Having a sale is not as easy as gathering an inventory, assigning a discount, attracting new customers and ringing up the cash register. It involves high-level strategy and even psychology to do it properly. Before announcing a sale, small business owners should consider the type of promotion to offer, the timing and reason for doing it. Will there be a discount or should it be a free gift with purchase? Will it be a one-time thing or a regular one? Is the purpose to move out inventory, introduce new product or attract new customers?
Here are some sales promotion ideas that small businesses may look into:
Flash Sale – The oldest trick in sales in to offer the chance to save money at a limited time. At present, flash sales have taken on a new life online. There are websites created for the sole purpose of offering time-sensitive deals. A flash sale can benefit a small business in many ways. It gets people talking and attracts new leads. The sales cycle is short and this makes people buy quickly. Flash sales bring in an infusion of cash in a short period of time. A study found out that a three-hour sale has the best transaction-to-click rates. Promoted by email, flash sales reward email subscribers making them stay on the list for future offers. To make sure that they see the email, start promoting the flash sale days ahead and consider offering email subscribers early access and more frequent updates. Infusionsoft can help build automated series of emails and segment recipients so they don’t receive unneeded mails.
Buy one, take one – Everyone is attracted by “free”. Consumers believe that free items are more valuable than discounts so it’s wise to add products and services that will bring in new customers. For example, a spa can offer a free pedicure with a client’s first body scrub. A small amount of money may be lost on the free pedicure but it will gain a client who may return for several sessions. When it comes to retailers, a buy one-take one offer can help him move out unwanted inventory.
Coupon or Discount – Offering coupons or discount with a purchase works for both the store and the customer. The customer saves money while the business gets the chance to make more money as long as the discount allows a profit margin. There’s even a chance the discount won’t be used anyway. A lot of gift cards and left unused.
Tripwire – A tripwire is an offer to those who have signified interest. It is an irresistible, highly-affordable offer that converts prospects to buyers. Tripwires are usually sold at cost and sometimes even at a loss. You don’t make money out of selling tripwires, you acquire customers. It can be a book or piece of content, an online course, a product sample or any product that represents what your company is offering
Recurring Sale – Having a recurring sale like payday weekends, anniversary sale, etc. programs the customer to act on a deal whenever they happen. For businesses, it provides consistency thereby allowing them to prepare their programs on a schedule and accurately compare sales performance.