Walk into almost any retail outlet around the world today and you’re practically guaranteed to see at least one sign saying ‘2 for 1’ or ‘Buy One, Get One Free’.
Great ways to entice customers in and to make them spend a greater amount of money than they were initially planning on doing, these types of offers take more planning than most people realise and the reason why many small businesses make mistakes with them is that they simply make up these offers without any form of structured planning or development.
To help you produce the best product promotions possible, there are three key points that you always needs to understand.
1. Know your bottom lines
This is arguably the one piece of information that you need to know most, as it’s the information that’s going to determine which products you can choose to promote.
No matter how good of a deal you might see in a supermarket, for example, the simple fact is the supermarket won’t be making a loss (or if they do, it will be a marginal one and it will be for a very good reason) and it’s this that you have to keep in mind at all times.
You shouldn’t simply be picking a product to put forward for use in a promotion based on whether or not you like it or because it’s useful, but it should be based first and foremost on whether you can actually afford to offer, for instance, two for the price of one.
2. Pick a popular product
When you have your financial information in front of you and you’re trying to work out which product you should use for your promotion, it can be tempting to straight away pick the product that ‘s going to give you the best return.
However, you need to be basing your decision – after looking at your finances – on which products are the most popular, as although product promotions are about promoting specific products, they’re also extremely useful for increasing brand awareness.
This is simply because if a customer purchases one of your popular products as part of an attractive promotion, they’re likely to tell their friends and family, who’ll then tell their friends and family and so on.
Compare this with if you were to use an unpopular product for your promotion and although you’ll still see some rise in brand awareness, it will only be minimal and within the market where that specific product is popular.
3. Be creative and clever
As important as it is to pick the right product and ensure that you’re not going to lose money throughout the promotion, it’s imperative that you get the actual promotion itself right, as this can have a substantial impact on how successful it’s going to be.
A prime example is making the decision as to what is going to be the best type of promotion to use.
Is it going to be a buy one, get one free offer? Two for the price of one, maybe? How about a buy two, get one free or even a three for a dollar offer?
Work out what sounds most appealing, which is going to work best with your audience and run with it. Don’t be disappointed if it doesn’t work out at first, however, as no matter how much planning you carry out, it’s the live testing where you’ll get the best feedback.
Product promotions are fantastic ways to increase sales and brand awareness, but they can be particularly tricky to get right. By following the three steps here, however, you should be able to put together the foundation of a successful product promotion campaign.