Sales promotion explained

What is a sales promotion?

Sales promotions help drive growth, create brand awareness, and boost revenue. This marketing plan affects consumers' behavior and helps achieve business, retail, and e-commerce goals.

Why is sales promotion important?

First and foremost, sales promotion is a dynamic way to get consumers' attention (new and current customers) and encourage them to act. In today's competitive market, where consumers have many choices, promotions act as persuasive incentives that make customers want to buy. Whether through discounts, coupons, or limited-time offers, sales promotion examples create a sense of urgency that can lead to immediate sales.

Secondly, effective sales promotion strategies directly impact a company's finances. They can increase sales, clear out excess inventory, and generate demand for products or services. This, in turn, contributes significantly to revenue growth and profitability. Moreover, sales promotion techniques can help build customer loyalty and keep existing customers returning by providing extra value and fostering long-term relationships.

Furthermore, sales promotions are valuable for launching new products and entering new markets. They provide a way for new products to gain exposure, attract early adopters, and establish a strong presence amongst new customers in a limited time. 

Additionally, well-executed promotions with contextual conversation can lead to delighted customers and positive word-of-mouth marketing, further expanding a company's customer base within a short period of time. 

Top 6 reasons why sales promotion techniques are important for your business

1. Grab eyeballs

Grabbing the attention of potential customers is crucial. Creative and attention-grabbing sales promotion activities can make a significant impact. For example, Burger King stole customers from McDonald’s using creative geotagging in their campaign known as - Whopper Detour; they encouraged customers to use Burger King’s mobile app to order from their rival McDonald's and then guided them to the nearest Burger King outlet! This bold move garnered widespread attention and highlighted the importance of eye-catching promotions in creating initial interest.

2. Highlight product utility

Sales promotions are vital in showcasing a product's utility, benefits, and features to potential and new customers. This becomes even more effective when customer relationship management (CRM) tools like Freshsales support this. For instance, Freshsales allows businesses to track customer preferences and behaviors, enabling tailored promotions that align with individual needs. This personalized approach enhances the perceived utility of the particular product, increasing the likelihood of conversion.

3. Stimulate demand for new products

Stimulating interest and sales is essential when launching new products. Sales promotion activities are a powerful tool in this regard. For example, tech companies offer exclusive pre-order discounts for their latest gadgets. Additionally, tools like Freshsales aid in lead segmentation, intelligent lead management, and nurturing, ensuring that the right audience is targeted for new product launches. Using Freshsales, businesses can generate buzz, attract early adopters, and drive initial sales for newly launched products. 

H4:  4. Differentiate your product from competitors

Sales promotions provide an opportunity to highlight a product's unique selling points and differentiate it from competitors. For instance, offering limited-time promotions with bundled accessories or extended warranties in the smartphone industry can set a product apart. Freshsales' data-driven insights are invaluable in understanding customer needs and preferences. By leveraging this information, businesses can position their products more effectively and offer promotions that resonate with their target audience. 

5. Boost the sales force performance

Motivating and incentivizing the sales team is essential for achieving better results. Sales promotions, such as performance-based bonuses or contests, can increase sales and productivity. Freshsales' sales engagement platform streamlines sales processes, allowing the sales force to focus on high-priority leads. Further, its live chat software boosts the sales team’s performance and enhances customer satisfaction through personalized interactions.

6. Increase off-season demand

Sales promotions are instrumental in maintaining consistent demand throughout the year, even during off-season. For instance, travel and hospitality businesses often offer off-season discounts and packages to attract tourists during slower months. Freshsales' CRM features help companies maintain customer relationships, enabling targeted promotions and communications during low-demand periods. This ensures that sales remain steady and customers are engaged, even when market conditions are less favorable.

Incorporating these strategies and utilizing tools like Freshsales can significantly enhance the effectiveness of sales promotions, ultimately driving business growth and success in today's competitive landscape.

What are the objectives of sales promotion techniques?

