The Power of Promotions
It was back in 1887 when Coca-Cola distributed the world’s first promotional coupon. Those in receipt of the coupon could redeem it for a glass of Coke. The drink was only introduced a year earlier. Now, here it was, benefitting from this innovative promotional strategy. Of course, it was unlikely that the company knew the influence this strategy would have on the future of commerce.
Coke is now the world’s best-selling carbonated drink, as well as being a household name. That’s thanks to over 180 years of clever marketing strategies, including deals, markdowns, and yes, coupons.
Now almost all retailers and brands use promotions such as discounts in order to grow their businesses. We’re seeing plenty of them being offered online too. Grocery stores, for example, offer coupons to first-time shoppers, and online casinos allow us to play slots with jackpots using a free sign-up bonus.
A company that understands the psychology that goes into special offers have a more favourable brand image, more long-term profitability and sales, and they provide happiness to customers, both old and new.
While the likes of Black Friday and holiday promotions are particularly popular, there are deals to be had all year round. Here are just a few ways that freebies and discounts can influence a brand’s success.
Contents
Deals Increase Overall Revenue
Savvy buyers know where and when to seek out a good deal, and companies that create special offers provide win-sin situations for retails who increase their sales and buyers who save money. Big companies are increasingly making coupons part of their marketing in order to improve their bottom lines. Retailers that succeed use multiple channels in order to do this. They also know that their customer include both those buyers who have no problem with paying full price and those who prefer to wait for new coupons to come around. These retailers cleverly provide special deals to different segments of their businesses to encourage buyers to complete their next purchase.
Discourages Shopping Cart Abandonment
For the majority of buyers, making a first-time purchase at full price without having any personal experience with the item or without having read any peer reviews can be intimidating. Even a tiny discount can alter the attitude of a buyer with what they regard as a risky purchase.
One survey from RetailMeNot revealed that 80 percent of buyers are motivated to make their first purchase with a company they’re unfamiliar with if they find an offer or a discount. Without a special deal, buyers would otherwise leave their carts without making a purchase.
Increase Customer Loyalty
Promotions can boost customer loyalty by spreading the word about rewards programmes, special pricing, and other incentives to make a purchase. Existing buyers are a company’s key target market, as they’ve already established the relationship and can typically access the data that makes direct marketing a possibility.
When a brand reminds customers about its offerings on a regular basis, they may start to visit that brand first for whatever they need, bypassing other options. When a company makes it clear they have the best product and price through effective marketing, it often results in increased brand loyalty.
Conclusion
The best promotions and discount strategies help a business:
- Avoid bargain hunters who may take advantage of promotional resources without ever converting into returning and loyal customers.
- Encourage higher average order totals, repeat purchases, and new product trials via incentives that see buyers adding more products to their shopping carts and completing the check-out process.
- Preserve a company’s integrity by limiting the number of promotional coupons customers are able to use and avoid deep discounts.
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About the Author
Eddie Miller
Eddie is an Associate Editor in London, UK. He coordinates client content and sponsored articles. Eddie has two Masters in language and spent half his life in the teaching field. He now owns an Amazon business and runs a wooden DIY workshop.