In the mad scramble to get the attention of holiday shoppers, special offers and promotions are popping up left and right. Consumers are always looking for the best deals, and businesses want to make sure that their deals are at par, if not better, than their competitors. However, offering the better deal or the best promotion will not always mean better profits. So how do you create that balance?
Here are some common promotions that will help your store get those sales without sacrificing your profit:
- CONDITIONAL PROMOTIONS
Conditional promotions are a classic yet still effective approach to draw more customers during the holidays. What many businesses fail to take advantage of is switching the offers around to keep shoppers interested. For instance, the condition of having a minimum spend threshold in order to get a discount is a common promotion used by retail and online stores, and if your discount is lower or if the minimum threshold is higher than other retailers’, shoppers may not give your offer a second thought. Instead of offering a higher discount or lowering the spend requirement (which may obliterate your profits), offer another type of promotion, like making the purchase by a certain date, or discounts made available to loyalty card holders only – both offer discounts but the former adds urgency, while the latter adds exclusivity. Having a series of different offers help draw attention to your store.
- CUSTOMER REFERRALS
With the hustle and bustle of the holidays, you may think that you’re too busy to have a referral program or to follow up with your customers. It’s easy to get caught up in the sales that you are getting now as opposed to how you can get more business out of those existing shoppers. However, with a little extra effort and an offer that benefits both the referrer and referee, you can multiply your sales potential and reap results even beyond the holiday frenzy. For instance, offering store credit can turn that one-time holiday shopper into a repeat customer.
- BUNDLE AND BULK ORDER DISCOUNTS
Bundle discounts only work if you have the right pair or set of items together. Nothing annoys a customer more than bundle items that make no sense together. If you’re not sure what items will sell well together, create options. The key to making a profit is to mix items with poor profit margin with items that have better margins. Bulk order discounts are also a great way of selling more than one item at a time, with just a fraction of the effort.
- GIFT CARD DISCOUNTS
Gift cards can be one of your most profitable items, with or without the discount. Whether you are offering a percentage off the price of the card, or adding a percentage to increase its value, gift cards work because they’re a quick fix to the problems of an indecisive shopper. More importantly, gift card redemption can benefit your business in two ways: gift cards that are not redeemed for full value means the unused amount is automatically a profit, and shoppers who spend more than its value means additional profit.
It’s okay to want to be generous during the holidays, but choose your promotions wisely. Before handing out those flyers or hanging those posters, make sure that your generous offers keep your profit intact.