Sales promotions have diverse objectives, primarily motivating sales teams and elevating product sales. Through incentives, discounts, or exclusive offers, businesses aim to ignite salespeople's drive, leading to heightened sales performance. Freshsales stands as a valuable asset in this endeavor, offering comprehensive CRM analytics to assist in tracking and assessing the impact of promotions. It empowers businesses with valuable insights and data-driven metrics, facilitating the evaluation of promotional strategies for enhanced results. 

Two of the most prominent objectives of sales promotion activities include:

Motivate salespeople to talk to more leads and explore new territories

By offering incentives and rewards tied to lead engagement and territory expansion, businesses can inspire sales representatives to reach out to potential clients in new markets proactively. Freshsales, equipped with robust CRM capabilities, aids salespeople in lead management and territory tracking. It also ensures efficient lead prioritization and management.

Case study: Freshsales helps Lotum, a meeting solutions company, transform its business operations and improve the quality of its customer engagement. 

Increase product sales and move slow-moving products faster

When strategically implemented, sales promotion examples like BOGO, flash sales, free samples, etc., create a sense of urgency among customers, spurring them to purchase. Freshsales complements this by providing features for in-depth sales data analysis and customer behavior tracking. It enables businesses to identify opportunities for targeted promotions and optimize inventory management, ensuring slow-moving products find their way to eager customers faster and more efficiently.

4 Sales promotion strategies to boost sales

Any big or small business can implement the four best sales promotion strategies to attract new customers and their loyalty. However, these strategies should be data and insights-driven to gain maximum output. Freshsales CRM helps its users gather and analyze (structured and unstructured) customer data for successful sales promotion activities like loyalty programs, brand awareness, and fad sales. Here are different types of promotion strategies:

1. Push and pull strategies

Push and pull strategies differ in their approaches to sales promotion techniques. Push strategies involve actively pushing products or services toward potential/new customers, often through targeted outreach efforts. Freshsales' CRM functionalities support push strategies by facilitating personalized outreach and follow-ups. On the other hand, pull strategies rely on attracting customers through content marketing and creating demand. Freshsales aids pull strategy by managing and nurturing leads organically through informative content.

2. Target the right audience

Identifying and targeting the right audience is paramount to boosting sales and ensuring re-sales promotion activities’ success. Freshsales excels in this aspect with its lead segmentation and CRM analytics. These features assist in identifying high-potential leads based on behavior and demographics, enabling businesses to tailor promotions to specific customer segments effectively. Targeting the right audience enhances conversion rates, increases loyal customers, and maximizes promotional outreach in a short time.

3. Limited period offers

Time-sensitive or limited-time offers like flash sales, limited period free shipping, BOGO, and One-time offers create a sense of urgency among customers, compelling them to take immediate action. Freshsales' CRM automation features allow businesses to schedule and manage time-bound promotions seamlessly. By leveraging these consumer sales promotion capabilities, companies can quickly implement, driving sales and encouraging customers to make prompt purchasing decisions. 

4. Track promotion strategy performance

Measuring the performance of sales promotion techniques is vital for optimization. Freshsales' CRM analytics and reporting provide valuable insights into promotion campaign effectiveness. Businesses can fine-tune future promotion campaigns by analyzing customer responses, conversions, and engagement data, ensuring higher returns on investment and sustained growth. Monitoring performance helps adapt strategies to changing market dynamics and customer preferences.

Examples of B2C sales promotions

More than 78% of customers said they would only consider an offer tailored to their prior interactions with the company. B2C sales promotion examples like discounts, coupons, free shipping, vouchers, etc., help businesses grab customer attention and increase customer satisfaction. However, implementing these sales promotion examples works best when customized per the target audience. Freshsales CRM data can help businesses segment their B2C customers and tailor promotions based on their preferences and behavior.

