What are the rewards of consumer sales promotions for businesses?
It is clear what the benefits of sales promotions are for consumers – and they know it. Demand for rewards and consumer incentives have grown immeasurably in the last year and it’s now what consumers expect wherever they shop. On the surface it would appear that this is a one-sided relationship in which consumers are holding businesses over a barrel. Sales promotion shouldn’t and mostly isn’t something that businesses are forced to resort to. Managed properly and thought out thoroughly, sales promotion can be mutually beneficial – particularly in the current economic climate. So what are the benefits of consumer sales promotions for businesses?
In the long-term a loyal customer is worth far more to a business than an occasional high purchaser. When a customer is recognised as loyal the emotional involvement with the brand is increased. Showing recognition by offering consumer incentives for loyalty stands to solidify the idea of staying loyal to the brand. Loyalty can be rewarded in a number of ways from offering a coupon at the checkout to points collection cards.
Create positive brand associations
Working together with another brand creates a sense of corporate validation and helps your brand to tap into new loyal customer bases. Whatever you trade in there are sure to be a synergistic brands for you to work with, for example hotels and theatres or gyms and sports clothing retailers. It can also work well for pushing you brand’s image in a new direction by moving away from the logical partnerships, for example if you want to raise your green credentials how about teaming up with environmental brands such as The National Trust?
Increase brand recognition
Brand recognition is essential for enticing customers to buy your product/service over another. The authority recognition gives your brand offers consumers confidence in your product/service, as they know what to expect. Increasing brand recognition comes from offering your sales promotion to a wider audience than your regular customer base. A good example of this is featuring a consumer incentive or exclusive discount in a loyalty and membership programme or discount club. These programmes are usually a free marketing option, managed by an external agency that have an large existing customer base.
Reach new consumers
Sales promotion can be one of the most effective ways to catch new customers’ eye. The best ways to offer a discount or consumer incentive is through a loyalty and membership programmes/ discount club or a chance to win a grand prize. By doing this you are giving consumers a reason to stray away from the brands they are usually loyal to. Competitions are an instant way to catch people’s attention but loyalty and membership programmes or discount clubs go out to an established customer base and can sustain a lasting message.
These rewards are useful to any business and however you want to represent your brand there is a sales promotion answer for your business, that can be effectively integrated to compliment any marketing plan.