Part VIII: The Top 7 Reasons You Need Effective Retail Promotions

Posted by Fred Lizza, CEO, Dydacomp

#7: You Need Them to Compete

You need high levels of traffic to keep merchandise moving, and promotions are one way to help drive traffic. Promotions that support loyal customers tend to result in purchases in larger quantities, making them an excellent target for promotions. Promotions can also be considered as a component of customer service because it provides information regarding the customer’s buying preferences and behavior.

Design promotions that are consistent with and enhance your brand’s image. Take time to review the success or failure of each promotion to determine the value and focus of future promotions.

Whether it’s free shipping, rewards programs, or special offers, sales incentives are necessary to compete. Dydacomp customers came together for an annual user conference in 2012 and a panel of business owners discussed the business benefits of free shipping as one of several promotional vehicles. One customer tried and later abandoned free shipping as a single promotion method, citing the size of orders were so small, that it was not cost effective to offer it. Instead, they found a combination of purchase threshold and reduced shipping incentives was more effective.

The Dydacomp customers went on to say that, if you’re different, you don’t have to be the low cost provider. They all agreed that promotions need to be specific and personal. One children’s clothing retailer focuses on their target market with fine-tuned campaigns. For example, households with children under the age of 12 and with birthdays in the next 60 days, would be candidates for a targeted campaign for items related to birthday parties, higher-end apparel purchased for a special occasion and costumes.

If you develop a personal relationship with your customer and offer excellent customer care and customer service, with a human touch, such as customer service staff, not recordings, available via the phone as well as the website, you set yourself apart from others. So, whether it’s 10:00 a.m. at your storefront or it’s 10:00 p.m. and your customer is on your eCommerce site, knowing who your customers are can make all the difference!

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