When it comes to promotions, it’s not always black and white. There are many do’s and don’ts, but with successful promotional awareness, you can drive results and establish a strong connection to your customers.
- First, you need to know who they are – Sounds simple, but you would be surprised by how many businesses do not know their customers by name or how to contact them. To make this happen, give them perks such as reward earnings or loyalty benefits that open the door for them to give you their info and allow you to market to them. This is one of the key reasons to look for a loyalty or rewards program that gives you the data and necessary information to promote to your customers.
- Give them the option of how to promote to them – Don’t expect your customers to all be OK with email, text or app offers. They have a preference and using their customized preference in how you promote to them will produce the best response. When you run promotions, use all available channels so that your customers receive, read, and hopefully redeem those promotions.
- Make the promotions relevant – Think about what the promotions are as it relates to what you would consider in a promotion that would get you to act. Talk to your customers. For example, very few of your customers are going to come in to get $0.05 off for a drink. However, they might be very driven to an offer that gives them a free or half-priced cookie with a drink purchase. Promotions need to be relevant. Try different things and make sure you are not giving away more margin than you are gaining in margin from new sales.
- Focus on driving new sales for items your customer wants – As you build your database of customer activity that tells you what your customers are buying, you can begin to focus your promotions on items that customers don’t currently buy. This ensures you are driving new sales. For example, let’s say you have 30% of your customers that have never purchased anything inside your store, only fuel at the pump. To target those customers, use a strong offer such as a free dozen eggs with any in-store purchase. You get them to see the inside of your store and with it, an opportunity for them to see all the options for them to purchase now and in the future.
- Don’t over-promote – If your customers receive too many promotions, they’ll likely unsubscribe from your communications or delete your app. There are general rules to follow. We recommend no more than one offer or promotion per week and to ensure that it is relevant and valuable to your customers.
- Measure and react to results – If you want to improve your response rates and resulting sales impact, you need to measure each promotion to see what is working and what isn’t. If possible, try to measure down to sub-groups of your customers and, over time, fine-tune your promotions to narrower groups of customers to ensure a high response rate from those customers.
- Always monitor and change with new options and trends that become available – Watch and learn from other businesses and read articles you see about new trends and options that are available for you to promote and market to your customers. It is vital to ensure your marketing does not become stagnant or decreasingly relevant to your customers. Also, use the promotions to talk to customers about your new products and services.
Tecmark’s client team takes the above approach with our customers to ensure their loyalty program is driving results. If you would like to know more about how this robust promotion approach can help your business get results, please reach out to us to discuss your specific situation and needs.
Founder & CEO