8 Benefits of Sales Promotion
A successful promotion has the ability to nurture relationships with consumers through retention and engagement. Promotions can often shape the characteristics of brands, for example, McDonald’s Monopoly board is something truly unique to the brand, regularly bringing consumers together to discuss prizes and the probability of getting that all imporant Mayfair! This article will underpin the key benefits of sales promotion, and what it can create for your brand.
The word brand, was initially coined in farming as a way to differentiate cattle. A brand needs to be different to survive, a sales promotion can be an exemplary way to make a brand stand out from the crowd. It holds the potential to add unique value to a customer through a competition or unique experience, creating a reason to choose your product in a crowded market.
Again, take the McDonald’s Monopoly, for instance, consumers walking in and peeling off stickers with hope and eager anticipation that they may just have a winner. This often results in a free apple pie but creates that true brand experience which is different to Burget King or KFC.
Creates communication opportunity
Communication is an art, an art which creates formidable relationships with consumers that make your brand unique. A sales promotion allows brands to communicate on packaging and enables them to focus campaigns around an event.
Creates word of mouth
A brand is not the only one who can communicate a sales promotion! Word of mouth is one of the most positive forms of communication, especially if it is coming from a friend or colleague as they are usually a trusted and reliable source! Give your consumers a reason to be surprised and they will pass on the feeling of goodwill.
Creates a platform to cross-sell and upsell
If a promotion is based around giving money off a next order or something in a similar vein, then it can hold valuable opportunity to get sales around another product.
Creates a reason to buy
All the points above drive sales and make customers decision-making much simpler, If a brand is offering a similar product but something additional, then the consumer will often select that product and get more for their money!
Creates a focused marketing approach
A sales promotion often becomes an event for the firm and then allows a company to focus all its channels of marketing. A focused approach can force a brand to change the way they market themselves thus creating brand identity through those changes.
Creates greater revenue
Put simply, more sales from your promotion will create higher revenue. However, brands need to always calculate their costs and ensure they are aware of how many people may redeem the promotion and ensure that it is a profitable endeavor.
Creates a source of information
When customers attempt to redeem brands can often retrieve data such as email addresses and their home address. This creates the opportunity to target a customer through segmentation, you can then use direct mail or email campaigns to create personalised marketing.
Sales promotions are indeed beneficial for driving revenue, creating brand identity and allowing brands to acquire new customers! For more advice on sales promotion management visit the Mando’s promotional risk management page.