7 Most common B2C sales promotion examples used by businesses

1. Discounts

Discounts significantly impact price-sensitive customers and drive sales by offering lower prices. Analyzing customer responses and preferences helps tailor discount strategies for maximum effectiveness. Freshsales' CRM capabilities allow tracking customer responses to discounted prices, optimizing design for better results.

2. Coupons

Coupons are a widely embraced B2C sales promotion example, offering direct savings to customers. Tracking coupon usage can gauge their impact on repeat purchases and loyalty. Freshsales' CRM can monitor coupon usage and effectiveness, aiding in refining reduced-price coupon strategies.

3. Free shipping

Free shipping appeals to online shoppers by eliminating extra costs. As per Statista, the additional shipping cost was stated as the primary reason(with 48% votes) why consumers abandoned their orders during checkout. Understanding customer shipping preferences aids in targeted promotions, enhancing the shopping experience. Freshsales' CRM analyzes customer shipping preferences, enabling targeted free shipping promotions.

4. Free samples

Free samples generate product trials and attract potential customers. The first purchase a customer makes after trying a sample can be a pivotal moment that solidifies their decision. The impression created during their first-time experience can significantly influence their future purchasing decisions. Segmentation based on interests and preferences ensures that samples reach the most relevant audience—Freshsales’ CRM data segments potential customers for efficient free product sample distribution.

5. Cashbacks

Cashback promotions encourage repeat purchases and build loyalty. Tracking customer behavior identifies opportunities for compelling cashback offers. Freshsales' CRM features to track customer behavior, identifying opportunities for cashback promotions.

6. Exhibitions

Exhibitions expose brands and generate leads. Efficient lead management is crucial to converting exhibition leads into active opportunities and driving business growth. Freshsales' lead management streamlines the conversion of exhibition leads into active opportunities.

7. Competitions

Competitions and contests engage customers and create excitement around a brand or product. Managing leads generated from competitions through personalized communication fosters customer interest and loyalty. Freshsales' CRM functionalities assist in operating leads from the competition, nurturing them for increased engagement, loyalty, and targeted promo strategies.

By implementing these sales promotion techniques effectively with the help of Freshsales CRM capabilities, businesses can enhance customer engagement, drive sales, and achieve their marketing objectives.

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B2B sales promotion examples

B2B sales promotion examples free trials, buyback allowances, trade shows, discounts, coupons, rebates, and free shipping to generate leads, increase sales, and build customer loyalty. Freshsales CRM can help you target your promotions, track their results, and engage with information and prospects.

1. Free trials

Free trials offer potential B2B customers a risk-free opportunity to experience a product's benefits and capabilities. This hands-on experience is invaluable in showcasing the product's value proposition, functionality, and suitability to the customer's needs. Businesses can use free trials to build trust, demonstrate expertise, and address customer pain points directly. Freshsales automates lead follow-ups and nurturing during trials to drive conversion.

2. Buyback allowance

Buyback allowances incentivize us to consider upgrading or replacing existing products. By offering favorable terms for returning or exchanging old products, businesses can encourage customers to invest in newer, more advanced solutions. This strategy boosts sales and fosters long-term customer loyalty by demonstrating a commitment to customer satisfaction. Freshsales manages customer relationships and identifies buyback opportunities based on needs.

3. Trade buying allowance

Trade buying allowances are designed to stimulate bulk purchases from B2B customers. This strategy leverages economies of scale, allowing businesses to offer discounts or incentives for larger orders. It encourages customers to consolidate purchasing, streamlining supply chain logistics and strengthening the business relationship. Trade buying allowances can result in increased order volumes and improved cash flow. Freshsales analyzes bulk purchasing trends and manages trade customer relationships.

4. Merchandise allowance

Merchandise allowances are a means of enhancing business partnerships by providing additional value. They involve offering merchandise, such as branded items or promotional products, to customers as part of a collaborative effort to achieve shared goals. This strengthens the relationship and extends the brand's reach and visibility, contributing to mutual success. Freshsales manages vendor relationships and tracks merchandise allowance offers and their impact.

