Smart and effective marketing starts with a strategy. Before planning out specific promotions, 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 promotional strategy will work best, and helps business owners later evaluate whether the promotion was successful. It’s also crucial to make a budget, including how much you can afford to invest in promotions, and what you need to sell to make the investment worthwhile. It’s important to consider your goal and supporting promotional strategies carefully. Here are a few ideas to help get you started.
New customer acquisition is one of the most important activities for a business, especially a small business. 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 value.
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 Z (those born between 1996 and 2015) and Millennials (born between 1981 and 1996). Research from Swift Prepaid Solutions found that 83% of Generation Z and young Millennials are more loyal to brands that offer value-added rewards and surprises.
The market for social media marketing is constantly growing. Roughly 3.2 billion people, half of the world’s population use social media, and 52% of online brand discovery happens in public social feeds. 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 about 50 dollars in return. The cost-effectiveness of email marketing makes growing your email list a smart promotional goal.
According to Nielsen, 80-85% of fast-moving consumer good launches fail. 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 grow your business. Whatever your goals, spend the time to think through which promotional strategy offers you the best shot at success.
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