5 Types of Sales Promotions Proven to Increase Conversions
Believe it or not, there isn't a complicated secret to getting more revenue and increasing conversion rates. By simply implementing sales promotions into your marketing strategy, you can take your business to the next level.
You might be thinking, “ Is that all”? Well, the answer is yes. Just by running a sale or providing coupons, you can increase conversions in no time. Studies have shown that coupons make people feel happy, which brings in more bucks for you.
With that said, if you want to learn more about the types of sales promotions that are effective, keep reading the information below.
What are Conversions?
Conversion rates are important because they help business owners with their marketing. Also, they are an effective method of evaluating sales tactics. If your conversions are low, that's usually an indicator that it's time to implement a sales promotion strategy to boost revenue.
A conversion rate calculates the percentage of visitors to your website or online store that complete a desired goal, in comparison to the total number of visitors. For example, if you receive 10,000 visitors for the month and 400 of them make a purchase, that’s a 4% conversion rate.
How to Increase Conversions With Sales Promotions
Sales promotions are a great incentive for customers and a smart way to increase conversions. The worst thing for any business owner is to have hundreds or thousands of potential customers come to their store but not make a purchase.
However, sales promotions entice consumers by giving them perks. Every customer wants to feel like they're getting more bang for their buck.
Not to mention, many consumers are becoming financially savvy. While they’re browsing online stores, they're looking for the best deals. Therefore, when a visitor is browsing your online store, you want them to spend the money with you, not your competitor.
For example, let's say a potential customer is looking for a new purse. As they're comparing deals, your prices might be in the same price range as other retailers. But if you give purchasers a discount or another incentive, they're more likely to spend money at your store.
With just a simple sales promotion, you turned a visitor into a customer and increased your conversion rate.
Various Types of Sales Promotions
The great thing about running sales promotions is that there are numerous ways to provide perks to potential customers. Below are a few of them:
Who doesn't love a discount? This sales promotion is an oldie, but a goodie. If you want to increase conversions, this is the way to do it. By offering customers discounts, it makes them feel like they're getting a bargain.
You can either provide percentage discounts like 20% off or whole dollar amounts like $10 off. This type of sales promotion is attractive to potential buyers. Just make sure that you set a discounted amount that doesn’t hurt your bottom line.
2. Free Shipping
Offering free shipping is a big way to snag customers. In today's age of online shopping, a shipping fee can add an extra chunk of money into the overall cost of the purchase.
Actually, some customers will abandon their cart if they feel like the shipping price is too expensive. That’s why offering free shipping works like a charm. Giving customers free shipping can help you increase conversions for your online store.
If you're concerned about how removing the shipping cost might affect your margins, consider only giving the option to customers who spend over a certain amount.
3. Loyalty Points
As a business owner, you want customers to keep coming back, right? Well, one of the best ways to do that is by giving loyalty points.
This is one of those types of sales promotions that creates a loyal customer base. Not only that, but it encourages buyers to purchase from your store more often.
You can offer customers a percentage off once they've accumulated a certain number of points or give a free item once they reach their loyalty points threshold.
If you want to get customers to buy quickly, it's a good idea to offer more bonus points to first-time customers. You can also give extra points to buyers that make a purchase on a particular day.
4. Flash Sales
Nothing says hurry up and buy like a flash sale. If you're looking for a way to get in quick cash, this is the best way to do it. If customers know they can only get a certain price for a short amount of time, they're more likely to buy.
Send out a promotional email letting customers know when the flash sale will begin and how long it'll last. If your business can afford it, it might even be a good idea to offer larger discounts to bring in more sales.
Customers love receiving freebies. That's why one of the best sales promotions is to provide free products with a purchase. The good thing is, the item that you give away doesn't have to be expensive.
You'd be surprised how many customers will buy something if it means they can get a free tote bag. Also, doing this kind of sales promotion strategy gives you the opportunity to brand yourself.
You can give customers a t-shirt or keychain with your store logo on it, which helps to keep your company in their minds.
Get Your Business Booming With Sales Promotions
We hope this information about the different types of sales promotions helps to give your business the boost it needs. Running a successful store has its challenges, but it can be done with a little determination and a few smart marketing strategies.
Sales promotions have been around for years, and it's a tool that even the most successful business owners use. Once you start offering discounts and incentives to your customers, you'll likely get a boost in sales. After some time, your conversion rates should increase tremendously!