Independent
and small retail stores go through periods when daily sales receipts are down.
To increase sales, attract new customers, and retain current customers, many
retail stores implement various sales promotion techniques. While most business
owners would love to sell products at full price all of the time, sales
promotions have proven effective at increasing the overall bottom line in many
retail stores. Understanding how to effectively run and track your sales
promotion campaigns are essential to increasing the profits in your store.
An effective
technique to increasing sales is to offer certain products at a steep discount,
which are called loss leaders. The importance of loss leaders is the ability to
draw new customers into your store. Most customers not only buy products that
are steeply discounted, but also other products that are selling for regular
price. Loss leaders are effective for selling overstocked items, increasing
traffic into your store and building brand awareness. Running loss leader
campaigns on a regular basis will lead to customers regarding your store as a
place that always has good deals. You should inquire with the manufacturers of
products you sell to ensure that offering a steep discount is an available
option.
Another sales
promotion technique is to offer point-of-purchase items. These items are placed
on the counter near the cash register. Many retail stores place items, such as
jewelry and makeup, near the register. Customers often buy point-of-purchase
items on an impulse. Many retail owners believe that point-of-sale products
result in an increase in revenue.
Repeat
customers are essential to the success of a retail business. One method to
encourage customers to return is through reward programs made available to
loyal customers. A more recent phenomenon is offering coupons to customers who
‘Like’ the store’s Facebook page. This not only leads to customers coming to
your store to use the coupon, but also allows you to send messages to your
customers through Facebook to keep them informed on new items & sales.
Another option is to send a coupon or sale notification to all of its past
customers that are on the store’s email list. The incentives work well to build
loyalty and repeat sales because customers have a previous history of shopping
at the store are likely shop there again.
Offering free
samples is a promotion method retail stores use to entice reluctant shoppers to
make purchases. A free item offered in a promotion should be a low-cost,
high-value item. A sample of a new perfume may be a good product to give away
for some retail stores. It is important to strategically plan a free sample
promotion. Some customers will purchase other items, while others will take the
free sample and leave. If not executed in the proper manner, a free sample
promotion campaign can cause your store to lose money.
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