and get one free. You can even say buy one and get one at a half-price.
3. Buy X, and get a free gift
There's something that makes customers happy than seeing the word FREE.
So, instead of giving a free same product that the customer would have bought, you can consider giving away something of a lower value and marketing it as a free gift.
But the secret sauce in this tactic is to make the free gift attractive, and something that goes along with the product that your customers would have bought.
Take a leaf out of Apple’s marketing playbook:
4. Go for Loyalty Points
Offering loyalty points has proven to be an effective way to drive customer retention.
For every $50 that a customer spends you can award a $1 loyalty point. The more a customer spends, the more points they earn.
5. Who doesn’t love Free Shipping?
Free shipping can really influence customers’ buying decisions.
78% of US Amazon Prime Customers signed up for the Amazon Prime Loyalty Program because of free shipping.
Now, 60% of eCommerce marketers offer the free shipping option and they say it is by far their most successful marketing tool. Some even predict that all shipping will be free in the near future.
This is just a snippet, for a full ungrated article click here:
https://www.invespcro.com/blog/how-to-run-promotions-without-deep-discounts/
Any thoughts on this folks?
