Sales, specials and promotions can be an effective tool, both for drawing new and existing customers into a store, and getting them to spend more once they’re in. But when promotions are executed broadly, haphazardly, or without a specific goal or target in mind, they can actually hurt the bottom line.
Today, we’ll discuss a few tips for running a coordinated, effective promotion, courtesy of Harvard Business Review.
Match the Tool to the Job
What’s the goal of your promotion – to increase total spend, to make more sales, to attract new customers, or something else? Make sure the offer matches that intended outcome.
Promote at the Right Time
Understanding when customers shop is key to running a successful promotion. In one recent study, customers were more likely to respond to promotions during holiday shopping seasons and on weekends. Offering weekday promotions may not get busy customers in the door. Look at your sales data to determine when and how your customers shop, and run promotions accordingly.
Select the Right Products
When deciding which products to place on promotion, look at sales data to determine which will have the biggest ROI. Often, everyday basics are not huge drivers, but in-season or limited-time items may bring more customers into the store. In addition, be careful not to overly promote certain marquee items, at risk of eroding their value.
Target the Most Impactful Customers
Examine your point of sale data to determine which customers are most likely to participate in the promotion, and to help you meet your goal.
Retail Tech carries a wide variety of new and refurbished POS equipment. We offer installation and staging, POS printer repairs, and more. If you need help choosing a hybrid POS system, contact our POS systems specialists for help finding the perfect point of sale solution for your small business.