You want to bring more customers to your business due to various reasons. Maybe you are launching a new product into the market, you want to be ahead of your competitors, or you just want to boost your revenue. One of the methods that you are probably planning to use is the sales promotions.
This is a technique that involves enticing potential customers into buying your products or uses your services. Some of the sales promotion practices include discounts, giveaways, and offers. However, are sales promotions the best option for you? Before deciding to invest your money in this method, read on to unravel the merits and some of the demerits of sales promotions.
Differentiates you from others
Let’s take this scenario. Your five competitors in the locality are selling the same goods as you and at the same price or even lower. Why should a customer come to your business and not theirs? One of the simplest ways of taking over the market is through sales promotion.
Sales promotions will make your business stand out from the crowd as they give potential customers a strong reason to visit your store instead of others. The simple rationale here is that they will come to you believing that they will be able to save some good money.
A sales promotion campaign has the potential of increasing your overall sales. Whenever customers realize that various products are being sold at a discounted price, they rarely hesitate to purchase them. They also tend to inform other people about the offers, and with time, your shop flocks with more customers.
What most people fail to realize is that the sales don’t just affect the specific products that have been discounted. As those customers that have been attracted by the discount shop around, they see other products that catch their eyes and purchase them as well.
Increase brand awareness
If you have just released some new products on the market or began a new business, the quickest way of making customers aware of what you have to offer is through sales promotions as they attract many people within a short time. This means that the message about your brand will spread quickly with little effort.
Sales promotions can help you build quite a good reputation in the society. This happens when you offer some discounts to specific groups of people. For instance, you can provide discounts for the elderly, physically handicapped, or any other group that comprises of marginalized individuals.
Although it might look like a minor move, it will make people trust your brand and view it from a positive angle. Some customers will even visit your store just because they saw you do something helpful.
Clear the stock
Sales promotion is the most efficient method that can help you create more space in your store. They come in handy when you want to get rid of some items, especially when you are not interested in dealing with that line of products. Buyers will come in droves and purchase as many items as possible if you offer discounts, and in doing so, you will have enough space for your new stock.
Bond with customers
Some of the methods of sales promotions require you get out in the field and interact with your customers. The conversations you have with the clients may not just end at the purchase of the products. You can ponder asking various questions about your business, including their opinion on the service delivery or the quality of your products. This way, you can have a list of what people like or dislike about your business, and use it to find ways to improve your brand.
Disadvantages of Sales Promotions
Although sales promotions can help you achieve short and long-term goals, they also come with some drawbacks. Here are some downsides of using this method:
-Short-term benefits: In most cases, the gains realized by sales promotions usually last for a short period. After that, the situation may go back to normal. This means that as a business, you need to utilize the period that the promotion runs appropriately.
-Damage to the brand image: Running many sales promotions within a short period can be detrimental to your brand image. Consumers can begin to assume that you offer substandard goods and that’s why you are desperate to sell them.
-A sales promotion campaign can be an expensive affair
Before using sales promotions to boost your business, first, analyze whether they will add value to it. Then, assess your enterprise's goals and determine whether they will help you meet them.