Why Promotions are so Important and Why You Should Run Them Often
A business person has to keep on thinking almost all the time. He has to think not only about the profit and loss of his business but also about expanding the business. Businesses have to keep on growing in order to stay in competition for a long time. The growth is only possible when a business is getting more return for its efforts than the amounts it is spending. When a business in running condition it is easy to do analysis on what’s working for it and what’s not working. With this data you can create new promotions.
Promotions are the attractive offers that businesses offer to their customers only for a limited time. During this limited period the company has to tie some goals and targets to its efforts. A business cannot run a promotion without setting targets. Even if a promotion is launched without a particular aim, the businesspersons will never know how successful the promotion is. It has to be mentioned here that businesses have to repeat their promotions and they can only do so when they know what promotions were most productive for them.
Why Are Promotions Important?
The most important purpose that a promotion serves is that it sets a business apart from its competitors. No business will ever need to run any promotions if there wasn’t any competition. You have to stay ahead of your competitors in order for customers to keep doing business with you. If there is a company that sells similar products or services to yours, you can only make customers buy from you if you have a special promotion going on. Of course, it is also equally important to spread the word about promotion to the people by using several advertising and marketing methods.
Businesses often have to bundle their products together in order to run a promotion. What they usually do is that they include a less popular item with a very popular item. This not only helps them sell their popular item more but also allows them to cross sell an item that customers have not given much attention to. If the bundled product is liked by customers, the business will then have 2 popular products. The sales will increase as a result and with a successful promotion like this the business will get more return on its investment.
Promotions also allow you to make use of your available data and create more useful data from it. As you continue to do business, you collect information of thousands and millions of customers. By using the right database software you can know the trends, patterns and inclinations of your customers. By using this data you can launch targeted promotions. By further collecting data of the promotion you can know your customers better. When you know them better, you can launch more successful promotions. In addition to that, when there is something available only for a limited time, customers like to talk about it.
When they talk about your promotion they become your marketing agents. They spread the word of mouth, and this results in more customers becoming interested in doing business with you. Branding is all about making your customers remember you. When they remember you they remember to do business with you. By launching promotions frequently you become a memory for the customer. Whenever a customer feels like buying some new stuff he/she will think of checking you out to see if there is a promotion going on.
The biggest benefit of promoting today is that you make use of various online platforms for marketing your promotion. You have blogs, social networking websites, video hosting websites etc. where you can spread the news about your promotion. This makes you visible on the internet the way you should be visible to your target market. By being visible on the internet you are already creating a very strong image of your business in the minds of the customers.
How You Should Launch A Promotion
The most important thing you need in order to launch a successful promotion is data. The more data you have the more you can be sure that your promotion will go in the right direction. First, you need to decide why you want to promote and what it is that you want to promote. Are you looking to promote an idea, a new product or a campaign? After you have decided the thing you want to promote you have to know your target audience and the platforms where your target audience can be best targeted. For example, you won’t want to think of promoting something for teenaged target audience and choose newspaper as the primary mode of marketing.
Now, you have to decide how and in what shape you will promote your stuff. When it comes to products you can simply reduce the prices of the products, include another complimentary item with the product, offer an additional unit of the product that the customer is buying, introduce discount coupons through websites like Coupofy, etc. While deciding the method of promotion you have to decide a budget for your promotion. Make sure you manage your promotion within the budget you have set because only then you will be able to know whether your promotion was successful or not. Your budget can also give you a good idea on what mode of promotion would be best for you.
The next most important step is to work with teams. You have to create teams for every step of the promotion. First, you have to create a team that will do the evaluation and find out how much the cost would be and how much revenue must be generated from the promotion. Next, you will have to create a team that will promote your stuff and will be at the forefront to face the customers. Another important part of your strategy is to make sure that there is a starting and ending date for it. Last but not least, let the latest tools and softwares help you monitor and keep record of your promotional campaign so you can decide which promotions to repeat and which not to.