How to Maximize Sales Using Promotions and Special Offers
Customers love feeling like they are receiving a great deal on their purchases, which is why special offers and promotions are effective for producing real conversions, especially during the holidays.
According to Ecwid’s quarterly data, 14 percent of merchants utilize discounts, while 16 percent used promotions for the holidays during the 4th quarter of 2014. By only offering incentives during the holidays, you’re limiting the amount of customers you attract and maintain.
Using promotions and special offers are proven to increase sales with the University of Chicago reporting a 24 percent boost in performance.
Whether your goal is to attract new customers, reward loyal customers, or clear inventory, rewarding your customers with special deals will generate the results you want. However, keep in mind that the incentives you offer must not undermine the value of your products.
Attract New Customers
Attracting new customers and generating leads are simplified when using special incentives to encourage customer action.
According to a study by Marketing Insights, 71 percent of customers made a decision purely based on the results of an incentive, while a study by Rice University evaluated purchasing decisions and found incentives to be directly successful for attracting customers.
Customers are naturally attracted to great deals, especially in the current state of our economy. Everyone wants to save a dollar or get more bang for their buck, which appeals to customers to get one foot in the door.
Then, the details of the incentive will make the customer feel valued to finally influence their choice to do business with a company. As a result, you’ve now earned the trust of a new customer due to the direct influence of the incentive.
However, many businesses fail to implement incentives due to the unknown. But, you’re able to easily set up discount codes to provide customers with an incentive to make a purchase.
As an example, Smooth Sailing offers a 15 percent discount for signing up for their newsletter. This not only attracts more customers and encourages purchases, but offers lead generation to further promote their bottom line.
Reward Loyal Customers
While using incentives to attract new customers, you need to strive to turn those new customers into repeat loyal customers. Customer loyalty programs are excellent for customer retention for repeat sales.
Customers want to feel important; therefore, they will be more inclined to continue to do business with a company that values them as a customer. With targeted discounts rewarding your most loyal customers, you’ll fulfill your customers’ desires while promoting your business’s growth.
The most effective loyalty programs reward customers based on their frequency of purchases or amount of money spent. For example, JC Penny’s rewards customers with $10.00 for every $100.00 spent, while Subway once offered a free sandwich for every 10 subs purchased.
No matter the method, loyalty programs keep customers coming back as Starbucks reported a 26 percent increase in profits after unleashing their My Starbucks Rewards program.
Instead of taking a loss for your inventory that hasn’t sold, use the opportunity to feature incentives to clear out your old inventory.
Everyone typically expects sales around the holidays, but create a unique approach to offer discounts throughout the year, such as
By doing so, you’ll attract new customers and retain your current with great deals throughout the year. To streamline inventory clearance sales, you’re able to set up bulk pricing discounts to seamlessly manage the incentives for maximum performance. You’ll keep your revenue growth steadily increasing without having to take a hit on inventory that’s not selling.
Appeal to More Customers
By using incentives to attract more customers, you’ll help retain new customers by continuing to give them a reason to choose your business time and time again.
Ecwid will help you rise above your competition by offering the simple and effective resources you need to establish discounts, promotions, and special offers to help your customer base thrive.