Running Effective Promotions and Discounts

Insight 48: Running Effective Promotions and Discounts

Why Promotions Matter

 Well-planned promotions and discounts drive sales, attract new customers, and enhance customer loyalty. However, poorly executed discounts can harm profitability.

Types of Promotions

✅ 1. Percentage Discounts

Example: “Get 20% off all products this weekend!”

✅ 2. Buy One, Get One Free (BOGO)

Encourages bulk purchases and increases product exposure.

✅ 3. Flash Sales

Limited-time offers create urgency and boost impulse purchases.

✅ 4. Loyalty Rewards

Discounts for repeat customers enhance retention.

✅ 5. Bundled Deals

Example: “Buy two, get one free” to increase the average order value.

How to Run Effective Promotions

Define Your Goals

Are you looking to increase sales, clear inventory, or attract new customers?

Know Your Margins

Ensure discounts don’t cut into profits too much.

Target the Right Audience

Use customer data to personalize promotions.

Set a Time Limit

Limited-time deals encourage faster purchases.

Measure Results

Track sales data to evaluate the effectiveness of the promotion.

Actionable Takeaway

Strategic promotions can boost sales and customer loyalty. Plan carefully, target the right audience, and measure success to ensure profitability.