5. P.O.P display

Point-of-purchase (P.O.P) displays are crucial in B2B environments as they impact buying decisions at the moment of purchase. Effective P.O.P. displays create visual appeal, convey product information, and influence purchasing choices. They are handy for showcasing new products, promoting special offers, and increasing brand visibility within the B2B retail landscape. Freshsales manages sales opportunities and customer interactions at the point of purchase.

6. Free merchandise

Providing free merchandise in B2B scenarios is a pris tactic to attract and engage customers. This strategy can effectively generate interest, build goodwill, and foster a sense of reciprocity among customers. By offering relevant and valuable merchandise, businesses can create positive associations with their brand and encourage future business interactions. Freshsales manages free merchandise distribution and tracks its impact on lead conversion and satisfaction. 

Sales promotion ideas to boost sales

Customer attention is short, and it is even more challenging to retain it with fierce competition. Therefore, businesses must focus on creativity and innovation with sales promotion activities for a continuous sales boost. One such strategy is understanding customers’ pain pointers across their product journey and providing personalized campaigns to attract them. Freshsales AI-driven CRM suite helps draft customized messaging through customer segmentation, lead scoring, custom field and tag categorization, post-campaign analysis, and recommendations.

1. Humanize your brand

Humanization involves showcasing the people behind the brand, sharing authentic stories, and engaging in genuine interactions. By doing so, businesses can build deeper connections, foster customer loyalty, and create a positive brand image that resonates with their target audience. Freshsales' CRM features enable personalized interactions across messaging channels and customer relationship nurturing at every step of their journey through data history and behavioral analysis, adding a human touch to engagements.

2. Industry conferences

offer networking opportunities, showcasing products or services, and gaining exposure. They allow businesses to connect with potential customers, partners, and industry influencers. Conference participation can lead to valuable leads, partnerships, and increased brand visibility, ultimately driving business growth. Freshsales' CRM capabilities assist in lead management and nurturing from conference events, optimizing ROI and strengthening customer relationships.

Create campaigns that highlight buyer pain points

Addressing buyer pain points through targeted campaigns involves identifying and empathizing with potential customers' challenges, needs, or frustrations and tailoring marketing efforts to provide solutions. For example, Let's consider a healthcare tech company. They identify that healthcare providers are overwhelmed with administrative tasks, leading to burnout. The company launched a campaign titled "Simplify Your Workday" that promotes its sales software solutions for automating administrative tasks. They offer whitepapers, webinars, and case studies demonstrating how their product can reduce administrative burdens.

Freshsales' CRM functionalities are vital in capturing and analyzing customer pain points through data gathering and analysis and creating insightful campaigns. These targeted campaigns resonate with potential customers and establish the brand as a problem solver. It builds trust and increases the likelihood of conversions because customers feel the business understands and cares about their challenges. 

1. Free goodies

Offering complimentary items as a promotional strategy can significantly impact customer engagement and loyalty. Freebies, like samples, merchandise, or exclusive content, attract customers and create positive associations with the brand. Freshsales' CRM data aids in tracking customer preferences and feedback, allowing businesses to customize free goodies promotions for optimal results.

2. Social media giveaways

Social media giveaways effectively broaden the brand reach and generate excitement around products or services. They encourage audience participation, foster user-generated content, and boost brand visibility. Freshsales' CRM capabilities for social media interaction management and tracking customer engagement from giveaways streamline campaign administration.

3. Loyalty programs

Loyalty programs are essential for nurturing customer loyalty and encouraging repeat business. They incentivize customers to make repeat purchases, provide referrals, and regularly engage with the brand. Freshsales' CRM functionalities manage customer loyalty data and facilitate personalized loyalty programs to enhance customer retention.

4. Referral programs

Referral programs leverage satisfied customers as brand advocates. Customers are encouraged to refer friends and colleagues, expanding the customer base. Freshsales' CRM features track referrals and simplify communication with potential leads generated through referral programs, creating a valuable source of new business opportunities. 

