In Britain we are currently experiencing the longest recession since records began and it is becoming increasingly hard for some businesses to continue trading. Retailers have been using numerous sales promotion tactics – encouraging consumers to spend money by offering discounts and rewards to customers who shop with their brand. With Halloween and bonfire night just passed and Christmas plus New Year on the horizon, there are many marketing and sales promotion opportunities coming along, perfect for targeting customer retention. But how valuable is it to offer seasonal discounts and what are the best ways to distribute them to the kind of customers who are likely to respond?

The changing seasons and special events such as Halloween and Christmas give consumers a reason to spend money. In the current economic climate consumers have become more cautious about spending money – often only buying the things they need. So the job of businesses and marketers is to make sure that their product is seen as a necessity. This is why seasonal discounts can work – it is seen as a special, limited time deal that everyone should get into the spirit of. The deal gives consumers the excuse they want and the sense of urgency needed to prompt an impulse purchase.

There are many reasons people respond to seasonal discounts, mainly using it as an excuse to treat themselves as well as others or merely trying to wait until the best deal is available. The element that all these reasons have in common is that the consumer is responding to a prompt – giving them permission to make a purchase even though times might be hard. These purchases range from the smallest of knick-knacks to big purchases such as furniture or electrical goods, so any retailer can benefit, given the right marketing strategy. By becoming a port of call for a seasonal discount this then showcases your complete consumer offering and encourages customer retention.

To make your seasonal offer work and ensure your message reaches a responsive audience your business needs to sufficiently highlight the seasonal discounts. This also gives you a reason to refresh your customer communications, giving them a new reason to listen to what you are selling and highlighting the brand benefits. This process should start before the event. By having a run up to an event and renewing the message as the days countdown, it gives consumers the chance to engage with the offer and consider using it.

It is also good to draw consumers in to the fun element of the season or event so they are engaging with your brand on a social level. Show insights into their lifestyle and be seen to offer to help them out with your products/ services. For example how about suggesting gift ideas at Christmas, costume ideas at Halloween or ideas for keeping kids entertained during the summer holidays? The value is in knowing your customer then showing that you understand their mindset and offering them what they want in a way that is mutually beneficial.

As well as in-store and point of purchase offers you can also offer a saving and subsequently a seasonal discount through a third party agency. There are a number of sales promotion agencies that have a substantial loyal customer base to who you can offer your discount to. The special offer you offer will then be distributed to the established customer base who respond to discounts and seasonal discount through regular e-shots, driving customer retention.

There are definitely benefits in offering seasonal discounts and some would even argue that they are still essential for retailers in the run up to Christmas, but as with anything it is essential that they are managed properly to get the best results.

Contact Us if you would like to discuss the customer retention and sales promotion opportunities for your business, by creating an exclusive discount, reward or seasonal discount for a loyalty and membership programme/ discount club.