Kindra K, Marketing CoordinatorAug 25, 2016 @ 7:43PM
Everyone loves a good discount. So, how can you run a successful sale to increase your revenue and gain more customers? Check out these tips and tricks to learn how to expand your business!
Have a Reason For Your Promotion
Sending out promotions willy-nilly might lead to some success, but to really create a great promotion you should have a reason behind it. Do you want to generate more referrals? Introduce a new service that you are now offering? Up your business during a slow season? Be sure to define a goal you want to accomplish during your promotion and create the discount accordingly.
You also need to pay close attention to the timing of your promotion. If you want to run a New Year’s sale to increase your business in January, make sure you’re not sending out the information on the promotion in September. Sending out discount coupons too far ahead of when the sale actually takes place will cause your customers to forget about it.
Have a Target Audience
It’s important to know your customer and create a promotion that appeals to them. Oftentimes, it may even be better to cater your offer toward a specific subset of your customers. For example, if you’re offering a service to remove pet hair from couches, it would be a waste to send this promotion to customers you know don’t have pets. A little extra time in the planning of your promotion can save you lots of money in the long run!
Give the Right Incentive
Too big of a discount and you’ll be losing money, too small and your customers won’t use it. It’s all about finding the discount sweet spot to make you more money and make your customers happy! This will take a bit of trial and error, so we recommend starting out with some test discounts to see how they fare before putting resources into bigger promotions.
How are you going to tell people about the discount? Emails? Postcards? Newspapers and magazines? Get creative with your wording and messaging on whatever medium you choose. Eye-catching graphics and slogans will go a long way in getting your audience to actually participate in the promotion!
In this day and age, social media can also be a great resource for getting the word out about promotions. Remember not to be too wordy and to use attention-grabbing pictures. You can also utilize other unique ways to grab customer’s attention. Holding a contest or giving out a prize can help incentivize your customers to take advantage of your promotion!
Specify Start & End Dates
Giving people a time-frame to utilize the promotion will help create a sense of urgency for them. Having a specific end date will help ensure that customers realize they need to act quickly in order to get the discount. Keeping things open-ended doesn’t give customers any reason to use the promotion now, and chances are if they don’t use it quickly, they will simply forget about it.
Track Your Success
Once the promotion has launched and you’ve started booking customers from it, you need to keep track of how the promotion did. Pay attention to the type of customer that responded. You can then create a simple return on investment (ROI) calculation to see how you did. ROI is equal to the (gain from investment – cost of investment)/cost of investment.
For example, if your promotion results in $500 in revenue and cost you $200 to run, then your ROI would be: (500-200)/200 = 150%. This calculation gives you an easy way to tell how well your promotion did and whether it will be worth repeating again in the future!
Keep An Eye On the Competition
As a final word of advice, make sure you are always keeping an eye on what your competition is doing. If you are both offering a Labor Day discount, you want to be sure that your discount is at least on par with theirs, if not better. If your audience sees you are both running promotions but your competition is offering a better discount, they will likely go with your competitor, meaning you spent a lot of time and money on a promotion that won’t be very successful.
Promotions can be key to getting and retaining customers, so it’s important to make sure you are running them in the most effective way. It will take a bit of testing to figure out what works best for your target client base, but with these tips you’ll be building up your revenue and outrunning the competition in no time!