Sale Promotions in retail are essential. That is to say, promotion is one of the major tactics retailers use in marketing. Further, they help the slow-moving inventories move faster. However, running sale promotion is not that simple of a task. That is to say, it does not just mean putting up the sales tag and reducing prices. It is much more than this. In other words, retailers need to understand which type of sale promotion will be more effective. In this article, we shall help retailers understand the types of sale promotion that will result in productivity.
Types of Sale Promotion
Percentage off Sale Promotion
One of the most effective sale promotions in retail is the percentage discount. Further, this is the most popular type of sale promotion. Consequently, these are the discounts that work best with the customers. Moreover, it is better that the sale is on the entire store products. That is to say, the percentage discount should be implemented on the entire store products, if possible. As a result, it will be more beneficial as compared to the sale on selected items.
Dollar-off Sale Promotion
As the name suggests, the dollar off sale promotions includes sales on items off by dollar. The percentage off sale and the dollar off sale have mixed reviews. Therefore it becomes difficult to guess as to which one of the two sale promotions is better. However, we can rightly say that the percentage off sale is slightly more popular and effective than the dollar off sale. Having said that, the sale depends on the customers and the price that retailers offer whether it is the percentage off sale promotion or the dollar off sale promotion. Therefore whatever sounds like a good deal the customers will take it regardless of it being a percentage off sale promotion or a dollar off sale promotion.
Therefore what we would suggest is that before implementing sale promotion, retailers should do their calculation first. Then they should decide as to which one suits them best out of the two.
Buy One Get One Free Sale Promotion
This is also another sale promotion that is quite popular. That is to say, the buy one get one free sale promotion is mostly used if retailers want to move their slow inventory. In other words, if retailers want to clear out their excessive stock, they should implement the buy one get one free offer. However, the buy one get one free sale promotion involves the element of uncertainty. Most importantly if the sales are online. That is to say, in most cases, wherever there is an offer of buy one get on free, customers become doubtful of the free product that shops offer along with the product bought.
Multiple Buys Sale Promotion
This is another option if retailers want to clear out their inventories. However, the multiple buys can be successful depending on the products retailers offer. Further, while planning to implement the multiple buy sale promotion, retailers need to analyze that the products they are offering together should be related in one way or another. That is to say, the products grouped together for sale should not be unrelatable. For example, offering one free bottle of wine along with two bought bottles is effective. However, offering one free sofa chair along with a pair of two will not be relatable.
Conditional Sale Promotion
Conditional promoting sale includes offering customers to buy a product and they are offered free products along with it or on discounted prices. Further, it also includes a certain amount of money spent by the customer. Similarly, they are offered to buy the other products on sale or on discounted prices. In the same vein, the customers buy and as a result, they will be offered loyalty. This allows customers to view more products as compared to viewing only those that are on sale. Therefore it is essential that retailers have an effective point of sale system that helps them simplify this sales procedure for them and leave no room for inconvenience and error.
Free shipment sale promotions
If retailers are selling their products online, free shipping is the best option for them. In other words, the free shipping offer is very effective. That is to say, it drives sales and encourages customers to shop.
Giving customers the option to try before they buy
The try before buy offer is increasing with online selling. That is to say, customers are at times doubtful of the products they buy online. Therefore try before buy gives them the option to test the products before buying. Customers order the product. As a result, the retailers ship the product to their house. The customer only pays for the shipment. Retailers give their customers a specific trial period in which the customers try the product and test it. This time limit depends from retailer to retailer and the product as well. Therefore in case, the customers do not return the product, they are charged with the full payment.
This can prove to be an effective offer for online retailers. Having said that, the try before buy option comes with a lot of risks. That is to say, the retailers can at times receive the used product which is of no use to them. In other words, they cannot sell the product to someone else. Therefore it is beneficial if free testing is allowed on items that are highly satisfying and error-free. Therefore in such a case, retailers shall be able to sell more items.