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5 Steps: How to get started with sales promotions

There is no set formula. However, every sales promotion strategy should follow these 5 steps to gain maximum results.  

1. Track sales promotion campaigns

Monitoring and measuring the success of sales promotion activities and campaigns is crucial. It allows businesses to assess campaign effectiveness and make data-driven adjustments for better outcomes. Freshsales' CRM analytics and reporting capabilities provide the means to track key performance indicators (KPIs), empowering businesses to fine-tune their strategies based on valuable data-driven insights.

2. Send emails using a CRM

Research indicates that 49% of individuals would prefer to receive weekly email blast campaigns from their favorite businesses, making email a suitable medium for this communication. Utilizing a CRM like Freshsales for email marketing campaigns offers numerous benefits. It streamlines email marketing efforts, automates processes, enables personalization, and provides advanced tracking features. Freshsales' email marketing automation, personalization, and tracking capabilities ensure effective communication with prospects and customers, enhancing engagement and conversion. It also provides ready-to-use templates that can also be customized as per use.

3. Use the CRM for lead engagement

Freshsales' CRM is a powerful tool for engaging leads across various channels. Timely and relevant communication is essential for nurturing leads effectively and ultimately converting them into customers. The CRM facilitates consistent and meaningful interactions with leads, sizing the conversion process.

4. Use AI to contact the right leads

AI-powered tools within Freshsales are pivotal in identifying high-potential leads for targeted outreach. AI automates lead scoring and qualification, significantly improving the sales team's efficiency. This ensures that sales efforts are concentrated on leads with the highest conversion potential, maximizing resource utilization.

5. Stay on top of sales activities

Freshsales' CRM is instrumental in tracking sales activities and managing customer interactions. It ensures a well-organized sales pipeline, allowing sales teams to prioritize effectively. Additionally, the CRM streamlines follow-ups with potential customers, enhancing overall customer relationship management and driving sales success.

Steps to craft an effective sales promotion budget for maximum results

Setting a clear budget for sales promotion is very important. The investment amount helps create the plan, choosing a promotion medium, compliance adherence, volume of discounts, coupons, etc., and allocating resources efficiently for maximum impact. Outlined here are four steps that can help you create an effective sales promotion budget.

1. Harnessing the power of personalization in sales promotions

Personalized promotions offer several benefits in engaging customers and boosting conversion rates. Freshsales' CRM is instrumental in tracking sales activities and managing customer interactions. It ensures a well-organized sales pipeline, allowing sales teams to prioritize effectively. Additionally, the CRM streamlines follow-up email with potential customers, enhancing overall customer relationship management and driving sales success.

2. Navigating legal and ethical considerations in sales promotions

Emphasizing compliance with legal regulations and ethical standards is crucial in sales promotions. Ensuring fairness and transparency in promotions is essential. Freshsales' CRM aids in transparent communication and record keeping, helping businesses easily maintain compliance.

3. Measuring ROI and evaluating sales promotion success

Tracking and analyzing the return on investment (ROI) for sales promotion activities is vital. Businesses need to assess promotion success using relevant metrics. Freshsales' CRM analytics is pivotal in evaluating promotion performance and providing insights for future strategies.

4. Creating a lasting sales promotion technique

Developing a comprehensive and adaptable sales promotion strategy is key. Market research and customer insights are fundamental in shaping this strategy. Freshsales' CRM functionalities, such as forecasting sales opportunities and utilizing historical data, contribute to optimizing long-term promotion planning, ensuring lasting success.

 The bottom line is that the sales promotion technique is a powerful tool that, when integrated effectively into a company's marketing strategy, can drive business growth, increase revenue, and positively impact the company's financial performance. With the right CRM partner like Freshsales, your business can deploy effective, data-driven sales promotion campaigns, ensuring optimized brand awareness, revenue boost, and customer retention.