This was the “special of the week” section of Rebecca’s talk: the place where many brands go wrong. Brands forget about the marketing process being just that, a process, and instead opt to focus on weekly promotions. I’m not saying that promotions shouldn’t be a part of your strategy, they should, but they should align with your overarching campaigns and not be the basis of your strategy.
Here are our top tips for running promotions the right way:
- Deeper deals, less frequently. We work with many brands selling both on self-branded and multi-brand ecommerce stores, as well as bricks and mortar boutiques, department stores and supermarkets. Our findings show that reducing at a greater discount but less often generates more revenue long term than more regular promotions at a smaller percentage off. Less frequent promotions also don’t devalue your brand as constant promotions can.
- Look at your buying patterns and focus your promotions around this data. Take the time to do this and you can reap the benefits later. Think seasonality – when people buy into products; look for lulls in sales and use promotions to pick up these periods; look for underperformers that should be selling better and use these as GWPs; all of this tricks can help you grow your revenue.
- It’s all about profitability. Always measure your promotional uptake. Look at your profitability for the promotion and compare it to a period for normal forecasted sales for that period. If your profits are down comparably, you must question was it worth doing the promotion? This scenario doesn’t always mean this is so, you have to see the bigger picture. Was the product short-dated or overstocked? Did you see an increase in sales after the promotion? Did you encourage people to buy into your brand? New signups?
Looking for more advice on promotional strategy? Email us firstname.lastname@example.org