8.11:
Sales Promotion II
Sales promotion helps attract customers and promote sales in various ways.
For example, coupons offer item discounts, such as Kellogg's buy-one-get-one-free deal, which makes it cost-effective.
Free samples allow customers to try before buying and build trust, like Spotify's 30-day free trial.
Premiums are free items earned with purchases that enhance the brand's perceived value, such as McDonald's Happy Meal toys.
Loyalty programs provide rewards, discounts, and special incentives to foster customer loyalty, like the exclusive benefits of Amazon Prime.
Rebates attract customers with partial reimbursements, like a dishwasher with a 100-dollar cashback offer. This makes future purchases of products seem more affordable.
Sales promotions like contests and sweepstakes are used to attract customers and also gather data.
Contests offer valuable prizes like cash rewards in a video game tournament.
Sweepstakes are lotteries where participants pay a minimal entry fee for a chance to win exciting prizes, from luxurious vacations to generous gift baskets.
Coupons and samples are inexpensive promotions, whereas premiums and loyalty programs have moderate costs. Contests, sweepstakes, and rebates are more expensive.
8.11 Sales Promotion II
Customer-oriented sales promotion refers to the practice of tailoring sales promotions to meet the specific needs and preferences of individual customers.
Customer-centric sales promotions have benefits, such as boosting customer engagement through personalized offers that align with their interests and preferences. This fosters stronger connections, enhances brand loyalty, and drives repeat purchases.
Additionally, improving customer satisfaction through personalized sales promotions tailored to individual customers enhances their perception of being valued by the brand, which strengthens the customer-business relationship.
This is followed by higher conversion rates achieved by tailoring promotions to address customers' unique needs and purchases and boosting sales revenue.
It also improves brand perception by understanding customer needs, offering relevant solutions, and establishing a customer-centric business. This builds trust, generates positive referrals, and creates a competitive edge in the market.
Disadvantages of customer-oriented sales promotion include increased costs, complexity in execution, privacy concerns, and potential consumer fatigue.
Personalized promotions require resources, expertise, and data analysis, which can strain budgets. Privacy issues arise from collecting and utilizing customer data. Too many personalized offers can lead to decreased engagement and effectiveness.
Striking a balance is crucial to avoid overwhelming customers.