Smart and effective marketing starts with a strategy. Before planning out any promotions, small businesses should think through what they are looking to achieve.
For instance, promotions that work well for building customer loyalty may not work as well for bringing in new customers. Defining the business goal determines what kind of promotion will work best, and helps business owners later evaluate whether the promotion was successful. Not all goals require slashing prices, so consider your goal and promotion carefully. Here are a few common goals and promotion ideas to help get you started.
New customer acquisition is one of the most important activities a business can do. Increasing the number of people who interact with your business grows your base of possible customers and makes it easier to hit your revenue goals.
Offering new customers a deal on their first purchase is well worth its weight for their potential lifetime values.
Consider these promotions
Even businesses with a limited budget can increase sales by promoting customer loyalty. Personalization is one way to generate loyal customers, especially with Generation K and Millennials. Making shopping fun is another way to attract loyal customers: consider that more than 50% Generation K (those born between 1995 and 2002) and Millennial consumers are loyal to products and services that are fun.
Consider these promotions:
The market for social media marketing is constantly growing: one million new social media profiles are created every day. Social media is also a unique way to effectively promote a business because it’s another form of word-of-mouth marketing. Customers who share your promotions or marketing messages are in effect endorsing them and spreading the word to their networks.
Despite the growth of social media, email is still one of the best ways to increase sales. According to the Direct Marketing Association (DMA), every dollar spent on email marketing brings in an average of 38 dollars in return. The cost-effectiveness of email marketing makes growing your email list a smart promotional goal.
According to McKinsey Global Institute, only one in seven new products will succeed. Yet new products that take off can become money makers that help smaller shops differentiate from big box stores.
Before planning a major new product launch, carefully test new products with smaller promotions.
The holidays are a great time to experiment with promotions and to grow your business. Whatever your goals, spend the time to think through which promotion offers the best shot at success. Plan out a budget, including how much you can afford to invest, and what you need to sell to make the investment worthwhile.
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